Federal Budget introduces FIRST TIME DONOR SUPER CREDIT

On March 21, the 2013 federal budget announced the establishment of a new tax incentive for charitable giving. The First-Time Donor’s Super Credit will be available to people who have never claimed the federal charitable tax credit, or whose most recent claim of the existing credit was in 2007 or earlier. The Super Credit will add 25 percentage points to the federal charitable tax credit the first time these individuals claim charitable donations made between March 21, 2013 and the end of 2017. Imagine Canada’s President, Marcel Lauzière, recently published a blog post (“Super Credit, Super Opportunity”) exploring the background and motivation behind the Super Credit, and why we see it as a positive step for charities. The Super Credit is an important step on the road to achieving the full Stretch Tax Credit for Charitable Giving that charities across the country have asked the federal government to implement.

The Stretch has two goals: to get Canadians who do give, to stretch their giving, and to get those who have yet to give, to give for the first time. The Super Credit responds directly to this second objective.The CRA has produced a technical overview of the Super Credit.
Imagine Canada has produced a document discussing some of the broader issues around the Super Credit and providing answers to some of the most frequently asked questions about it. They have also prepared charts showing how the Super Credit will affect the charitable tax credit in each province and territory, and what the Super Credit means to someone claiming donations at the $1000 maximum.

General tips on how to use the Super Credit are available in a blog post on the Association of Fundraising Professionals’ (AFP) website. People eligible to claim the Super Credit will mainly fall under three categories, younger people who are only starting to file income taxes, new Canadians, and people who used to give, but have not claimed a tax credit since 2007.