How to Claim Charitable Donations on a Canadian Tax Return
Donating to charity helps people in need and supports causes you care about. It can also lower the amount of tax you owe to the government.
Many Canadians don't realize they can claim these donations on their tax return and miss out on valuable savings.
When you donate to a registered charity in Canada, you can claim a non-refundable tax credit that gives you back 15% on the first $200 you donate and 29% on amounts over $200.
Your province also offers additional credits, which means your total savings can be even higher. Understanding how to claim these donations ensures you get the full benefit you deserve.
This guide will walk you through everything you need to know about claiming charitable donations on your Canadian tax return.
You'll learn which donations qualify, what documents you need to keep, and how to maximize your tax savings while supporting causes that matter to you.
Eligibility Requirements for Claiming Charitable Donations
To claim charitable donations on your tax return in Canada, you need to donate to organizations that the CRA recognizes.
Your donations must meet certain requirements, and you can only claim amounts supported by official tax receipts.
Eligible Charitable Donations
You can claim eligible donations up to 75% of your net income on your tax return.
The federal government provides a non-refundable tax credit for donations you make to qualified organizations. This credit directly reduces the tax you owe.
At the federal level, you receive a 15% credit on the first $200 you donate. Any amount above $200 gets you a 29% credit.
If your taxable income exceeds $253,414 (for the 2025 tax year), amounts over $200 qualify for a 33% federal credit instead.
You must have an official donation receipt to claim any charitable donation. Keep these receipts with your tax records, as the CRA may ask to see them.
Qualified Donees and Registered Charities
The CRA maintains a list of organizations that can issue donation receipts. Registered charities are the most common type of qualified donee.
You can also donate to Canadian amateur athletic associations, Canadian municipalities, and the United Nations.
Other qualified donees include registered foreign charities that receive funds from the Canadian government. Low-cost housing corporations for the aged also qualify as organizations you can donate to for tax purposes.
You can search the CRA's online database to verify if an organization is registered.
Never assume an organization qualifies just because it seems charitable.
Types of Donations That Qualify
Both cash and property donations qualify for tax credits. Cash donations include money you give through cheques, credit cards, or online payments.
You can also claim the value of stocks, bonds, or other securities you donate.
Property donations might include items like artwork, real estate, or ecologically sensitive land. The CRA has special rules for these gifts.
If you donate ecologically sensitive land after February 10, 2014, you can carry forward the credit for up to 10 years instead of the usual 5 years.
Gifts you make throughout the year all count toward your donation limit. The CRA administratively expects you to claim carried-forward amounts from previous years before claiming current-year donations, though you have some discretion in which donations to claim.
Understanding Charitable Donation Tax Credits
When you donate to registered charities in Canada, you receive tax credits that reduce the amount of tax you owe.
These credits work at both federal and provincial levels, with rates that vary based on how much you donate.
What Is a Charitable Donation Tax Credit?
A charitable donation tax credit rewards you for giving money or property to registered Canadian charities. The credit reduces your tax bill based on a percentage of what you donate.
The federal government gives you back 15% on your first $200 in donations. Anything above $200 earns you 29% back.
If your taxable income exceeds $253,414 (for the 2025 tax year), donations over $200 qualify for 33% instead.
Provincial and territorial governments add their own credits on top of the federal amount. Combined, your total tax savings can reach up to 54% depending on where you live and how much you earn.
You can claim donations up to 75% of your net income for the year. If you don't use all your donation credits in one year, you can carry them forward for up to five years.
Non-Refundable Tax Credits Explained
The donation tax credit is a non-refundable tax credit. This means it can only reduce the tax you owe to zero—it won't create a refund.
If your tax bill is already at zero before claiming donations, you won't receive any additional money back.
You should claim other tax credits first to bring your tax payable down, then use your donation credits.
You can pool your donations with your spouse or common-law partner. One person can claim all the donations on their tax return, which often creates a larger total credit since more of the donations exceed the $200 threshold.
Federal and Provincial/Territorial Tax Credits
Your charitable donation tax credit includes two parts: federal and provincial or territorial credits.
Federal rates:
- 15% on the first $200
- 29% on amounts above $200
- 33% on amounts above $200 if your taxable income exceeds $253,414 (for the 2025 tax year)
Each province and territory sets its own donation tax credit rates. These stack with federal credits to determine your total savings.
Higher-income provinces like Quebec and Nova Scotia offer combined rates that can exceed 50% on larger donations.
The tax credit rates apply when you claim the donation, not when you made it.
If you carry forward donations from previous years, they use the current year's rates when claimed.
Required Documentation and Receipts
You need an official donation receipt from a registered charity to claim any charitable donation tax credit in Canada.
