Give to Charity, Not to Taxes
Significant tax benefits for people donating to charities were introduced into the March 1997 federal budget in Canada.
General Donations
Donors may claim charitable donations of up to 75% of their annual net income (up from 50%). Donations larger than this may be carried forward for 5 years.
Bequests
A donor's estate may claim charitable donations of up to 100% on the net income in the year of the donor's death and the preceding year. If the donor's income was $50,000 in both the year of death and the preceding year, the estate may claim up to $100,000 in charitable gifts, virtually eliminating income taxes on those years' income tax returns.
Gifts of Appreciated Property
For gifts of appreciated publicly traded securities made to charities other than private foundations, the taxable portion of the capital gain has been reduced from 75% to 37.5%, and the donation limit has been increased to 25% in respect to the capital gain arising as a result of the gift. The charitable tax receipt will more than cancel the capital gains, effectively reducing taxes arising from other income.
For more information, please contact Epilepsy Ontario or your local Revenue Canada Office.
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