This article was donated by Intuit to help you understand how your donations to The Fur-Bearers will benefit you at tax time should we receive charitable status. We currently cannot offer tax receipts.
Canada has a generous tax credit system for donors to charities. The Charitable Donations Tax Credit can be up to 29 percent of the amount you donated at the federal level. You may also be entitled to an additional amount reaching up to 24 percent of your donation depending on your province of residence. There are several of rules that determine whether you qualify.
The CDTC is available for anyone who makes a donation to a qualifying donee. A donation is defined as a gift for which no consideration is given in return. Your donation can be money, or it can be anything else of value. If you receive something in exchange for your donation, such as tickets to a show, then the value of what you received must be subtracted from the amount you donated and you can only claim the CDTC for the difference.
Claiming and Calculating the Credit
To claim your credit, report it on your annual tax return. As a rule, at the federal level, your credit will be 15 percent of the first $200 of donations and 29 percent of your additional donations. All provinces also have similar credits, which fluctuate between 4 percent and 24 percent. The CRA provides an online tool to calculate your credit, including the provincial component.
Since 2013, there is an additional credit available to new donors called the First-Time Donor’s Super Credit. If you or your spouse are making your first donation since 2007, an additional credit of 25 percent of the first $1,000 in donations may be available to you.
Donations From Previous Years
Since the CDTC is greater for donations higher than $200, it may be worthwhile to accumulate donations and claim them all together in the same year. There are two ways to accumulate donations: you can combine them with your spouse`s on a single tax return or you can claim donations from multiple years together in the same year. Donations can be carried forward for up to five years.
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