Several important changes in the tax rules that apply to
charitable gifts will be coming into effect in the near future.
Some of the new rules take effect in 2016, and others will apply
beginning in 2017. The new rules provide increased flexibility and
tax benefits for certain charitable donations, but the new rules
will require existing plans for charitable donations on death to be
reviewed, to ensure the plans comply with the new rules. This
update provides a refresher on the current tax rules, and explains
the upcoming rule changes.
Existing Rules
Individuals receive a non-refundable federal and provincial tax
credit for donations to Canadian registered charities. The combined
federal and provincial credit on donations over $200 per year is as
high as 50% of the donated amount (depending on the province the
donor resides in). A lower credit applies to the first $200 of
donations per year. The tax credit is capped at 75% of the
individual's net income for the
