Canadian taxpayers have until the end of the year to make a charitable donation that qualifies for the first-time donor’s super credit for the current tax year.
The super credit, which was introduced in 2013, increases the value of the charitable donation tax credit by 25% for eligible first-time donors. Individuals eligible for the super credit can get a one-time 40% federal tax credit for monetary donations of $200 or less, and a 54% federal tax credit for the portion of donations that are over $200, up to a maximum of $1,000.
Taxpayers qualify as first-time donors if neither they, nor their spouse or common-law partner, has claimed a charitable donation tax credit for any year after 2007. The donor super credit applies to monetary donations made after March 20, 2013, up to a maximum of $1,000, and can only be claimed once between 2013 and 2017.
The Canada Revenue Agency (CRA) reports that, as of July, more than 95,000 individual taxpayers have claimed over $20 million in charitable donations under the first-time donor’s super credit.
Minister of National Revenue, Kerry-Lynne Findlay, called on Canadians to take advantage of the tax credit and to boost their charitable giving. She also recommends researching a charity before donating, as only registered charities and other qualified donees can issue official donation tax receipts.
“We want to continue to foster Canada’s culture of giving and to encourage everyone to donate generously to charities that do so much good in our communities,” Findlay said.