As the current taxation year is coming to an end, there are many opportunities to reduce your tax burden by giving to the causes you hold dear:

  1. Donations in Cash: Cash donations at the federal level receive a 15% tax credit on the first $200 and a 29% credit on all donations over $200. At the provincial level, Quebec offers a tax credit of 20% on the first $200 donated and 24% on all amounts in excess of $200.
  2. Donations of Publicly Traded Shares: Donations of securities allow individuals to avoid capital gains taxes on accrued gains while receiving a tax receipt for the full value of the security. For corporations this strategy can be even more lucrative: half of the amount of the capital gain on the donated securities can be paid to shareholders tax-free.
  3. Cultural Gifts (Quebec): The Quebec government has implemented new short-term measures ending January 1, 2018 to encourage cultural philanthropy. The first time an individual donates cash under this program, for amounts between $5,000 and $25,000, to a Quebec charity “operating in the field of art or culture,” he or she will receive an additional 25% tax credit. Individuals can also give $250,000 or greater (which can be spread over a 10 year period) to a QC cultural organization for which they will receive an enhanced tax credit.
  4. Political Contributions:  Individuals can contribute up to $1,275 to a registered federal political party for which they will receive a tax credit up to $650. Beginning in 2013, contributions to Quebec provincial political parties are no longer eligible for a tax credit. However, individuals can still give up to $200 to Quebec municipal political parties for which they will receive a tax credit up to $155.
  5. Donation of Ecologically Sensitive Property: Ecologically sensitive land can be given to an approved charity but must be certified by Environment Canada as ecologically sensitive before doing so.

The holidays are a great time of year to express support for your local community. We’d be happy to help you in implementing any of the above-mentioned strategies.