The
Budget indicates that the Federal Government will cease distributing new
pennies, given that each penny costs 1.6 cents to produce. While existing pennies will continue to have
value indefinitely, the Budget suggests that the Federal Government will work
with charities and other institutions like Imagine Canada, to arrange fundraising campaigns around
the elimination of the penny.
We assume
that “penny fundraising” will take place almost entirely without
official donation receipts being issued – relying on a mix of pure
philanthropic motives and a desire to put penny jars to better use. Given the absence of any tax credit in penny
fundraising, donors may well be more willing than usual to make gifts to
non-charitable non-profit organizations.
Thus, non-profit organizations should be particularly aware of this
(small) fundraising opportunity.
