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October 15, 2021

The CRA will tax money raised through crowdfunding

Crowdfunding has become a legitimate avenue for entrepreneurs and artists to raise money for their unique ideas or projects, but anyone crowdfunding needs to know that the CRA can tax you on the money raised.

If a person received money for their business or project, such as a movie, and they receive the completed product or a promotional item, but not equity or a cut of the profits, then that's considered to be business income. But whether those crowdfunding expenses are deductible or not depends on whether they follow the Income Tax Act.

There continues to be debate in Canada about the pros and cons of crowdfunding, but the latest statistics by research firm Massolution show that $2.7 billion was raised worldwide for more than one million campaigns in 2012.

Meanwhile, both the Ontario and Saskatchewan governments are looking into equity crowdfunding, which would let startups and small businesses attract potential investors through crowdfunding.

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June 05, 2021

Canadians give back to their community

Count me in.

I worked for many years for a non-profit association that relied solely on its volunteers.

Just witnessing the enthusiasm and dedication of the volunteer board of directors and volunteers who worked diligently organizing business and social events was inspiring.

And volunteerism is not only rewarding but it is also contagious. In fact, many people who attended the events often asked how they could volunteer to help out as well.

This group of individuals held full-time jobs yet gave so willingly and selflessly of their time and talents.

According to a new study by BMO Financial Group, 70 per cent of Canadians say they volunteered for a charitable organization in the past year.

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October 03, 2021

Rare 55 year old bottle of scotch headed for auction

Canadian whiskey connoisseurs have reason to celebrate with the news that the Glenfiddich Janet Sheed Roberts Reserve 55 Year Old has arrived in the country. Even better, those with deep pockets will have an opportunity to take it home.

The renowned Scotch whisky has earned acclaim as one of the rarest and most expensive single malts in the world, with only 11 bottles ever being produced. Bidding will start at $50,000 when it hits auction on October 19th at Toronto's Trump International Hotel & Tower. Bidders can also participate in a live online auction. Sally Gordon, Janet Sheed Roberts' (1901 - 2012) great-niece will be on hand.

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May 15, 2021

Do you care what panhandlers do with the money you give?

Old joke: A panhandler knocks on the door of the rectory one day looking for a handout. The priest gives him five dollars, saying “Now spend this for food and not on booze.”  The panhandler takes the money, grumbling, “Father, I don’t tell you how to spend your money, do I?”

And should you? If you flip someone a toonie, are you entitled to ask its destination?

It's not chump change. A survey of Toronto panhandlers suggests that the average amount collected is about $300 a month. They also collect about another $200 a month from other sources like welfare, the results suggest. And that was a few years ago.

Some advocates for the poor say give, and they criticize any campaign or ordinance that restricts panhandling or discourages giving. But others disagree, saying that handing over spare change doesn't really help, and often harms, the recipient.

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May 09, 2021

Should there be some sort of limit on yard sales?

Lawmakers in St. Lazare, Quebec are trying to limit yard sale frequency so people can't turn their front lawns into a virtual flea-market every week.

The town council recently voted to limit yard and garage sales to two weekends a year – the Victoria Day and Labour Day weekends. The good news though is that residents will no longer need a permit to hold a garage sale and can make their own signs.

Several local towns are moving to do the same and many residents are balking: “The stupidity of the municipal council once again overrides the wishes of the people,” says one disgruntled St. Lazare citizen.

It's actually a continent-wide issue, it seems. Tough economic conditions have led to a rise in vendors who see driveway deals as a way to make a few extra bucks, not just clean out the basement.

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March 08, 2022

Will pay-what-you-can cafes ever catch on?

Is converting existing a few restaurants into a nonprofit pay-what-you-want eateries a gimmick or a good way of helping to feed the needy and raising money for charitable work?

Ron Shaich, who heads up the popular Panera Bread chain in the United States, certainly thinks it's the latter. The chainm's few pay-what-you-can spots look like a typical Panera location, except when you hit the checkout.

The menu board lists "suggested funding levels," not prices. Payments go into a donation box, though the cashiers provide change and handle credit card payments.

In many ways, "it was a test of humanity," says Shaich. "We didn't know if people would help each other or take advantage."

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February 01, 2022

Site boosts charity of the day, $1 at a time

Yesterday, we talked about the incredible popularity of Groupon and its clones. Now there’s a similar service that draws attention to struggling non-profits that could use a little help.

Upstart Philanthroper follows the daily-deal styling of Groupon but instead features one charity per day, allowing you to donate as little as a dollar – most charities require a minimum of $10 or $20 – if that’s all you can manage.

The thinking here is that handing over a buck is as tempting as, say, downloading that new app or a cup of discount joe at Tim Hortons.

The tax-deductible money reaches those in need quickly, Philanthroper claims, with most featured charities drawn from six major categories – arts, education, animals, environment, human rights, and health – receiving the funds within the week.

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January 03, 2022

Site highlights charity of the day, $1 at a time

Yesterday, we talked about the incredible popularity of Groupon and its clones. Now there’s a similar service that draws attention to struggling non-profits that could use a little help.

Philanthroper follows the daily deal styling of Groupon but instead features one charity per day, allowing you to donate as little as a dollar – most charities require a minimum of $10 or $20 – if that’s all you can manage.

The thinking here is that handing over a buck is as tempting as, say, downloading that new app or buying a cup of discount joe at Tim Hortons.

The tax-deductible money reaches those in need quickly, Philanthroper claims, with most featured charities drawn from six major categories – arts, education, animals, environment, human rights, and health – receiving the funds within the week.

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December 08, 2021

Are charity scams on the rise?

It’s a sad fact that we live in a world where charity scams seem to be on the increase.

Just last week, Tina Michele Sammons, a healthy 37-year-old woman from Victoria, was brought up on fraud charges after she allegedly told everyone she could find that she had severe brain cancer and needed money to fight it.

How much did she snag from well-meaning donors? About $300,000, at last count.

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December 02, 2021

Time to fight back on school fundraising?

As any parent can tell you, school fundraising is an expensive fact of life.

Public school, private school – it doesn’t matter. Budgets are tight and, from kindergarten on, families are subject to an unceasing barrage of chocolate bars, grapefruit, frozen blueberries and wrapping paper to foist on unsuspecting relatives.

But it’s time for parents and principals to wise up and fight back, says CBS Moneywatch’s Sarah Butler – and, in many cases, that means simply writing that cheque.

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...