Tax Deductible Charitable Donations

Canada has a generous tax credit system for charitable donors. If you make charitable contributions to a registered charity, the federal government of Canada lets you claim non-refundable charitable tax credits. This means that when you make a donation, you’ll receive a certain percentage of your donation as a tax refund. The maximum donation credit you can claim is 75% of your net income for the year.

Remember To Report The Donation

You need to report your charitable donations and claim your tax credits when you file your income tax return.

If you file your tax return electronically, ensure you keep the official donation receipts from the registered public charities for five years. For paper tax returns, ensure you have your completed Schedule 9. In this case, you won’t need to send your official donation receipts but still ensure that you have them.

Know The Charitable Tax Credit Rate In Canada

You can claim amounts of gifts to a limit of 75% of your net income. For gifts of certified cultural property or ecologically sensitive land, you can claim up to 100% of your net income.

Once you have determined the amount, use the Charitable donation tax credit rates table to calculate your charitable tax credit.

Be Mindful Of How and To Whom You Donate

Before donating, remember to ask the charity for its registration number and confirm its part of the stipulated list of charities. Or phone the Charities Directorate at 1-800-267-2384 to confirm the credibility of the nonprofit organization before making a donation.

If a charity asks for an online donation, ensure you read the organization’s privacy policy and make sure the website is secure. Also, watch out for donation programmes that say they’ll make profit for you – they could be potential tax shelter schemes.

If you want to learn more about how you can better manage your finances and investments, visit the Nour Private Wealth website.

We offer investment planning services, wealth management services, group finance services, insurance services, and more.

Contact us today to learn more about tax deductible charitable donations. 

Insurance products and services are offered through Nour Insurance Services Inc., a related and separate company from Nour Private Wealth Inc. Only products and services offered through Nour Private Wealth Inc. are covered by the Canadian Investor Protection Fund.

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