The number of Canadians claiming a charity tax credit declined by 165,330 in 2021 to the fewest in more than 30 years, Statistics Canada reported Tuesday. Fewer than 5 million tax filers claimed donations.
“This decrease might be related to the increased use of crowdsourcing platforms and other methods of funding that do not provide donation receipts for tax purposes,” the report said. Pandemic impacts may also have been a factor.
The number of charity tax credit claims peaked in 2005 at 5,833,930. The most recent figures put charitable donors at 4,967,050, a decline of 15 percent.
From the beginning of the COVID-19 pandemic, charities warned of dramatic losses due to lockdown impacts on fundraisers. In 2020 testimony at the House of Commons finance committee, charities appealed for more generous tax credits to stem job cuts and revenue losses, according to Blacklock’s Reporter. The Canadian Cancer Society estimated it lost half its budget, “between $80 million and $100 million,” CEO Andrea Seale said….