Whether you’re donating to a charity, participating in a marathon or donating funds to your local church, your generosity by helping others in Canada is recognized and appreciated. By your acts of kindness, there is an existing tax credit system that is made specific for donations.

Eligible Donations

A donation is a voluntary gift for charity without the expectation of anything in return. With that said, anyone who willingly donates to a qualifying donee is able to receive this tax credit.

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What is a qualifying donee?

A qualifying donee is a registered organization that can issue official donation receipts for gifts it receives from individuals and corporations. Keep in mind that it is important to confirm whether or not a charity is registered and able to issue receipts. Visit this link to search up the name of the charity you’re interested in donating to or call the CRA at 1-800-267-2384.

How does the donation credit affect my taxes?

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By claiming donations made you are provided a tax credit to help reduce the taxes you owe. However, be mindful that because donations are non-refundable tax credits, you are to claim your other credits first, prior to this. If that amount is acceptable to bring your tax payable to 0, you won't be able to utilize your donations to increase your tax refund.

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Am I able to transfer my own donation credits to my spouse or common-law partner?

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The simple answer is yes! Either person can claim the donations credit, allowing you to maximize the benefit received from this credit.

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Is there a maximum I can claim?

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In almost all scenarios, you can claim up to 75% of your total donations from your net income.

Animal Charities: Does this count as a donation?

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The answer is yes, you are able to do so! There are many animal shelters that solely depend on donations which is why it is a great way to utilize your donations for the year.

Is it possible to get a list of my charitable contributions?

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Yes, it's possible to receive this information! A tax receipt will be issued to you from the charitable organization you donated to before the income tax due date of your total amount of donations for the tax year. Be aware that the CRA requires an original bill of payment in case they request proof of donation.

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If your donations are made through your employer or pension, please check your partnership financial statements or income tax slips including:

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●    T4

●    T4A

●    T3

●     T5013

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How About Donations From Previous Years?

It may be more beneficial to you if you claim all accumulated donations within the same year, as the CDTC is greater for donations higher than $200. Donations can carry over for up to 5 years, which means that you can claim donations from different years together, as long as it is reported within the same year.

It’s all about Generosity

At the end of the day, it’s not all about the money or claiming donations for your tax return. The important thing to remember is that being generous with your money or even your time speaks volumes. Helping others and spreading love to everyone (even our animals) will essentially impact our country in a positive way!

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