Donations

Donation revenue is the lifeblood of charitable organizations. Thousands of organizations rely on the generosity of donors to sustain their charitable activities.

Donations to registered Canadian charities are eligible for a tax credit on an individual's income tax return or may be claimed as a deduction by a corporation.

For individuals, the Federal donation credit is 16% on the first $200 and 29% thereafter. The true tax savings must include the provincial tax component. In BC the savings levels are 22.05% and 43.7%.

With this preferential tax credit system, donors in lower income brackets receive extra tax savings. Income might be taxed, for example, at the marginal rate of 31.15% (middle bracket rate in BC), but the donation credit is at 43.7%.

Donation of publicly traded securities can provide even more favourable tax results where the security has an unrealized gain to the donor.