Many Canadians underestimate the real value of tax credits for donations to registered charitable organizations because of the complex way they are calculated. That means they are applied like cash to the amount of taxes you pay. This makes them more valuable than tax deductions. As well, federal and provincial surtaxes are calculated as a percentage of basic federal taxes, further increasing the value of the tax credit for charitable donations. When you donate to the Calgary Public Library Foundation, you will receive an official income tax receipt.
Registered charities are the only charities that can issue official income tax receipts.
Simply complete the section on charitable donations on your income tax return, and attach your original donation receipts. The limit you may claim for the charitable donation tax credit is 75 percent of your net income for the year. You may also hold your charitable receipts for up to five years to get the maximum benefit. If you give more than 75 percent of your net income in a given year, you can carry over the unclaimed portion to any of the next five years. Top of Page Donating Securities You can save half of capital gains tax on your donations of publicly traded securities.