There is a new “super tax credit” for charitable donations.
Traditionally the Federal Government gives taxpayers a non-refundable credit of 15% on the first $200 of charitable donations, and 29% on the remainder, subject to a limit of 75% of your Net Income.
Starting in the 2013 tax year and lasting until 2017, they will be offering a bonus credit of 25% on the first $1000 of donations for first-time donors. This results in a total credit of 40% on the first $200 of donations, 54% on the next $800, and 29% thereafter.
For the 2013 taxation year, an individual will be considered a first-time donor if neither the individual nor the individual’s spouse or common-law partner has claimed the Charitable Donations Tax Credit in any of the five preceding tax years. Only donations of money that are made after March 20, 2013 will qualify for the First-Time Donor’s Super Credit.
This means that a $200 donation gets an $80 credit, a $500 donation returns $242 and a $1,000 donation only costs $498. The details are on the Revenue Canada site at this link:
www.cra-arc.gc.ca/gncy/bdgt/2013/qa01-eng.html#q2
In the last week, the Southern Cortes Community Association received more than $4,000 in individual donations to create a new kitchen in Manson’s Hall. We have an approved $3200 grant-in-aid from the Strathcona Regional District and the probability of $2000 more in January. We still need almost $20,000 to expand the existing room and redo wiring, plumbing, wall finish, ventilation, lighting and flooring. If you haven’t made a charitable donation in the last five years, this is a great time to do so. Go to www.mansonshall.org to learn more and help out. Let’s get cooking!