Charitable Donation Tax Credits – Here’s What You Need to Know

 

 

Every year, Canadians donate billions of dollars to charitable and non-profit organizations. In doing so, we support the financial well-being of organizations and groups whose causes we believe in and whose values and principles reflect our own.

The Governments (Canada and provinces) recognize the difference these donations make in the community and rewards citizens by offering tax credits or by matching donations made by individual taxpayers.

How Tax Credits Work

When you make a donation directly to a charity of your choice, you get a tax credit at year-end. Generally, the higher your donation amount, the higher your tax credit.

  • Depending on your province of residence, a 19 to 32.5 percent tax credit is applied to the first $200 you donate. You could receive up to 48 percent in tax credit on any additional amount (52 per cent if your taxable income exceeds $200,000)!
  • A 25 percent “super” credit is available to first-time donors up to a maximum of $250.
  • Couples can combine their donations on a single tax return to maximize the credit received. Unclaimed donations can be carried forward up to 5 years.

Keep in mind that only Canadian charities registered through the Canada Revenue Agency are permitted to issue official donation tax receipts.

Donating Other Assets

Money isn't the only type of tax-deductible donation you should consider. Shares, life insurance policies, art pieces and other assets can be donated.

There are two ways that donating securities (shares and debt obligations listed on stock exchange, bonds, units of mutual funds trust or shares of a mutual fund corporation) can help keep more money in your pocket during tax season. First, you will get a donation receipt for the fair market value of the securities and you can claim this amount as a donation on your income taxes. Second, the amount of capital gain relating to the disposition of these securities will be equal to zero in your tax returns.

Donate Today to a Great Cause

Desjardins Insurance is a proud sponsor of the Heart and Stroke Foundation, which invested close to $31 million in 2015 in support of nearly 1,000 researchers in medical institutes, universities, hospitals and communities across Canada.

We welcome you to join us in supporting this important cause. Click here to donate

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