Anyone interested in a Money Giving testimonial?

joyfulguyMarch 3, 2011

Yesterday I was preparing income tax returns for low income persons, as a volunteer trained by the Canada Revenue Agency, at our church.

One client was a widower in his mid 80s owning a home in an upper level village, and lacking a private pension, had Canada Pension and Old Age Security, plus some other income for $22,000. total.

I wondered whether it wasn't rather difficult to get by on such a low income, but he said that he could manage it without difficulty.

He had a number of receipts for gifts to charitable causes: ... totalling over $2,400!

I shook his hand and thanked him for his generosity.

I've altered some of the details, in the interests of safeguarding his anonymity.

Would that many more in our society were so considerate of the needs of others.

ole joyful

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It is a wonderful blessing to see that some people are willing to give even when they don't have a lot themselves. It is great that the widower is able to take care of his expenses with such a small income. He obviously has taken the time in his life to take care of what is important.

    Bookmark   March 4, 2011 at 11:15AM
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I know someone who tithes and says that ever since she started she has never lacked for what she needs; she tends to live frugally but doesn't skimp or scrimp.

    Bookmark   March 7, 2011 at 10:18PM
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The person that you did the taxes I think is great that he gives but I also wonder about who pays the taxes and insurance on his home and any cars that he might have. I have known lots of people that would love to have his income but would not be able to afford taxes or insurance and still eat and have funds to go any where.

    Bookmark   March 11, 2011 at 12:05AM
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I live in the US where $22,000 doesn't go very far. I am cetainly impressed that someone living with a smallish income can be so generous. Imagine giving ten percent of your income to charity. Where I come from that would be called "Tithing".

    Bookmark   March 16, 2011 at 10:33AM
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I also know a person, also a senior, who on last year's income of something over $44,000.00 paid zero federal tax and about $5.00 provincial tax, plus a health-care "levy" instituted by our province a few years ago - that's "not a tax", you understand (but that's calculated on the income tax form, and is rather difficult to avoid) of about $450.00.

It took between 20 - 25% of that person's income given to charities and in support of political parties to achieve that low-, almost nil-tax status.

ole joyful

    Bookmark   February 8, 2012 at 6:09PM
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Ed, are political contributions tax exempt in Canada? Here, we can't deduct them.

    Bookmark   March 14, 2012 at 7:53PM
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I heard one time that the amount of tax that would be required on a final estate would be eliminated if you had made arrangements to have that amount donated to a charity.

How would you go about seeing that would be done? The tax has to be completed before distributions are done, I understand.

How could you estimate the amount of tax that might have to be paid after you are no longer around. My assets are very small in comparison to many and I have many unused charitable donations and also considerable unused capital losses, .

I had wondered about a codicil to my will but was told that it would be better to have my will rewritten to show a percentage of my assets are willed to certain charities. I'm not sure that I agree with this as I presently would have no idea what percentage would be close to the right amount. I'm wondering why I couldn't write a codicil to have the final tax partly prepared so that it was known what the tax would be and then have that amount paid to some charities.

Any suggestions.

This is in Ontario Canada

    Bookmark   March 15, 2012 at 5:30PM
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Presuming that you have full confidence in both the skill and the integrity of your executor, which should be a "given", shouldn't it? ... empower the executor to alter the amounts to be distributed in order to be tax-efficient to whatever level/rate you choose.

ole joyful

    Bookmark   April 26, 2012 at 6:52PM
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