Charitable Donations /  19

Notes

(1)  Charitable donations entitle individuals to a two-tier non-refundable tax credit calculated 

using one rate for donations of up to $200, and another tax rate for donations exceeding 

$200 (see the table “Federal and Provincial Non-Refundable Tax Credit Rates and Amounts 

for 2013”). Eligible donations can be claimed for donations made by the taxpayer or his/her 

spouse that are supported by official receipts that reflect the recipient charity’s registration 

number.

(2) Generally, the maximum amount of charitable donations that can be claimed in a year is 

75% of an individual’s net income. However, this restriction may be adjusted or removed 

depending on the type of property being donated.

(3) Donating property may result in a taxable capital gain to the donor. Generally, 50% of capital 

gains are included in taxable income. However, the inclusion rate for capital gains realized 

on donated property may be adjusted depending on the type of property being donated.

(4) All donations made to registered Canadian charities and other qualified donees during an 

individual’s lifetime will earn non-refundable credits at the rates shown in the table (see note 

(1)). Credits are subject to a net income restriction (see note (2)), but unused credits may be 

carried forward for five years.

(5) The 2013 federal budget proposed a new temporary charitable donor’s super credit to 

supplement the existing charitable donation tax credit. A first-time donor would be entitled 

to a one-time 40% federal credit for money donations of $200 or less, and a 54% federal 

credit for donations between $200 and $1,000. An individual would be considered a first-

time donor if neither the individual nor the individual’s spouse or common-law partner had 

claimed the charitable donations tax credit or first-time donor’s super credit in any taxation 

year after 2007.  This one-time credit would apply to donations made on or after March 21, 

2013 and before 2018. 

(6) In Ontario, the top tax rate of 13.16% does not apply to donations in excess of $200.  

Donations over $200 earn a tax credit at a rate of 11.16%.

New Brunswick’s tax credit rate for donations over $200 is 17.95% but the legislation has 

not yet been amended to reflect this rate.

(7)  These donations include those made to the Government of Canada, a province or a territory, 

but do not include contributions to political parties. 

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Current as of May 3, 2013