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New super-credit for charitable donations

collection plate As part of the government’s Economic Action Plan 2013, the new First-time Donor’s Super Credit (FDSC) was announced.  If neither you nor your spouse has claimed a tax credit for a charitable donation since 2007, you are eligible for this credit in any ONE tax year between 2013-2017.

The FDSC will increase the donation tax credit by 25 percentage points, up to a maximum of $1,000 of donations.


So, if you make a $1,000 donation and are eligible for the FDSC, here is what your Federal tax credit will be:

First $200 of donations get a credit at 15%:  200 x 0.15 = $30

Donations in excess of $200 get a credit at 29%:  (1,000-200) x 0.29 = 232

FDSC:  1,000 x 0.25 = 250

Total Federal tax credit for $1,000 donation:  $512

Add to that the provincial tax credit, which varies by province.  The lowest provincial tax credit on a $1,000 donation is in Ontario at $99.38.  The highest is in Québec at $232 (see details for your province at

Grand total of tax credit on a $1,000 donation will be between $611.38 and $744, depending on which province you live in.  This credit is very generous, so take advantage of it!

What if you’re not eligible for the FDSC?

If you aren’t eligible, that means you’ve claimed a tax credit for a donation within the last 5 years.  On behalf of those who benefited from your generosity, thank you!  Just think of how many of the world’s problems could be solved if we all just gave a little bit.

Your tax credit on a donation of $1,000 looks like this:

First $200 of donations get a credit at 15%:  200 x 0.15 = $30

Donations in excess of $200 get a credit at 29%:  (1,000-200) x 0.29 = 232

Plus provincial credit between $99.38 and $232 as noted in previous paragraph.

Grand total:  $361.38-$494 depending on which province you live in

Not as generous as with the FDSC, but still something.

Does the FDSC make sense?

Overall, I find this credit troubling.  Its aim to encourage young Canadians entering the work force to donate to charity makes sense.  If they are introduced to the tax benefits early on in their careers and catch on to the philanthropic sentiment, then that’s definitely a good thing and I support it!

The part that I have trouble reconciling in my mind is that it in effect rewards behaviour that we don’t want to encourage for those who are not just entering the work force.  Do we not want Canadians to give to charity consistently year after year?  Then why are we rewarding only those who haven’t?  It doesn’t make sense to me.  However, I suppose I’m willing to swallow that inconsistency for the sake of getting more dollars into the charitable sector.

There are so many wonderful Canadian charities accomplishing great things.  What’s your favourite charity? 



October 13, 2013

1 responses on "New super-credit for charitable donations"

  1. This is good news I think…
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