All About Charitable Donations and Your Taxes

Canadians are known for their generosity, with donations reaching around $10.6 billion every year. On average, each Canadian gives about $340 to their favorite charities. If you’re among these generous folks, you’ll be happy to hear that donations over $200 can get you a tax credit of up to 54%, depending on where you live and how much you earn.

Do All Charities Count for the Tax Credit?

Before you donate, make sure the charity is registered with the Canada Revenue Agency (CRA). Only donations to approved charities will count for the tax credit. These organizations will give you an official receipt with their registration number.

Apart from regular charities, your donation to certain other groups can also give you a tax break. This includes:

Canadian amateur sports organizations
Registered journalism groups
Some foreign charities that Canada supports
Groups providing affordable housing for seniors
Government bodies in Canada
Canadian municipalities
Approved foreign universities

What if the Charity Loses its Registration?

Don’t worry if a charity loses its registration after you’ve donated. If they were registered when you made your donation and you have the receipt, you’re still good for the tax credit. Check

Can Everyone Claim This Tax Credit?

Yes, any Canadian with an official donation receipt can claim the credit. Just remember, charities aren’t required to issue receipts for donations under $20.

Do Charities Tell the CRA About My Donations?

When it comes to charity tax breaks, you can claim up to 75% of your net income. For generous donations, like to cultural or eco-friendly causes, you might be able to claim up to 100% of your income.

How Much Will I Get Back?

The federal government gives you a 15% credit for the first $200 donated, and either 29% or 33% for amounts over that, depending on your income. Each province and territory has its own rates, which you can see in the table below:

Province	Donations $200 or less	Donations over $200
Alberta	75%	50-54%
British Columbia	20.06%	45.8-49.8%
Manitoba	25.8%	46.4-50.4%
New Brunswick	24.4%	46.95-50.95%
Newfoundland & Labrador	23.7%	50.8-54.8%
Nova Scotia	23.79%	50-54%
Northwest Territories	20.9%	43.05-47.05%
Nunavut	19%	40.5-44.5%
Ontario	20.05%	40.16-44.16%
Prince Edward Island	24.8%	45.7-49.7%
Saskatchewan	25.5%	43.5-47.5%
Yukon	21.4%	41.8-45.8%

What’s the Deal with the Tax Credit?

The charitable donations tax credit is non-refundable, meaning it reduces the tax you owe rather than giving you a cash refund.

Do I Have to Claim My Donation Right Away?

Nope, you can claim unclaimed donations from the last five years.

What Do I Need to Claim This Credit?

You’ll need the official donation receipt with your name on it. Keep these receipts for five years in case the CRA wants to check.

Can I Claim Volunteer Hours?

No, the tax credit only applies to money or certain gifts, not your time.

What Tax Form Do I Use?

You’ll use the Schedule 9 section of your federal tax form, with federal credits on Line 34900 of the T1 form and provincial credits on Line 58969 of the Form 428.

Orientum Group Pro Tip:

Consider saving up your donations and claiming them all at once every five years. This way, you’ll get more back because the first $200 has a lower tax credit rate. For couples, pooling your donations can also lead to a bigger refund.

Orientum Group is ready to help you get the most out of your charitable giving.