While Canadians have been generous supporters of charity, a recent study has revealed that Canadian charities have, over the past several years, seen a decline in the donations received from individuals. This has left many charities financially vulnerable at a time when a growing population needs their services the most.

In Canada the government (at both the federal and provincial level) assists in the funding of charities by sharing the cost of the donation. Since 1988, contributions made to registered charities, have been eligible for a non-refundable tax credit. In an effort to reverse declining donations, the government has made significant improvements to the charitable giving tax rules, resulting in greater than ever tax savings for donors. As an incentive for those considering a larger donation to charity, the government has also increased charitable deduction limits which currently allow an individual who makes a significant gift to charity, to use their donation tax credits to write off up to 75 per cent of their net taxable income in any given year. The increase in deduction limits now makes it possible (depending on the size of the donation) for an individual to eliminate the taxes paid upon death (note: gifts to charity are typically not affected by the alternative minimum tax rules). Most importantly, through the strategic use of the generous charitable giving tax rules, an individual has greater control over who receives their assets (i.e. their loved ones and the charities they wish to support) and those who do not (specifically the Canada Revenue Agency).