us canada donation Archives - Charity Exchange

Global Donation Matching 101

Admin — Mon, 08 Mar 2021 17:30:04 +0000

How does global donation matching work?

In short, a donor’s gift is matched with another donor’s gift either a private donor, a business, corporation or a charity to double the donation amount. However, global donation gift matching can take on different forms depending on who is offering the program.

Business and corporations
When a business or corporation offers a donation matching program the business is seeking to encourage philanthropy and increase charitable spirit amongst their staff and employees. It also helps charities maximize the charitable income in a creative way. https://doublethedonation.com/ explains how the global donation matching program works with corporations.

Private Donors
Charities create matching donation campaign in partnership with private donors. The goal of the charity is to effectively double the impact of an individual gift. It allows both the donor and others to support the charity. The donor commits to a specific donation amount that is matched by other community donors. The benefits to the charity and donor is an increase in donation revenue and the expansion of their donor base. https://www.charidy.com/ is an online platform that helps charities and donors create matching campaigns.

Charitable foundations and non-for-profit
Charitable foundation looking to help charities offer charitable grants in order to match donations dollar-for-dollar for the duration of a fundraising campaign.

Donor Advised Funds
Charity Exchange offers a unique donation matching program for global donors. Many donors, when donating to a global charity, cannot benefit from a tax deduction if the charity is not located in their home country. Charity Exchange helps donors create a global charitable matching gift that can offer a local tax deduction for their donation. The program matches 2 donors in different countries. Each donor makes a charitable donation to a charity in their home country. The charity in their home country is chosen by the donor in the other country. To learn more about charity Exchanges matching donation program click here.

Read about other donation matching programs in this article by https://recharity.ca/matching-gifts-guide/

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US-Canada Income Tax Treaty for Charity

Admin — Thu, 25 Feb 2021 18:16:52 +0000

In 1980 the U.S. and Canada have entered into a mutual agreement. The agreement was named The US-Canada Income Tax convention.

Under the terms of the United States-Canada Income Tax Treaty agreement, recognized religious, scientific, literary, educational, or charitable organizations that are organized under the laws of either the U.S. or Canada will automatically receive recognition of exemption without application in the other country.

U.S. organizations must be recognized as exempt under section 501(c)(3) of the Code in order to qualify for this treatment. Similarly, Revenue Canada must recognize Canadian organizations as Canadian registered charities. Recognized charitable organizations resident in one country will be eligible to receive deductible charitable contributions from residents of the other country.

The treaty provides limited tax benefit to individuals residing in one country with income in the other country.

To read the full treaty click on the link to the Canadian Government website and here for the US Government website

The post US-Canada Income Tax Treaty for Charity appeared first on Charity Exchange.

Donating to American or Canadian Charities

Admin — Mon, 15 Feb 2021 15:38:50 +0000

Americans looking to donate to Canadian charities or Canadians looking to donate to American charities (Part 2)

In part one we discussed the advantages and the disadvantages of donating directly to charities in other countries. In part two we will discuss the option of donating to international charities through a local charity in your home country.

There are some charities and foundation that are setup to support international charitable activities abroad. Some of these charities and or foundations include World Vision, Against Malaria Foundation, Doctors Without Borders and many others.

Supporting international causes through these charities can offer the full tax advantage. In addition, many of these charities are running these charitable activities abroad or are intimately involve in those international charitable programs. However, most of these charities are only setup to support specific international charities or causes that they operate or choose to fund. This limits the donor’s ability to support a specific charity that may not have relations with these local charities and or foundations.

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

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