Charitable Donations: How It Works

When you donate to a registered charity in Canada, you may be able to claim a federal tax credit. The credit has two tiers: a lower rate on the first $200 of donations, and a higher rate on donations above $200. Donations must be made to a registered charity recognized by CRA. You can verify if an organization is registered using CRA's charity search tool. You need an official donation receipt from the charity. The receipt must include the charity's registration number, your name and address, the date, and the eligible amount. If it is more tax-efficient, you can carry forward unclaimed donation receipts for up to five years. You and your spouse or common-law partner can combine your charitable donations on one return - often more tax-efficient to claim on the higher-income partner's return.