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Five Things to Know about Donations and Taxes

Posted April 28th, 2017

Every year Calgarians donate money to charities to support the causes they most dear to them. Many others donate for the generous provincial and federal tax incentives available for those who donate to charities. Tax season is coming to close, and we want to ensure all of our donors and supporters know about the tax benefits of giving. As well, we want to help any individuals who are considering making a donation for the first time aware of the credit available to them if they do decide to donate. Kory Wickenhauser Senior Manager at PwC and a member of our Community Engagement and Fundraising Committee was generous enough to provide some tips, here are five things to know:

  1. You are eligible to claim tax credits for donations up to 75% of your net income for the year — and up to 100 per cent in the year of death.
  2. Charitable donations are eligible for both federal and provincial tax credits.
  3. The federal credit is the same across the board, but the provincial credit varies depending on where in the country you file your tax return. In Alberta, for example, those who make donations of less than $200, get a provincial credit equal to 10% of the donation amount. The rates go up once your donation exceeds $200 — to 21% in Alberta.
  4. Credits are deducted from the amount of tax you owe and can be delayed and claimed in any of the five years following the one in which you donated.
  5. There is a First-Time Donor’s Super Credit (FDSC) that supplements the value of the Charitable Donations Tax Credit (CDTC) by 25% on donations made after March 20, 2013, by a first-time donor. For the purpose of the FDSC, you will be considered a first-time donor if neither you nor your spouse or common-law partner (if you have one) have claimed and been allowed a charitable donations tax credit for any year after 2007.

    An eligible first-time donor claims $700 of charitable donations in 2016, of which $300 are donations of money. The CDTC and the FDSC would be calculated as follows:

  • On the first $200 of charitable donations claimed, the CDTC is ($200 x 15%) = $30.
  • On the donations claimed in excess of $200, the CDTC is [($700 – $200) x 29%] = $145.
  • On the donations that are gifts of money, the FDSC is ($300 x 25%) = $75.
  • The total of the CDTC and FDSC is $250.

You have until the end of April to file your taxes. If you have already done so, we encourage you to keep these tips in mind when you’re financially planning for next year.

If you’re interested in making a donation to the Calgary Homeless Foundation please visit this link. Our Fund Development team works hard to ensure all of our donors have what they need to receive all of their tax credits. Choosing to donate to a charity has a ripple effect of benefits, for you, the agency and the cause that the agency is working to support. So, include a donation (of any size) for the next fiscal year, you’ll be surprised at the great incentives that come back to you for doing a good deed!


We would like to thank Kory Wickenhauser for his assistance in this blog post!


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