If you are making enough profit in your business, a great way to give back is by donating to a charity. To encourage charitable giving, the government provides a corporation with a tax deduction when the corporation makes a donation to a registered charity.
If you want to donate on a personal level, you can also claim a portion on your personal tax return.
To take advantage of the deductions, you need to keep in mind a few things:
- Make sure you are donating to a registered charity, you can check the current status of the charity you are interested in at on this page of the CRA’s website.
- Make sure you are request an official donation receipt and keep this on file for seven years.
- Make sure to give the receipts to your bookkeeper and accountant so they get recorded in your corporate or personal tax return.
Chief Executive Officer
Ruby Business Solutions
