Tag Archives: charitable donations

New First Time Donor’s Super Credit-CRA

Canada Revenue Agency has started a new supplement with an added 25% to the rates used to calculate monetary donations.

So if you have not donated in the past 5 years and claimed it on your income tax, nows the time!

Donate Through Paypal

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We have saved many seeds but do not have the funds to courier them to Zambia.

It costs approximately $200.00 to send the seeds and now I have two connections in Eastern Province and one connection in Western Province to send the seeds to. Therefore I need to collect $600.00 in donations to send the seeds now as the rainy season has started.

Any donation would be appreciated as it all adds up.

See the explanation of how it all works with the CRA below.

Thank you! Joanne

What is the new First-Time Donor’s Super Credit (FDSC)?

A2. Starting in the 2013-2017  taxation year, the budget proposes to introduce a temporary non-refundable FDSC that will supplement the CDTC for individuals. This new credit effectively adds 25% to the rates used in the calculation of the CDTC for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.

Example 1: An eligible first-time donor claims $500 of charitable donations in 2013. All of the donations are donations of money. The first-time donor’s FDSC and CDTC would be calculated as follows:

First $200 of charitable donations claimed: $200 x 15% = $30
Charitable donations claimed in excess of $200: $300 x 29% = $87
First-Time Donor’s Super Credit: $500 x 25% = $125
Total FDSC and CDTC: $242

Example 2: An eligible first-time donor claims $700 of charitable donations in 2013. Only $300 of the donations are donations of money. The first-time donor’s FDSC and CDTC would be calculated as follows:

First $200 of charitable donations claimed: $200 x 15% = $30
Charitable donations claimed in excess of $200: $500 x 29% = $145
First-Time Donor’s Super Credit: $300 x 25% = $75
Total FDSC and CDTC: $250

Q3. When can I claim the FDSC?

A3. As the FDSC is a temporary credit, you can only claim it once from the 2013 to 2017 taxation years.

Q4. Who is considered a first-time donor?

A4. 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 CDTC in any of the five preceding tax years.

Q5. Can both my spouse or common-law partner and I claim the FDSC?

A5. As a first-time donor, the FDSC, along with the corresponding CDTC, may be shared by you and your spouse or common-law partner in a particular taxation year. However, the total amount of donations that may be claimed for the FDSC by both individuals cannot exceed $1,000. When it cannot be agreed on the amount of the credit that each of you will claim, the CRA may apportion the credit.

Q6. Do all of my donations qualify for the FDSC?

A6. No. Only donations of money that are made after March 20, 2013 will qualify for the FDSC. For taxation years from 2013 to 2017, a new line will be added to Schedule 9, Donations and Gifts to identify the eligible portion of the charitable donations that you have claimed that are donations of money.

Q7. Where can I get more information about the FDSC?

A7. The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web site often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please see the Department of Finance Canada’s Budget 2013 documents for details.

Date Modified: 2013-03-27