About the First-Time Donor’s Super Credit
The Canadian Federal Government’s 2013 Budget established a First-Time Donor’s Super Credit (FDSC). It is designed to encourage charitable donations from first-time donors or from those who have not claimed a charitable donation on their taxes in the last five years. This is a great opportunity for anyone making his/her first charitable gift!
Charitable donations are eligible for tax credits, which make it possible for donors to get a portion of their donations back on their tax returns. The standard federal tax credit for a donation is 15% for the first $200 and 29% for donations above the $200 level. With the Super Credit, the federal tax credits increase by 25%.
If neither you nor your spouse has claimed a donation tax credit in any year since and including 2008, you will now be eligible for federal tax credits as follows:
- Donations up to and including $200, 40% federal tax credit
- Donations from $201 to a maximum of $1,000, 54% federal tax credit
Depending on a donor’s personal circumstances, he/she may also be eligible for provincial tax credits in addition to the federal tax credits.