Charitable Tax Receipt: A Professionals Guide to Giving

Thinking of donating in order to reduce your year-end income tax?

Take a look at this FAQ sheet created by our own Mike Matich, Chartered Accountant and long-time Coastal Jazz & Blues Board Member.

Why should I donate to Coastal Jazz and Blues Society?
Coastal Jazz and Blues Society offers special benefits to donors and promotes and presents the music you love.
PLUS, you can brag you are a philanthropist.

What do I get in return?

Federal tax credits
15% on the first $200
33% on whichever of the following amounts is less;
**The amount of the donation for the year above the first $200
**The amount of taxable income that is over $205,843
29% on the total donations for the year above the first $200, which are not eligible for the 33% rate above

BC tax credits
06% of the first $200
80% on the balance

Generally, you are limited to 75% of your net income. For unused amounts, you can carry them forward for 5 years.

What can I donate?
Cash is King.
Gifts in-kind. There are many non-monetary gifts that can be made but these need to be made at fair market value. Special rules apply to publicly traded stocks, ecologically sensitive land and certified Canadian cultural property. Publically traded stocks can have a significant advantage compared to cash. If for instance you donated stock worth $1,000 that you bought for a penny, you would get a credit for the $1,000 donation and you would not get taxed on the capital gain. Consider then, taking the tax savings and reinvesting the same stocks.

Deadline to donate?
The tax deadline is December 31 so don’t delay. You cannot carry them back.

What is the Super Credit?
If you have never donated before you may be able to claim an additional 25% on the first $1,000 you donate.

How can I calculate my potential credit?
Canada Revenue Agency has a charitable donation tax credit calculator for 2017 which will give you an idea of the credit you might obtain.

As always, you should consult with your tax advisor to ensure your particular circumstances align with your needs and applicable laws have not changed.

Thanks for considering a donation to Coastal Jazz and Blues Society! For further information about how to donate or about any of the other benefits you will receive for donating, please contact Tara Flynn, [email protected].