Chapter 3: Introducing Amy
The Donation Tax Credit
In order to claim the donation on her annual tax return, Amy will require the charitable donation tax receipt issued to her by the charity.
Donation tax credits vary by province or territory. To understand how they are calculated, consider our other eLearning module on Understanding the Donation Tax Credit (module will open in a new window).
The bottom line? Whether she donates cash from savings or donates appreciated securities, her $5,000 donation will result in a $2,238.52 tax credit.
Additional Learning
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Canada Revenue Agency publishes this information for all jurisdictions on their website. You can access it here.
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No. Charitable donations can be carried forward up to five years and used to offset future tax liabilities. Work with your accountant to determine the ideal strategy for you.
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You can donate as much as you want. However, you can only claim charitable donation tax credits in an amount up to 75 per cent of your annual net income. So, if your annual net income is $150,000 you can claim a maximum of $112,500 in charitable donation in that specific year. (In Quebec, you can claim 100 per cent of your annual net income.)
