Category: Charity

Donations to Charity

The First-time donor’s super credit (FDSC) 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.

The FDSC applies to a gift of money made after March 20, 2013, up to a maximum of $1,000, in respect of only one taxation year from 2013 to 2017.

If you have a spouse or common-law partner, you can share the claim for the FDSC, but the total combined donations claimed cannot be more than $1,000.

 

This is a non-refundable tax credit. As such, it can only be used to reduce tax owed; if you don’t owe any tax, you don’t get a refund. Generally, your tax savings will be equal to the amount of the charitable tax credit calculated. The following are exceptions:

  • If you are a resident of Quebec and are entitled to a refundable federal tax abatement, then your actual federal tax savings will be reduced.
  • If you are required to pay provincial income surtax, then your actual saving will be more than the charitable tax credit calculated as the credit will reduce both your base income taxes and provincial surtax.
  • If you made a donation of publicly traded securities, you may increase your tax saving by reducing your capital gains tax.

For a quick estimate of your charitable tax credit for the current tax year, try out the Charitable donation tax credit calculator.

For more information about claiming your charitable donations, see the General Income Tax and Benefits Guide.

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Gifts from other registered charities

A registered charity should not issue official donation receipts for gifts (cash or gifts in kind) it receives from other registered charities nor should other registered charities insist on receiving official donation receipts. Official donation receipts that bear a charity’s registration number and other information are required for tax deduction or credit purposes only; registered charities do not pay income tax and, therefore, do not need a donation receipt.

A charity can acknowledge gifts received from other registered charities by way of a letter or ordinary receipt – one that does not state that it is an official receipt for income tax purposes.

The charity should still provide its registration number to donor charities for their reporting requirements.

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Important Change To Recordkeeping Requirements For Ontario Not-For-Profit Corporations That Own An Interest In Land In Ontario

Effective December 10, 2016, every newly incorporated Ontario not-for-profit corporation is required to keep a register of the land in Ontario in which it has an ownership interest. Ontario not-for-profit corporations incorporated prior to December 10, 2016 will have two years to comply with the requirement to maintain a register. The land register must identify each property over which the corporation owns an interest and must indicate the date the corporation acquired the interest and, if applicable, the date the corporation disposed of it.

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