University Alumni living in Canada donating to US Organizations.

YV — Tue, 08 Jun 2021 16:18:30 +0000

The top 20 universities in the United States are Harvard University, Stanford University, Massachusetts Institute of Technology (MIT), University of California, Berkeley (UCB), Columbia University, University of California, Los Angeles (UCLA), Yale University, University of Pennsylvania, Princeton University, Cornell University, New York University (NYU), University of Chicago, Duke University, Johns Hopkins University, University of Southern California, Northwestern University, Carnegie Mellon University, University of Michigan, California Institute of Technology (Caltech), Brown University.

There are many Canadian residents who are expats or are alumni of Universities or Colleges in the United States. At times the university, college or community organization in the US hold fundraisers and the expat or alumni seek to donate and or support their cause. Often the question of receiving a Canadian tax-deductible receipt for the donation to the charity in the US is discussed and explored.

For example, alumnus of Harvard University, Stanford University or Massachusetts Institute of Technology (MIT), who are living in Canada and want to support their former school with a donation of $10,000. When sending the donation directly to the American institution, the university may issue a US tax-deductible receipt. However, the former student is currently residing and working in Canada and the US tax-deductible receipt offers no tax benefit or deduction on their tax return.

Charity Exchange offers a solution that can help alumnus in Canada of US educational institutions make a US tax-deductible donation to the Canadian institution through their donation matching program. The donor signs up for a charity exchange donor advised fund account and makes a matching donation using the global matching donation platform. The donations is matched with donors in the US and the US charity or institution receives their donation from the US Donor Advised Foundation.

To learn more about the donation matching program click here

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Cross Border and International Donations

Admin — Thu, 11 Feb 2021 20:27:25 +0000

How can Americans looking to donate to Canadian charities or Canadians looking to donate to American charities donate?(Part 1)

What is the best way for Americans looking to donate to Canadian charities or Canadians looking to donate to American charities? There are several ways to go about cross border donations. Over the coming weeks we will explore some of the options and the possible advantages and or disadvantages. In this post we will explore the most common way to donate to a charity across the border.

The most common way to donate to a charity in another country is by sending the donation directly to the designated charity on the other side of the border. For example, an American resident sends a donation to a Vancouver homeless shelter. The donor can send it by cheque, wire transfer, or credit card if the charity accepts credit cards. The advantage of this donation method is the charity receives the donation directly into their account from the donor without any intermediaries.

However, there are some disadvantages. First, the donor would need to convert the US dollar funds into CAD dollars. If the donor does not have a special FX rate with their bank or credit card the donor may pay 3-4% above the market currency exchange rate. Second, if the donors is sending a wire, there may be a significant wire fee and if the donor is paying with a credit card the charity pays up to 4% credit card processing fee. Third, although the donor may receive a Canadian tax receipt, the US donor can not use the tax receipt for a US tax deduction. (Unless the donor also files a Canadian tax return and claim the tax deduction on their Canadian earnings, in which the IRS may allow for a limited deduction in some circumstances.) As the IRS would only accept a tax receipt from US charity, not a foreign or international charity. The same apply to Canadians donating to a US charity.

Charity Exchange can help donors with its unique donation matching program for cross border donations. Visit Charity Exchange FAQ page to see how matching donation work.

Click here to read part 2 Donating to American Charities

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University Alumni living in Canada donating to US Organizations.

Cross Border and International Donations