The Canada Revenue Agency requires proper documentation for all donation claims, and you cannot claim any amount without the correct receipt.
Official Donation Receipts
You must obtain an official donation receipt from a registered charity or qualified donee to claim your charitable donations.
The receipt needs to state "Official receipt for income tax purposes" on it.
The charity can issue paper or electronic receipts. Electronic receipts are acceptable if they contain all required information and the charity stores them on a protected system.
You should request your receipt at the time of donation or shortly after.
If you make a donation using a cheque from a joint bank account, the receipt can be issued in either name or both names—the charity has this flexibility.
Information Required on Receipts
Your official donation receipt must include specific information to be valid. The receipt needs the charity's registered name, address, and registration number.
It must also show a unique serial number for tracking purposes.
The receipt must include the date you made the donation and the amount you gave.
If you donated property instead of cash, the receipt should show the fair market value.
The receipt requires an authorized signature from someone at the charity.
The De Minimis Rule for Donation Receipts
When you donate to a charity and receive something small in return—like a tote bag, coffee mug, or bookmark—you may still qualify for a tax receipt for the full donation amount.
The CRA applies what's called the "de minimis threshold" for these situations.
If the advantage you receive (the value of the item) is less than $75 or less than 10% of your donation (whichever is less), the charity can issue a receipt for the full amount of your donation. You don't need to subtract the value of the small gift.
For example, if you donate $500 and receive a $30 tote bag, you can still claim the full $500 as a charitable donation. The $30 advantage falls below both thresholds: it's less than $75, and it's only 6% of your $500 donation.
However, if the advantage exceeds both thresholds, the charity must use split receipting. This means your receipt will show your donation minus the value of what you received.
How Long to Keep Donation Receipts
You need to keep your donation receipts for six years from the end of the last tax year to which they relate.
The CRA may ask to see your receipts during a review or audit of your tax return.
If you carry forward a donation and claim it in a future year, you must keep that receipt for six years from the end of the tax year in which you finally claim it.
Keep records of any amounts you carry forward to future years.
You should track which portion of the eligible amount you claim each year and what remains to carry forward.
This documentation helps you manage donations claimed over multiple tax years.
How to Claim Charitable Donations on Your Tax Return
You report charitable donations using Schedule 9 and transfer the total to line 34900 of your T1 Income Tax and Benefit Return.
The process involves documenting your donations, calculating your credits, and keeping track of any amounts you carry forward to future years.
Completing Schedule 9 and Line 34900
You must complete Schedule 9 to calculate your federal donation tax credit.
This form asks you to list all eligible donations you made during the tax year to qualified donees.
You need to enter the eligible amount from each donation receipt you received from registered charities.
Schedule 9 has separate sections for current year donations and donations you carried forward from previous years.
The CRA administratively expects you to claim carried-forward amounts before claiming current-year donations, though you have some flexibility in choosing which donations to claim and when.
The form calculates your credit at 15% for the first $200 in donations and at a higher rate for amounts over $200.
After completing Schedule 9, you transfer the total federal credit amount to line 34900 of your T1 Income Tax and Benefit Return.
Your provincial or territorial return will also calculate credits based on your donations, usually at different rates than the federal credit.
Filing on the T1 Income Tax and Benefit Return
Line 34900 on your T1 Income Tax and Benefit Return is where you report your total donation tax credits.
This line appears in the non-refundable tax credits section of your return.
The amount on line 34900 directly reduces the tax you owe rather than reducing your taxable income.
You can claim donations made by either you or your spouse or common-law partner.
Many couples choose to have one person claim all donations to maximize the benefit of the higher credit rate on amounts over $200.
Keep all official donation receipts with your tax records in case the Canada Revenue Agency requests them.
Reporting Donation Carry Forwards
You can carry forward unclaimed donations for up to five years from the year you made them.
For gifts of ecologically sensitive land made after February 10, 2014, you can carry them forward for up to 10 years.
You can split a single donation across multiple tax years. For example, if you donated $10,000 in one year, you could claim $5,000 that year and carry forward the remaining $5,000 to claim in a future year.
You must track carried-forward amounts yourself and report them on Schedule 9 in the year you choose to claim them.
Keep detailed records showing which portion of each donation you claimed and which portion remains available for future years.
Maximizing Tax Benefits from Charitable Donations
You can reduce your tax bill by using smart strategies when claiming charitable donations.
Understanding how tax credits work, when to claim donations, and how to combine them with your spouse gives you the most value from your charitable giving.
Pooling Donations with a Spouse or Common-Law Partner
You can claim all charitable donations made by either you or your spouse on one tax return.
This strategy helps you maximize your tax benefits because donation tax credits increase at higher amounts.
The federal government provides a 15% tax credit on the first $200 of donations.
