Leveraged charitable contributions - Charitable Giving in Canada -

QUESTION: How do feel about an organization such as Universal Fund Trusts
based in Markham Ont who charitable tax receipts of $5000 for each $100
donated? Is this allowed in the Canadian income tax act. Whom would you
recommend in the Kitchener- Waterloo Ontario area?

Thanking you in advance

david ingram replies:

I would not touch the Charity deal with a ten foot pole or an eleven foot
Englishman. There are a whole bunch of these charitable schemes set up and
the CRA shut most of them down a year and a half ago.

A charitable deduction should represent the invested funds and giving stale
dated drugs or revalued artwork may be a legitimate venture on a one time
basis, they do not stand up to scrutiny when peddled by a bunch of boiler
room people.

There are things that people miss however. For instance, if you owned stock
or land or mutual funds and wanted to give money to your favourite charity,
the best way is to give the actual land, stock or mutual funds. A little
known fact in the tax act, cuts your tax in half on any capital gains when
you give the actual stock, etc., to your charity. This is really important
when it comes to estates and wills.


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