BobLeponge
Junior Member
Hello,
I'm in Canada and let my annual income (as a salaried employee) be 60.000$ and my annual federal and provincial taxes be 15.000$. There's a non-profit organization (an animal shelter) in my region which was operating from 2001 to 2013, that had to close mainly due to a lack of financing, which I would like to help. I would like to offer them a significant (>10k$) financial help to (hopefully) start over and would like to know what are my options to maximize the tax refund I may obtain?
As far as I've researched, donations made to registered charities in Canada can be used to obtain a tax refund of around 50%, dependently of the province. Meaning that if I were to donate 10.000$, I could obtain an approximate tax refund of $5.000.
However, let's say that I contact this non-profit and offer them to have the charity registered under my name and say that I provide them with a credit card from which they can pay their operational expenses (veterinarians, food, etc). I wouldn't be personally involved into their activities. Since the organization would be legally registered under my name and since I would be engaged into their expenses, are these expenses deductible from my taxes the way operational expenses from a business would be? Could I potentially deduce 100% of expenses engaged by them (using my money) in one fiscal year and therefor, if they were to require 15.000$ from my money to operate the shelter in a given fiscal year, I could deduce 15.000$ from this year's taxes and would thus pay no taxes at all? This seems ideal, as their financial needs would be between $10.000 and $20.000 a year, I believe, and, using this strategy, I could offer this help with no or minimal actual expenses on my end.
My legal and financial knowledge is fairly limited, so any insight regarding this would be greatly appreciated, including any downside or danger I may not be aware of.
Thanks a lot !
I'm in Canada and let my annual income (as a salaried employee) be 60.000$ and my annual federal and provincial taxes be 15.000$. There's a non-profit organization (an animal shelter) in my region which was operating from 2001 to 2013, that had to close mainly due to a lack of financing, which I would like to help. I would like to offer them a significant (>10k$) financial help to (hopefully) start over and would like to know what are my options to maximize the tax refund I may obtain?
As far as I've researched, donations made to registered charities in Canada can be used to obtain a tax refund of around 50%, dependently of the province. Meaning that if I were to donate 10.000$, I could obtain an approximate tax refund of $5.000.
However, let's say that I contact this non-profit and offer them to have the charity registered under my name and say that I provide them with a credit card from which they can pay their operational expenses (veterinarians, food, etc). I wouldn't be personally involved into their activities. Since the organization would be legally registered under my name and since I would be engaged into their expenses, are these expenses deductible from my taxes the way operational expenses from a business would be? Could I potentially deduce 100% of expenses engaged by them (using my money) in one fiscal year and therefor, if they were to require 15.000$ from my money to operate the shelter in a given fiscal year, I could deduce 15.000$ from this year's taxes and would thus pay no taxes at all? This seems ideal, as their financial needs would be between $10.000 and $20.000 a year, I believe, and, using this strategy, I could offer this help with no or minimal actual expenses on my end.
My legal and financial knowledge is fairly limited, so any insight regarding this would be greatly appreciated, including any downside or danger I may not be aware of.
Thanks a lot !