All donations above $200 receive a 29% tax credit (or 33% on amounts over $200 if your taxable income exceeds $253,414 for the 2025 tax year).
When you pool donations on one return, you reach the $200 threshold faster. This means more of your donations qualify for the higher credit rate.
For example, if you donated $150 and your spouse donated $150, claiming both amounts on one return gives you a $200 claim at 15% and $100 at 29%.
Splitting them across two returns would give you only the 15% rate on both.
Donation Carry Forward Strategies
You don't need to claim all your donations in the year you made them.
You can carry forward donations for up to five years and claim them when they provide the most benefit.
You can also split a single large donation across multiple years. If you donate $10,000, you might claim $3,000 this year and carry forward $7,000 to claim over the next few years.
Carrying forward donations makes sense when your income is low in the current year.
If you expect higher income in future years, waiting to claim donations can result in larger provincial tax credits.
While the CRA administratively expects you to claim carried-forward donations before new donations from the current year, you have discretion in managing your claims. However, be careful not to let donations expire past the five-year carry-forward period.
Keep clear records of which portions you claim each year and what remains for future years.
For gifts of ecologically sensitive land made after February 10, 2014, you get a 10-year carry-forward period instead of five years.
Donation Tax Credit Rates and Calculation
Federal donation tax credits work on a two-tier system. You receive 15% on the first $200 of eligible donations.
All amounts above $200 receive a 29% federal credit, or 33% if your taxable income exceeds $253,414 (for the 2025 tax year).
Provincial tax credits add to your federal credits. Each province has its own rates, which typically follow a similar two-tier structure.
Your total tax savings from charitable donations combines both federal and provincial credits.
The tax credit reduces the tax you owe, not your taxable income.
This means if you donate $1,000, you don't subtract $1,000 from your income.
Instead, you calculate the credit using the rates above and subtract that amount from your final tax bill.
Timing Charitable Donations for Maximum Benefit
Making donations before December 31 lets you claim them on that year's tax return.
This timing matters most when you have high income in the current year.
Consider bunching donations every few years instead of giving small amounts annually.
This strategy pushes you past the $200 threshold more quickly, giving you access to higher credit rates on more of your donations.
You can also time donations around years when you sell assets or receive bonuses.
Higher income years mean higher provincial tax rates, which increases the value of your provincial tax credits.
Special Situations and Advanced Considerations
Some donations involve specific rules beyond standard cash gifts. Donating securities and capital property can offer extra tax advantages.
Donations to foreign charities face restrictions. Claim limits also apply based on your net income.
Donating Publicly Traded Securities and Capital Property
If you donate publicly traded securities like stocks, bonds, or mutual fund units directly to a qualified charity, you pay no capital gains tax on the appreciation. This is different from selling the securities and donating the cash, which would trigger capital gains tax.
The charity issues a receipt for the full fair market value of the securities on the transfer date. You can claim this amount as a charitable donation on your tax return.
This strategy works well if you have securities with significant unrealized gains.
Pro Tip for High-Net-Worth Donors: As of June 25, 2024, the capital gains inclusion rate increased to 66.67% for capital gains over $250,000 in a year (up from 50%). This change makes donating appreciated securities even more tax-efficient than before.
If you sell securities with large gains, you'll now pay tax on two-thirds of gains over $250,000. However, if you donate those same securities directly to a charity, you avoid capital gains tax entirely while receiving a donation receipt for the full fair market value.
For example, if you have stocks worth $500,000 that you purchased for $100,000, selling them would trigger capital gains tax on $400,000. With the new inclusion rate, you'd pay tax on approximately $233,340 of that gain (50% on the first $250,000 + 66.67% on the remaining $150,000). By donating the securities directly instead, you eliminate this tax entirely and receive a $500,000 donation receipt.
This strategy provides substantial tax savings for donors with appreciated securities worth more than $250,000.
Capital property donations also receive special treatment.
If you donate capital property like art or real estate, you can choose any amount between the property's cost and its fair market value as the deemed proceeds of disposition. This flexibility helps you manage your capital gains while supporting charities.
Transfer securities directly from your investment account to the charity's account. Your financial institution can help with this transfer.
Keep all documentation showing the transfer date and the security's value on that date.
Donations to Foreign Charities and Other Exception Cases
The Canada Revenue Agency generally only accepts donations to qualified donees for tax credits. Most foreign charities don't qualify unless they meet specific exceptions.
You can claim donations to certain U.S. charities if you report U.S.-source income on your Canadian tax return. The credit is limited to 75% of your net U.S. income.
Some universities outside Canada that normally enroll Canadian students also qualify.
Donations to organizations that aren't registered charities won't generate tax credits.
