Have you been thinking about giving money to a registered charity for the first time?
In an attempt to increase the amount of giving taking place in Canada, the federal government has introduced a new, temporary ‘super credit’. It’s called the First Time Donor’s Super Credit. If you haven’t made a charitable contribution in the last 5 years, you qualify.
It works like this:
Without the super credit, if you make a contribution to a registered charity, the credit is 15% of the first $200 and 29% of any amount above $200, up to 75% of your net income.
With the super credit, which is available until 2017, an extra 25% is added to the credit. This means that you would get a credit of 40% on the first $200 and 54% above $200, up to a donated maximum of $1,000.
The credit is non-refundable, so it is only of benefit if you would otherwise have taxes owing.