Estate Planning

Donations on the Decline

By Hull and Hull LLP

I was surprised to learn from a recent article in the Globe and Mail that the number of Canadians making charitable donations is in sharp decline.  Figures recently released by Statistics Canada highlight a worrying trend for charities. 

These figures reportedly show total donations dropped to $7.75-billion in 2009, almost one billion less than a couple of years earlier.  Also, last year only 23.1 per cent of taxpayers claimed a deduction for making a charitable donation, marking a 30-year low.

As the median gift amount has risen, it seems that fewer people are giving more money.  The article's author, Paul Waldie, notes that the trend may indicate a growing gap between wealthy Canadians, who have largely continued to make donations, and the middle class, which has found giving difficult during tough times.

Also, the average age of donors has slowly moved upward, rising to 53 last year.  While this may reflect tougher economic times for young people, a bigger concern is that they don't seem to be getting into the habit of donating.  The smaller charities will likely suffer most if this downward trend continues.

I wonder given this climate if we will start seeing charitable beneficiaries litigate more aggressively in cases where payment of their gift is threatened (e.g. through a Will challenge or dependant support claim etc.). 

Have a good day,

Natalia R. Angelini - Click here for more information on Natalia Angelini.

P.S. There is some optimism, as one recent study reportedly indicates aging Canadians plan to give well into their retirement.  I believe we all need to do our part to support charitable causes - either through donations or philanthropic work.  
 

Full post as published by Toronto Estate Law Blog on December 06, 2010 (boomark / email).