Charitable giving is making a gift to a charitable organization in a way that maximizes your tax and estate planning benefits. A gift may be a one-time donation, a series of payments over a set period, or ongoing support. It may be a gift the charity can use now or a “deferred gift ” available to the charity in the future.
You have many choices when it comes to making a charitable gift. To learn about your options, the tax benefits and other considerations, take a moment to review the following frequently asked questions:
A charitable gift is a voluntary transfer of money or property for which you expect and receive nothing of value in return. Gifts can include:
Certain donations are not considered gifts for tax purposes:
With minimal planning, tax savings can fund close to 50% of your gift in some provinces.
There is a 16% federal tax credit on the first $200 donated each year. Amounts over this threshold earn the maximum 29% federal tax credit. Your tax savings are then increased by reduced provincial taxes.
Yes. Generally, each year you can claim credit for donations not exceeding 75% of the “net income” reported on your federal tax return. For donations of ecologically sensitive land and Canadian cultural property, the limitation is 100% of your net income for the year.
The following includes some of the gift options mentioned previously, as well as additional methods appropriate for unique circumstances and large or ongoing gifts:
Most charitable gifts that qualify for tax credits are one-way transactions. You cannot take back the donation. Before making a large commitment, make sure you will have enough money to meet your future needs and those of your family.
Yes. RBC Dominion Securities offers a Charitable Gift Program for those who want to support charitable causes in a meaningful way, but don't have time to establish a private foundation or endowment fund. It is an easy, convenient way to support charitable causes, today and in the future, while receiving important tax benefits.