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Charitable Donations
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 2014”). 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) For taxation years that begin after 2012 a temporary charitable donor’s super credit
supplements the existing charitable donation tax credit. A first-time donor is 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 is considered a first-time
donor if neither the individual nor the individual’s spouse or common-law partner has
claimed the charitable donations tax credit or first-time donor’s super credit in any taxation
year after 2007. This one-time credit applies to donations made on or after March 21, 2013
and before 2018.
(6) Quebec announced in Information Bulletin 2013-6 a new 25% non-refundable tax credit
(up to $6,250) on certain initial large cultural donations by individuals (other than trusts)
made before January 1, 2018. The Information Bulletin also announced a new 30%
non-refundable tax credit for certain large donors who give cultural organizations $250,000
or more. The bulletin announced other measures for individuals and corporations on
donations of public artwork intended for installation in certain accessible or educational
spaces and donations of buildings capable of housing artists’ studios.
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