Unit 9 1117 Mt. Fosthall Drive,
Vernon, British Columbia
V1B 3Z9 888.545.3780
Registered Profitable Gifting Arrangements
Canadians wishing to support charity can give more than ever thought possible by donating through an RPGA - a Registered Profitable Gifting Arrangement. A Gifting Arrangement is defined in section 237.1 of the Income Tax Act as a form of RPGA where a donor achieves a tax credit that is greater than his/her out-of-pocket cost over a four year period. There are many other types of RPGAs, however, anything that meets the above general definition of a Gifting Arrangement must be registered with the Canada Revenue Agency. The registration is mandatory and any promoter or sales representative who promotes a program meeting this definition faces serious penalties and fines if the program is not registered.
By definition, the program is profitable to the donor, since the tax benefit exceeds the out-of-pocket cost over the period. A compliant RPGA must ensure that the only 'profit' a donor can make is the tax credit. Any other form of profit, kickback or advantage related to the gift will give the Canada Revenue Agency solid grounds for disallowing all or a portion of the tax credit. If the tax credit is the only 'profit' to the taxpayer, it is a valid credit that has been established in the federal tax courts a long time ago and must be allowed.
Therefore, a Registered Profitable Gifting Arrangement lives up to its name. It is Registered with the Canada Revenue Agency, it is a Gifting Arrangement as defined in the Income Tax Act and it can be very Profitable to donors. The RPGA that we promote works harmoniously with the Income Tax system, applying the principles of modern business finance to maximize the amount of money that you can donate to charity. This leverage benefits the registered charity with more funds and goods for distribution as well as benefitting you, the taxpayer, to receive a larger tax credit.
Simply put, an effective, legally compliant RPGA will provide you with the rare opportunity to provide real help to real people while being rewarded for your generosity.