Charities hope for the best in turbulent times
By Diana McLaren • Bankrate.com

Burditt said that the charity's donations and number of donors were up last year, but it's "still too early to know what effect economic circumstances will have for 2008." Still, he says, The Salvation Army's work with families, people facing homelessness and those struggling with addictions resonates with donors and has allowed the charity to weather past economic uncertainties. Whatever happens, he says, "we have a long history of making do."

The bigger picture
The charitable donation figures released by Statistics Canada are based on amounts claimed as deductions on income tax returns each year. For 2007, that represented 24 percent of the 23 million Canadians filing returns. However, this does not capture the true picture of charitable giving in this country.

Charitable donations may be carried forward up to five years for income tax purposes. In other words, you can bank your donations so they don't show up in the statistics until the year in which they're claimed.

Tax info
In addition, many charitable donations don't make it onto tax returns at all. "Tax filings represent a distorted picture of the charitable sector," says Nicholas Offord, president of the Offord Group, a management and consulting firm. "In the last few years, many charities have restricted tax receipts to amounts in excess of $20 unless requested. So, many small gifts are not reflected in the total (tax) picture."

The Canada Revenue Agency posts tax information related to charitable donations on its website. It indicates what information receipts must include: a statement that it's an "official receipt for income tax purposes," the charity's business registration number (it will show the letters RR if it's a registered charity), and details such as your name, address and the year and amount of donation.

Lost receipts can be replaced by contacting the issuing charity and requesting a duplicate that indicates it's a replacement copy.