Cross-Border Giving Considerations

There are a variety of non-tax and tax reasons to support charities. When deciding which charities to benefit, many Canadians have philanthropic objectives that extend beyond the border.

First, it's important to understand the Canadian tax benefits of charitable giving. Under Canadian tax rules, a donor may claim tax credits for total gifts in a year up to 75% of his or her net income, subject to exceptions for gifts of certified cultural property or ecologically sensitive land (a donor may be able to claim up to 100%). The limit for using the charitable donation tax credit is increased from 75% to 100% of net income in the year of death. These charitable deductions apply when gifts are made to a "qualified donee" under the Income Tax Act, which include for the most part Canadian registered charities.