A friend asks you to buy a seat at a charitable fundraising
dinner. Your colleague asks you to sponsor her walk for charity.
The mail is full of appeals for your support. How do you make the
most of giving back to the community?
Consider these tax tips to make sure you get the best tax
benefits for your gift. In order to obtain a tax receipt, the
organization must be registered with the Canada Revenue Agency
(CRA). Ask about the charity's registration number and ensure
that it's printed on your tax receipt. If in doubt, look up the
charity on the CRA website at:
www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html.
Tax credit structure
The first $200 of your donations generate a tax credit at the
lowest tax bracket (20% in Ontario), and anything above that amount
qualifies for a tax credit at the highest bracket (46% in Ontario).
With certain exceptions, donation claims are limited to 75% of your
net income.
