T's the season to feel charitable

	T's the Season to Feel Charitable
	T's the season to feel charitable. But, if you're giving just to beat the taxman and a promise of a sweet windfall in refunds, be careful. Your good intentions may come back to bite you. For every legitimate charitable tax scheme out there -- my favorite being SickKids Charitable Giving Fund -- there are a host of others with questionable practices and that are easy to fall for when a slick financial guru is flogging them. Take this one: Invest in vintage comic books, help the world's underprivileged kids and get a big tax break. This one was even being flogged through a church, with this convincing promotional piece: "We believe that these comics will not only bring countless hours of joy to the underprivileged and disadvantaged children who will receive these comics, but will also assist them in their education. We also believe that reading in an English medium will be used in various literacy programs of our parishes and missionaries." What a powerful endorsement, enough that even a savvy accountant fell for it, and coughed up $3,000 for this tax shelter. She was spitting nails when five years later a reassessment notice from Canada Revenue Agency (CRA) hit her mailbox, demanding she repay $15,000. There are other schemes, such as donating art and computer equipment.


	Charitable Giving Tips
	The bottom line is that the CRA is clamping down and auditing charitable schemes that inflate the worth of the donation. And with the festive season now here, plus the Dec. 31 deadline fast approaching to make a donation and claim a Charitable Tax Credit for 2007 -- the CRA has launched an awareness campaign, called "Be an informed donor." "Canadians are very generous people," said National Revenue Minister Gordon O'Connor, who points out 5.8 million Canadians claimed donations to registered charities on their 2006 income tax returns. "As a government, we have taken steps to encourage charitable giving and to inform Canadians on the ways that they can ensure that every dollar given to charity has the maximum possible impact and stays out of the hands of fraudsters," he added. First, you can go to www.cra.gc.ca/donors or call 1-888-892-5667 to ensure the charity is registered. Charitable giving tips: - Gather as much research as you can about the charity. - Ask for documentation, annual reports, budgets and don’t be fooled by slick presentations. - Find out how much of the donation goes to charitable activity. - Walk away from high-pressure promoters. - Never give out personal financial information. - Be warned that a new poll shows four in 10 adult Canadians have been victimized by fraudulent telemarketing, which can lure you into donating to charitable scams. If you are a victim call PhoneBusters at 1-888-495-8501. (By Linda Leatherdale)

	December 12, 07. Issue #06. Unsubscribe to Newsletter


	If you are preparing to make donations to charities and take advantage of government credit, the left article quoted from Toronto Sun will give you some helpful hints on how to avoid charity scams.



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