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Donations to qualified Canadian organizations qualify for a non-refundable tax credit. The tax credit can be used to reduce your tax payable and, generally, you can get a credit for all donations to qualified Canadian organizations, up to 75% of your net income. In the year of death (and going back one year), the limit is 100% of net income. Gifts and donations can include money, cultural and ecological gifts, and capital property (land, stocks, bonds, cottages, and more).
Qualified Canadian organizations include:
- Registered charities;
- Registered Canadian amateur athletic associations;
- Registered national arts service organizations; or
- Registered housing corporations resident in Canada set up only to provide low-cost housing for the aged.
A qualified Canadian organization must be one that can issue official donation receipts for donations and gifts received.
If you are a first-time donor, you may be entitled to a First-time donor’s super credit (FDSC) which supplements the donations tax credit by 25% on donations after March 20, 2013. Click this link for more information on claiming the FDSC.
If you do not want to claim all of the donations you made in this year on your current year’s tax return, you can carry them forward for any of the next five years. We recommend carrying forward your donations amounts if it is more beneficial for you to claim them in a future year.
If you have donated to a qualified Canadian organization and want to claim a tax credit for the amount gifted, you must complete Schedule 9: Donations and Gifts. If you are a resident of Québec and want to claim a tax credit for donations and gifts made in the year, complete either Work chart 395 or Schedule V: Tax Credits for Donations and Gifts.
Note: You must have a receipt from the organization that shows the qualified organization’s name and registration number, date, serial number, amount of donation, your name, the signature of an individual who has been authorized by the charity , and the Canada Revenue Agency’s website address on it. You may also have donated through your employer or company program and those donations are shown on your information slip (for example, a T4, T4A, or RL-1 slip).
- Schedule 9 (H&R Block Help Centre article)
- Schedule 9: Donations and Gifts (CRA website)
- Tax Credits for Donations and Gifts (Revenu Québec website)
- Schedule V: Tax Credits for Donations and Gifts (Revenu Québec website)