Always verify an organization's status on the CRA's qualified donee list before donating if you want tax credits. Political contributions receive separate tax treatment and appear on a different line of your tax return.
Don't claim political donations as charitable donations.
Limits on Claiming Charitable Donations
Your charitable donation claim cannot exceed 75% of your net income in most cases. If your donations for the year exceed this limit, you can carry forward the excess amount for up to five years.
For gifts of ecologically sensitive land, the carry-forward period extends to 10 years. The 75% limit increases to 100% of net income in the year of death and the preceding year.
This allows estates to make significant charitable bequests while maximizing tax benefits. While the CRA administratively expects you to claim carried-forward amounts from previous years before claiming current-year donations, you maintain discretion over which donations to claim and when, as long as they don't expire.
Keep detailed records of which portions you've claimed and what remains available.
Tax Credits for Deceased Taxpayers and Estates
When someone dies, their estate can claim donations made by the deceased or the estate itself. You can claim these donations on the final return, the return for the year before death, or both, up to the 100% of net income limit.
Donations made through a will generate receipts in the estate's name. The estate's executor decides which tax return benefits most from claiming these amounts.
This flexibility helps reduce taxes owing on final returns. Gifts made within 36 months after death can be claimed on the deceased's final return or the preceding year's return.
P113 (Gifts and Income Tax) provides detailed guidance on these situations. The graduated rate estate may also claim donations on estate returns for up to three years after death.
Conclusion
Claiming charitable donations on your Canadian tax return is straightforward if you have the right documentation and understand the process. You need official donation receipts from registered charities to claim your non-refundable tax credits on Line 34900.
You can carry forward unclaimed donations for up to five years, or ten years for gifts of ecologically sensitive land. The CRA administratively expects you to claim carried-forward amounts before claiming current-year donations, though you have flexibility in managing your claims.
If you need help with your charitable organization's accounting or tax compliance, B&H Charity Accounting Firm can assist you. Our team understands the specific requirements for charitable organizations in Canada.
We can help ensure your charity issues proper donation receipts and maintains accurate records. Call us at (289) 301-8883 or visit charityaccountingfirm.ca to learn more about our services.
Schedule a FREE consultation to discuss your charity's accounting needs.
We can help your organization stay compliant with Canada Revenue Agency requirements while supporting your donors' ability to claim their tax credits properly. Working with experienced professionals ensures your charity operates smoothly and your donors receive the documentation they need.
Frequently Asked Questions
You can claim donations if you meet specific requirements. The process involves entering information on Line 34900 of your tax return.
You need proper documentation. There are limits on how much you can claim based on your net income.
Who can claim charitable donations on their Canadian tax return?
You can claim charitable donations if you or your spouse or common-law partner made gifts of money or property to registered charities in Canada. The donations must be made to qualified donees, which include registered charities, registered amateur athletic associations, and certain other organizations approved by the CRA.
Either you or your spouse can claim the donations on your tax return. It usually makes sense to have the spouse with the higher income claim all the donations to get a bigger tax credit.
How do I include donations on my tax return?
You report charitable donations on Line 34900 of your income tax and benefit return. You enter the eligible amount of your donations, which triggers both federal and provincial or territorial non-refundable tax credits.
The federal credit gives you 15% back on the first $200 you donate. For amounts over $200, you get 29% back, or 33% if your taxable income exceeds $253,414 (for the 2025 tax year).
What documentation is required to support my charitable contributions when filing taxes in Canada?
You need an official donation receipt from the registered charity. The receipt must include the charity's name and registration number, your name, the donation date, the amount donated, and the signature of an authorized person from the charity.
Keep these receipts for at least six years from the end of the last tax year to which they relate. You don't need to send the receipts with your tax return, but you must have them available if requested.
Are there any limitations on the amount I can claim for charitable donations on my Canadian tax return?
You can claim up to 75% of your net income in charitable donations. If your net income is $55,000, you can claim up to $41,250 in donations that year.
Some situations allow you to claim more than 75%. You don't have to claim all your donations in the year you made them if it doesn't make sense for your tax situation.
Can I carry forward unused donations?
You can carry forward donations for up to five years. If you donated ecologically sensitive land after February 10, 2014, you can carry it forward for up to 10 years.
The CRA administratively expects you to claim carried-forward donations before claiming donations from the current year, though you have some flexibility in managing your claims. The tax credit rates that apply will be the rates in effect for the year you actually claim them, not the year you made the donation.
You can also split a single large donation across multiple years rather than claiming the entire amount at once.
What proof do I need for CRA to accept my donation claim?
The CRA requires an official receipt from a registered charity. The receipt must show the charity's registration number, which starts with RR followed by numbers.
You should verify that the organization is a registered charity before donating. You can check the CRA's list of registered charities online to confirm their status.
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