Social Capital

As Canadians, we are fortunate to live in one of the wealthiest countries in the world. A global study in 2018 found that Calgary is the fourth most “liveable” city in the world with Toronto and Vancouver also in the top 10. However, with that advantage comes the opportunity to share with those who don’t have as much.

We each have a certain amount of social capital – money to support those less fortunate than us. A lot of the time, this money is collected as taxes and administered through a variety of government programs. However, there are also tens of thousands of registered charities in Canada that focus on scientific research, humanitarian relief, community programs, etc. If you take a look, you are guaranteed to find an organization that matches yoru beliefs and values and that does work you find meaningful.

Many people believe they do not have the funds available to them to donate. While at the same time, they resent the amount of income tax they pay. There is a simple answer to both of those concerns.

When you make a charitable donation to a registered Canadian charity, you can receive federal and provincial tax credits of up to 50% of the value of the donation. If you live in Alberta and give $1,000 to a homeless shelter, or a research facility, or an animal rescue foundation, or a youth sports organization, you will pay up to $500 less in taxes.

You can choose to personally direct where your social capital is spent instead of giving your money to the government in the form of income taxes and allowing them to make that choice for you through their programs. We all give one way or the other.

You can visit CRA’s website  to find out more information about registered charities.