Creative Charity

I see a lot of suggestions about what we should do with our tax refund from Mr. Harris and the Ontario treasury. It seems to be every charity's hope that we will give it to them. I do not blame them for trying, but how can we get the most for our rebate money?

Now for a start, I really do not expect that many people will give it away, as we Canadians tend to be rather closefisted with our hard earned dollars. For example, I recently read that less than 1% of Canadians will actually give financial support to political parties or individual candidates. Business interests are where governmental financial support comes from. I think that charities and environmental organizations fare a little better in getting support, but not much.

Many years ago, I read that we deserve whatever we get if we do not participate. If we do not participate, and financially support, the Parties and individuals who end up running our governments, then we can expect some other interest to fill the void. Since that enlightenment, I have financially supported one party or another. Sometimes I would send a donation and then end up voting for the other party. So much for my party loyalty! Red? Blue? Green? - I go with my conscience.

I could say the same thing for other organizations that rely on public contributions to survive. I go with my conscience. I also know that when I give, they all use part of my money on literature and postage, encouraging me to give more, and more often. I tell them that I give annually and not to bug me. Unsolicited mail at other times goes into the recycle, often unopened.

Lets assume that all of us, more or less, believe in some standard principles. I.e., a livelihood, political freedom, religious freedom, the continuation of the planet, social justice for the less fortunate, the use of earth's gifts and resources for all people etc.. Well, if this is the case, then we should support these ideals. Here is your personal chance to support them all -- at the generosity of Mr. Harris. Well, you might at least think about it.

One: Give the $200 to the Ontario political party of your choice. Tell them that the donation to your chosen party is because of your personal and deep concern for the environment and that all future donations hinge on their actions. (I would like to say give it to the Ontario political party of MY choice, but that seems to be too transparent.)

Note -- when you donate to a registered Ontario political party you will be given a tax credit of 75% on the $200.00. So far, you have now used $50.00 of the original $200.

Two: Give the forthcoming income tax credit to the Federal party of your choice. Tell them the same thing that you told the Provincial Party.

Note -- When you give to a Federal party you will be given a tax credit of $100.00 (75% on the first $100 and 50% on the other $50.)

Three: Take the credit that the government will give you back when you file your taxes, (I.e. $100.00) and give that to your religious organization. Tell them to look at saving the planet as well as your soul.

Note: For your charitable donation to the church you will be given a credit of approximately 50% or about $50.00.

Four: Take the $50.00 and give that to an environmental organization of your choice. (You will get a further credit on the $50.00 of about $25.00.)

Fifth: Take the $25.00 that is left and sign this over to the Ontario Opportunities Fund when you do your income taxes in the spring. This will be credited against the Ontario debt. For this loyalty to your Province you will be given a tax credit of about $12.50 that you can apply to the next year's charitable donations.

Now, if we calculate the tax credit and donations, you will come out even. Nothing out-of pocket and nothing-in-pocket. (More or less that is, depending on how many other donations you have, and the tax bracket you fit into.)

Now doesn';t this make sense? In the example you gave away $525.00 and still have a credit of $12.50 for the next year. On top of all this, it didn';t cost a red cent. (Mind you, you could have bought groceries with the $200.00)

This ends my, first ever, exercise in creative finance - thanks to Mr. Harris. (Small print disclaimer -- please call your accountant before accepting this or any other financial advice.)

Have a nice day.