Traditionally the Federal Government gives taxpayers a non-refundable credit of 15% on the first $200 of charitable donations, and 29% on the remainder, subject to a limit of 75% of your Net Income.

Starting in the 2013 tax year and lasting until 2017, they will be offering a bonus credit of 25% on the first $1000 of donations for first-time donors. This results in a total credit of 40% on the first $200 of donations, 54% on the next $800, and 29% thereafter.

For the 2013 taxation year, an individual will be considered a first-time donor if neither the individual nor the individual’s spouse or common-law partner has claimed the Charitable Donations Tax Credit in any of the five preceding tax years. Only donations of money that are made after March 20, 2013 will qualify for the First-Time Donor’s Super Credit.

For more information, consult the CRA’s reference page for the First-Time Donor’s Super Credit here.

4 Responses to New Federal Credit, First-Time Donor’s Super Credit

  1. William Slater says:

    So long time donors can take a hike? On second thought I suppose it may get more people donating.

  2. While it’s definitely disappointing that the credit is only for what are considered “first-time donors”, it’s certainly a strong incentive for those who have overlooked the Donations credit in the past to consider giving to charity, especially with the economy where it is at present.

  3. On the other hand, perhaps folks are making donations but choosing not to claim them? Or they are making small $2 donations towards cancer, food bank, etc, tacked on to their grocery store bill. Those add up … but there is no way to claim them. Hmm, do the grocery stores get to claim they’ve made the donations?

  4. Derek Madge says:

    I suspect that most people who can afford to donate, have been and those who cannot afford to lay out money that is not going to rent, food, tuition etc., will still not be able to come up with enough of a first time donation to make an appreciable difference. It smells more like PR than policy.