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An assessment of the impact of tax incentives relative to socio-economic characteristics on charitable giving in Canada

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  • Belayet Hossain
  • Laura Lamb

Abstract

This research examines the effectiveness of the Canadian tax incentive system for charitable giving while attempting to deal with two persistent methodological problems in past research. The Heckman selection model and the ordered probit model are used to examine the Canadian tax incentive system with 2010 survey data. The results imply that the effect of the tax credit systematically increases with an increase in donation expenditure suggesting that the higher tax credit for larger donations is more effective than the lower tax credit for smaller donations. While the results suggest that the current tax policy is effective, socio-economic characteristics, such as wealth, household income, and university education, appear to have a greater impact on donations.

Suggested Citation

  • Belayet Hossain & Laura Lamb, 2015. "An assessment of the impact of tax incentives relative to socio-economic characteristics on charitable giving in Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 65-80, January.
    • Handle: RePEc:taf:irapec:v:29:y:2015:i:1:p:65-80
    DOI: 10.1080/02692171.2014.945992
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    References listed on IDEAS

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    1. Belayet Hossain & Laura Lamb, 2012. "The Dynamics of Environmental Giving in Canada: Evidence of Rising Demand for Environmental Quality?," Economic Papers, The Economic Society of Australia, vol. 31(2), pages 265-273, June.
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    1. Rose Anne Devlin & Wenzhuo Zhao, 2016. "Philanthropic Behaviour of Quebecers," Working Papers 1607E, University of Ottawa, Department of Economics.
    2. YoungRok Kim, 2021. "Politics, Religion, and Tax Incentives for Charitable Giving in South Korea," Korean Economic Review, Korean Economic Association, vol. 37, pages 141-155.

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