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Originally Posted by Yakk
From what I can tell, the money you 'get back' is non-contractually bound. Ie, at any time, someone could pull the rug out from under you. Or so it seems on the surface...
I'd definately contact a lawyer before doing anything this .. strange.
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Actually - I did contact a lawyer - a few of them.
The law department from a large multinational software company took a look at it as well.
After providing them with the articles in the tax act that state these same things - they agreed that it would hold up in court and it was perfectly legitimate.
After asking the lawyers - I thought I'd seek a second opinion - so I showed it to my accountant. Then I showed it to a higher up at one of Canada's major banks. They loved it and even backed me to help people participate. Banks don't seem to make many mistakes when it's dealing with money...
I'm actually showing people a stronger system these days that fits better with my current job. Global Learning Gift Initiative. Similar system - but gives away free courseware to people who can't afford education. It hits closer to home.
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Originally Posted by Yakk
! I would love to find guaranteed investments with a higher interest rate than a consumer morgage. Can you point me at one?
4.7% 5 year fixed morgage vs 2.8% 5 year GIC. That's a 1.9% gap.
Equal interest rate to the morgage wouldn't do anything. The tax deduction from the morgage would cancel out the income earned from the investment.
Argueably, if you could find a capital investment with a rate of return that matched your morgage interest rate, you'd be golden.
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I have to admit - I'm not a master of these things yet. But the banks can do this for you. Or licensed financial planners anyway. It's called the "Smith maneuver" if you want to look it up. I know a few folks who can do it for you if you're looking. Drop me a PM and I'll send you their contact info.
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Originally Posted by Yakk
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Actually - Global has been around for 3 years. CRA has never questioned the worth of the courseware given - ever. We use the same appraisers that the CRA uses to make sure we're legit. Also - nobody using this system has been audited since we actually donate some of the materials to the Canadian prison system to help people there find honest jobs when they get out, etc. A few government places get help from our systems as well. It's actually even been given the thumbs up by an ex-minister of Finance (old head of CRA)
If someone really wants to do all of the reading - it's all in the Tax act. PM me if you're seriously thinking of reading the articles but I'll warn you it's not much of a fun read.
Using systems like these - I've raised 160,000 in cash and 480,000 in goods for charities in Canada. I've seen the change it makes - and I've done my research enough to feel good about what I do. If it helps save some people a little money, it helps the charities out, and it's legal and isn't challenged by the government - then I think it's a good thing.
If you don't want to do the research and take a look at a different way of directing your tax dollars - that's fine too. I was a skeptic until I took a deeper look, and now I'm preaching it to anyone that's willing to listen.
Who am I? A nobody. Honestly - I don't even have a Financial Background. I'm a techie. But if a nobody who isn't even in the industry can raise over half a million for charity once in their lives and actually see a small change in the country - imagine what would happen once someone with strong leadership abilities were to find out and help this grow. I just do what I can.