Pioneer Christian Monthly - December, 1997

A Christmas Present For camp Shalom
Robert Anes

A Christmas Present for Camp Shalom--from REVENUE CANADA?

At the classis meeting on October 18, we were informed that Camp Shalom is facing some major expenditures. Where the money has to come from, only the Lord knows. But unless close to $150,000 is raised for a new range hood in the kitchen and a new swimming pool, and they are installed by the end of April '98, the programs for next year will have to be severely curtailed. And that is just for starters. Classis was rather overwhelmed by the magnitude of the problem, and nobody knew how to tackle it. As it was late in the day, the only thing classis could do was defer it to the finance committee and hope that somebody would come up with something.

Most of the readers of The Pioneer do not know me (yet), but I strongly believe that when problems arise, one does not cave in. Problems are a challenge, and I feel that one of the biggest problems of our times is that people have lost the art of being resourceful. Most of the immigrants who came to Canada in the late forties and fifties had lived through the war and had learned to make do. We became survivors, and although I have no problem admitting that the war years were difficult, I thank God for all the lessons we learned, which equipped us to make a life in a new country.

I thought about Camp Shalom for a few days, and think I have come up with a solution. Let's try and get the money from Revenue Canada! "Yea, right! If only that were true!" I can hear you say. But it IS possible, all it requires is for YOU to be the middle man (or woman).

Here is how it works: The combined tax credits allowed for charitable donations in excess of $200 is about 43 ½ %. It varies from province to province, but that figure is close enough. It means that if YOU write a cheque to Camp Shalom for a thousand dollars, you can deduct about $435 off your income tax payable. That's Revenue Canada's share, and the NET cost of your gift is only $565.

"BUT," I can hear some of you say. "Is this not limited to 20% of my net income? I remember from a few years ago that I gave more than the government allowed."

You are absolutely right. That was a few years ago. For the '96 taxation year, the 20% was more than DOUBLED to 50%. For the 1997 taxation year, that 50% of net income has been increased AGAIN to 75%! This plan WILL work!

We use charitable receipts as a tax planning tool for our clients. They do not HAVE to be claimed; they can be carried forward for FIVE YEARS. That means you can claim a donation made in 1997 up to the year 2002. It also means that on the '97 return, which you are filing in April of '98, you can go back to the year 1992, and claim receipts you could not, or did not claim previously. Always use the older ones first. There are many people who do not know this. Thousands and thousands of dollars will be lost, unless one takes advantage of this opportunity NOW.

May I give you an example? An ACTUAL case from our files? In '91 we were asked by a widow if we could prepare her 1990 income tax return. No problem. Did she have a return for '89? No, she had never filed before.

"Why do you want to start now?" I asked.

She explained that up until that time her income was not big enough to pay tax on, so she never bothered. When she sold her house, and moved into an apartment, the money from the house was invested, which boosted her income into a taxable bracket.

We first did a mock return, to see where we were at. The tax payable came to about $1,700. But she had a number of charitable receipts, going back about a year and a half. When she sold her home, she threw out all the receipts that were never used. Not the right thing to do, but there is a way around it. First we got in touch with the treasurer of her church, and asked if he could prepare 'duplicate' receipts for the years '85, '86, '87, and '88. No problem, and quite legal. We then looked at all the other receipts and found some institutions which she had given more than a hundred dollars to in '90. We wrote them a letter and asked if they could provide duplicate receipts going back to '85. A few weeks later we received a stack of receipts. Claiming the older ones first, we were able to get her tax payable down to less than $300, for a tax saving of well over $1,400! It was time and effort well spent.

Why did I write this story? Because I know there are people out there who will start thinking, and will be able to benefit from it. And if you want to 'top up' your donations for 1997, December is the ideal month to do so.

We read in the Bible that the wise men from the East came and brought gifts. Speaking

of Christmas gifts, there must be many Omas and Opas out there who can take ONE Old Age Pension cheque (or more), and donate it to Camp Shalom. If you are not a grand parent yet, or can not spare that much, don't let that stop you. All gifts are welcome, and I would like to make a challenge. When you read this, Camp Shalom will already have received the equivalent of my November O.A.P. cheque. Are there at least 400 grand parents reading this who can match it? That will solve the immediate problems.

Just make sure your cheque, made payable to Camp Shalom, is dated in December '97 AND mailed before year end. Please consider this prayerfully. All gifts, large and small, are welcome. It will give you an opportunity to invest in the future of your children and grand children, which, in my opinion, is a far better venture then sending your money to Ottawa.

There are seniors who pay little or no income tax, because their income is at a level at which the tax payable is more or less off-set by the tax credits they claim. If you are in that position, but have a son, daughter, or friend who does pay tax, this idea will work for you: You can write THEM a cheque for--say $400--and ask them to match it with $300 of THEIR money and send Camp Shalom a cheque $700. Assuming they have already passed the $200 mark with their own donations, here's how it works: The donation of $700 will generate a tax credit of 7 x $43.50, which is about $305. In other words, it has not cost them anything, but Camp Shalom now has $700! This is completely legal; all it takes is the cooperation of one of your children or a friend.

Robert Anes is a members of the Brantford R.C.A and a member of the Pioneer Editorial Committee.

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