Canada Revenue Agency and donations – Remember that donations to registered charities provide tax refunds of 75% on the first $200 and 50% on amounts above $200.
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For example, a donation of $1000 to MWUC creates a tax credit of $550: 75% of $200 = $150 + 50% of $800 = $400)

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Tax credits are applied dollar for dollar against tax owing, so for many families, the example above would reduce their tax bill by $450.

 

This means a donation of $1000 to MWUC would cost the donor only $550 after tax.

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Limitations

1. Up to 75% of a taxpayer’s net income can be claimed as donations, except in the year of death or the year preceding death, when 100% of net income can be claimed as donations. 

2. The tax owing in the year of donation cannot be reduced below $0

3. You can carry donations forward for 5 years

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Charities play an important role in our society and provide valuable services — including to the most vulnerable.

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That is why the governments of Alberta and Canada supports charities through tax privileges, such as their ability to issue official donation receipts, and the ability of taxpayers to claim a charitable donations tax credit.