tax_formThere is still time to use the first-time donor’s super-credit, if you have not already done so! This measure, enacted by the federal budget delivered on March 21, 2013, aims to encourage donations to registered Canadian charities. A first-time donor is entitled to an additional 25% federal charitable tax credit on donations of up to $1,000 made after March 20, 2013.

A donor who donates $1,000 to a registered Canadian charity but does not qualify as a first-time donor would receive a federal tax credit of $262 on that donation, as follows:
• 15% on the first $200, or $30
• 29% on the remaining $800, or $232
• Total federal tax credit of $262

A donor who makes the same donation but does qualify as a first-time donor would receive a federal tax credit of $512 on that donation, as follows:
• 15% on the first $200, or $30
• 29% on the remaining $800, or $262
• 25% on the entire $1,000, or $250
• Total federal tax credit of $512

For the purposes 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) has claimed and been allowed a charitable donations tax credit for any year after 2007. 

This is a temporary credit, which can be claimed once between the 2013 and 2017 taxation years. If you have not ever made a charitable donation, or haven’t made a donation in the last five years, you still have time to access this tax advantage!