This information helps donors make better decisions about their charitable giving. We'll be looking at how to choose the right charity, understanding administrative and fundraising expenses, how much to give, and more. Every 2 weeks, you'll receive a new set of tips and information to make your giving easier and have more impact.
Understanding Charitable Tax Credits
Not only is giving to charity a great act of generosity and support, it helps Canadians claim a credit on our taxes as well. Many people don't understand exactly what the credit is or how it works for them.
There is both a federal and a provincial charitable tax credit that you can claim. The federal tax credit is the same for all Canadians and breaks down as follows:
The tax credit on your first $200 in donations is 15%
Any amount donated above $200 is eligible for a 29% tax credit
If you made a donation of $500 and wanted to claim the tax credit, you would be able to claim:
15% of the first $200 = $30
29% of the remaining $300 = $87
That represents a $117 savings on your taxes! Of course, the more you give, the more you're able to save. To find out the provincial tax credits you are also eligible to receive on top of the federal amount, visit the Tax Credit Table on the Canada Revenue Agency (CRA) website.
Did You Know?
Donations must be made by December 31st in order to be claimed on that year's taxes.
To claim a donation on your taxes, you must donate to a registered Canadian charity. To make sure your organization is registered, visit the CRA website: www.cra-arc.gc.ca/charities/
You and your spouse (or common law partner) can claim donations made by the other to maximize the tax benefit.
Donating appreciated securities (stocks or mutual funds) is the most tax effective way to give. You pay no capital gains tax and you get the charitable tax credit.
You can claim unused charitable donations on your taxes for up to 5 years. If you've given less than $200 one year, you might want to claim that donation in a year when it will maximize the amount you can claim.
Donate today at www.canadahelps.org!
Knights of Columbus
http://www.canadahelps.org/GivingPages/GivingPage.aspx?gpID=7162
http://www.canadahelps.org/GivingPages/GivingPage.aspx?gpID=7101
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