I work for a registered charity which is authorized to issue receipts for donations so that people can receive a tax deduction for their generosity. The more they give, the more they get back. When the federal and Alberta amounts are combined, the refund on donations over $200 is close to 50%, which is nothing to sneeze at.
However, our charity (which is a church) is, of course, strictly forbidden from engaging in partisan politics. If we were to do that, we would lose our charitable registration and would no longer be able to issue receipts to our members for tax deductions.
Does it bother me that I can’t engage in party politics in my official capacity as pastor of my church? No, not really. On the other hand, if I was working for a charity that was trying to alleviate child poverty in Canada, I might feel a little more constrained by the system. After all, child poverty can’t be solved by donations alone. To use an old illustration, if you start noticing that the river is full of drowning babies, it’s not enough to have an efficient rescue operation; sooner or later, someone needs to go upstream to find out who’s throwing them in. And the answer to that question may well have political implications. But charities aren’t allowed to go near that, or they lose their status and their ability to issue income tax receipts.
And now, behold the hypocrisy of the Canadian political system. Today I gave a donation to a Canadian political party (most of you will be able to figure out which one!). On their website, they promptly informed me that according to Canadian law, when income tax time rolls around, I will receive a tax refund equal to 75% of my donation!
That’s right, folks. Registered charities can’t get involved in party politics or they lose their ability to issue income tax receipts, but if you donate to a Canadian political party (which engages almost exclusively in party politics), you’ll get 75% of it back at income tax time. That’s over half as much again as you’d get for donating to a charity that helps to feed the poor, as long as they don’t get political about it.
You couldn’t make this stuff up, could you?