Hero Animation
Hero Image

Are Charitable Donations Tax Deductible in Canada?

Are Charitable Donations Tax Deductible in Canada?

A person on a laptop donating online to a charity which is tax deductible in Canada.

Donating to a charity or nonprofit can be a rewarding experience in more ways than one. It feels good to know that your money is going towards a good cause, but it can also help reduce your tax burden. That’s right! In Canada, charitable donations are tax-deductible

Learning how charitable donation tax credits work can help you make the most of your contribution, and get an additional reward for giving back to your community.

At Distress Centre, we appreciate all forms of donation—no matter how large or small. Every bit helps, so check out what the rules are when it comes to making charitable donations and associated tax benefits.

What Is a Charitable Donation Tax Credit?

A charitable donation tax credit is a credit that is applied to your taxes for the year in which you made the donation. When you make a personal donation to a charitable organization, you can receive a tax receipt. This receipt will contain the amount of your donation, the charity’s name, and its registration number. You can use this tax receipt to claim your charitable donation tax credit on your tax return. 

How Much of a Tax Credit Can You Receive?

The amount of your tax credit will depend on the amount of your donation. Generally, for the first $200 you donate, you will receive a federal tax credit of 15%. For donations over $200, the federal tax credit rate increases to 29%. 

On top of the federal tax credit, you may also be eligible for a provincial tax credit, depending on where you live. In Alberta, for example, the provincial tax credit is 10%.

Tax Receipt Exceptions

Not all donations made to charities are eligible for tax receipts. Some organizations have specific requirements for issuing receipts, while others may not issue them at all. To ensure you can claim your donation on your tax return, it’s a good idea to check with the charity beforehand and find out if there are any exceptions or conditions to be aware of.

Keep in mind that funds collected on behalf of a group cannot be claimed by a single person or corporation. Each person who contributed a monetary donation can receive a tax receipt for the funds they personally donated. You can also receive a tax credit for gifts-in-kind (non-monetary donations) based on the fair market value of the gift.  

Which Charities Qualify?

Donating to registered charities such as non-profit organizations, foundations, and certain religious organizations can make you eligible for a tax credit. These organizations have to meet the criteria set by the CRA to be considered qualified donees.

Looking to donate to Distress Centre? We are a registered charity.

How to Claim Your Charitable Donation Tax Credit

To claim your tax credit, you will need to claim it on federal and provincial tax returns and include your tax receipt. You can claim donations up to a maximum of 75% of your net income for the year. If you’re unable to claim your donation in the current year, you can carry your donation forward for up to 5 years. To ensure that you’re claiming your donation correctly, you may want to consult a tax professional.

A hand putting a coin into a jar labelled "donation" full of other coins.

Why Should You Donate to a Charity?

Donating to a charity can be a rewarding experience for a number of reasons. It allows you to support a cause or organization that you believe in. At Distress Centre, for example, your donation can help fund crisis lines, which provide support to individuals who are experiencing emotional distress. By giving back, you’re joining a movement of people who want to make the world a better place. It’s inspiring to see others come together for the greater good.

Recurring Donations

If you’re looking for a way to make a lasting impact through your donations, setting up a monthly contribution to an organization like Distress Centre can make a big impact. 

Your consistent support allows us to provide vital mental health and wellness support to you, your family, and your neighbors whenever it’s needed. By choosing to give on a monthly basis, you can help us generate a meaningful difference that lasts all year long. 

Join us in making a real difference by becoming a monthly donor to Distress Centre.

Other Ways to Give

If you’re passionate about a cause and want to make a difference beyond monetary donations, there are other impactful ways to get involved. You can make an impact through gift of securities donations, estate planning or legacy gifts, in-kind or sponsorship opportunities, or giving your time or expertise. 

Volunteering your time can be just as valuable in supporting organizations and causes that matter to you. Organizations like Distress Centre rely on dedicated volunteers to provide support and assistance to individuals in crisis. By offering your time and skills, you can directly contribute to a mission you care about. Beyond the benefit to others, volunteering can be an incredibly rewarding experience that can teach you valuable new skills and enrich your life with a sense of purpose. 

Get Rewarded for Giving

Donating to a charitable cause can be a great way to give back to your community and make an impact on a cause you believe in with the added benefit of reducing your tax burden.

If you’re interested in donating to a charitable organization, Distress Centre is a fantastic choice. With your donation, you can help to support our crisis lines and other services that provide support to individuals in need. If you have any questions about how to donate, reach out to the Distress Centre team today.

In the spirit of respect, reciprocity and truth, Distress Centre Calgary would like to honour and acknowledge Moh’kinsstis, and the traditional Treaty 7 territory and oral practices of the Blackfoot confederacy: Siksika, Kainai, Piikani, as well as the Îyâxe Nakoda and Tsuut’ina nations. We acknowledge that this territory is home to the Métis Nation of Alberta, Region 3 within the historical Northwest Métis homeland. Finally, we acknowledge all Nations – Indigenous and non – who live, work and play on this land, and who honour and celebrate this territory.