How to Maximize your Charitable Donation

How to Maximize your Charitable Donation

Did you know?

When you make a donation to a qualified registered charity, the government gives you a tax credit.

3 Tips to Maximize your Donation:

• Carry forward your donation receipts - Revenue Canada allows you to save and accumulate donation receipts up to 5 years. In the future, if in a higher tax bracket it could be    advantageous to apply the tax credit at that time.
• Pooling donation receipts - Combine donation receipts with your spouse (c/l). Apply the tax credit to the spouse (c/l) in the higher tax bracket, reducing taxes paid as a household
• Donating shares in-kind versus in-cash - In a non registered account, selling shares of a publicly traded company that has increased in value will trigger capital gains tax. By donating shares to a qualified registered charity in-kind (instead of in-cash) there is no capital gains tax on the disposition.

Based on your specific situation, your accountant can advise and help calculate your tax credit