Every year, we like to update our clients on the various tax credits & opportunities available when donating to charity during the holidays. This will also apply to donations throughout the year.
CRA has a variety of useful tools on their website: CRA LINK HERE
Here you will be able to calculate your charitable tax credits, get information regarding applicable non-profits & charities, what documents are needed to claim your charitable tax credits, and more.
There is also a helpful charitable tax credit calculator, which can be used to get a general sense of the tax credit you would be eligible for. Tax Credit Calculator
The charitable tax credit is available for anyone who makes a donation to an approved charity or non-profit organization. Your donation can be money, property, stocks, gifts, etc. For example, some of our clients have offered a week stay at their airbnb rental property, a pedicure from their salon, or a gift basket of their coffee for a charity auction. Determining the value of the goods or services donated, and having a record of it, is very important should you get audited. This is considered an “in kind” donation.
If you have any questions about charitable tax credits, please let us know. There are many specifics with donations that we can help with.