Supersize Your Donation With the First-Time Donor’s Super Credit

  • donation super credit

It is commonly agreed that giving is a good thing.  The Canadian government is endorsing this giving model by continually rewarding charitable taxpayers with valuable tax incentives.  In 2013 the federal government introduced the First-Time Donor’s Super Credit (FDSC).

As the name implies, the credit is only available to first-time charitable donors.  You are deemed a first-time donor if neither you nor your spouse or common-law partner has made any charitable donation claims since 2007.  Aimed at encouraging new donors to give to charities, this supplemental credit increases the value of your federal charitable tax credit by 25{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5}.

The same basic donation rules apply to the First-Time Donor’s Super Credit.  In order for the amounts to be eligible, donations must be made to registered Canadian charities or qualified donees.  If they are not on the Canada Revenue Agency’s Charities Listings the donations are not eligible for the credit.

donation super credit

This supplemental credit increases the value of your federal charitable tax credit by up to 25{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5}.

There are, however, some limitations to the credit.  The First-Time Donor’s Super Credit can not be claimed on donations of certified cultural property, capital property, publicly traded securities, or ecologically sensitive land.  Unlike the basic Charitable Donation Tax Credit (CDTC), the super credit can only be applied to gifts of money and amounts up to a maximum $1,000.   Any amount above $1,000 is not eligible for the FDSC.  In addition, you can only access the credit once.  This one off must be claimed between the years of 2013 – 2017.  If you miss it, you lose it.

Finally, while you are allowed to carry forward regular charitable donations to future years with the CDTC, the FDSC can only be claimed in the same year the donation was made.  In other words, you can not carry forward the unused amount. However, the FDSC does allow you to share the amount with your spouse or common-law partner.  Whether you choose to share the FDSC with your spouse or common-law partner, the maximum eligible contribution can not exceed $1,000.

If you would like to learn more about the First-Time Donor’s Super Credit, or other credits and deductions that can help you and your family, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.


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