Incentive to donate!
The temporary First-Time Donor Tax Credit adds 25% to the rates used to calculate the non-refundable tax credits of up to $1,000 in monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.
For example, a $500 donation will receive a total tax credit, including federal and provincial credits, of $286. That’s $125 higher than the current credit.
Donations made after March 20, 2013 will qualify as an eligible donation. To qualify as a first-time donor, the individual, nor the individual’s spouse, cannot have claimed donations in any of the 5 preceding tax years. This temporary credit is in effect from 2013-2017 and can only be claimed once.
