Charitable donations in Canada give you a non-refundable tax credit, not a deduction. A credit directly reduces your tax, while a deduction reduces your taxable income. The first $200 of annual donations qualifies for a 14% federal credit. Everything above $200 qualifies for a 29% credit - or 33% if your income is in the top tax bracket. You don't have to claim donations in the year you make them. You can carry forward donations for up to five years. Spouses can combine their donations and have one person claim the total. The charity must be registered with CRA and issue an official donation receipt. Donations of publicly traded securities are especially tax-efficient. CRA requires official donation receipts. Keep them for at least six years.