Are charitable donations tax deductible: everything you need to know
The old saying goes that it’s better to give than to receive. If you aren’t convinced, research has shown that supporting other people can make you happier and may actually help you live longer.
Another added bonus? Doing good can reduce your tax bill when it’s time to write a cheque to the Canada Revenue Agency (CRA).
If you’re interested in donating to a good cause while also reaping the tax benefits of charitable giving, it’s important to understand the tax rules. This article explains whether charitable donations are tax deductible, how they work, and other key aspects of the rules.
What is a charitable donation tax credit?
A charitable donation tax credit is a credit that reduces your tax liability for the year in which you make a donation, reducing the amount of taxes you pay. This means you’re able to support a cause close to your heart while getting a tax break at the same time.
When making a personal donation, you’ll receive a tax receipt. This receipt will contain your donation amount, the charity’s name, and its registration number. You’ll then use this tax receipt to claim your charitable donation tax credit on your tax return before April 30th.
In Canada, you can claim federal and provincial or territorial non-refundable tax credits for part or all the eligible amount of your gifts, up to the limit of 75% of your net income for the year. By saving your receipts, you can qualify for a federal tax credit of 15% of the first $200 of donations and 29% of your additional donations (33% for those in the highest tax bracket, which applies to income over $258,482 for 2026).
In addition to the federal tax credit, you can get from 4% to 25.75% provincial or territorial credits. However, the rates vary from one province to another, and you’ll need to donate to a registered charity or one of several other public organisations.
Which charities qualify for the charitable donations tax credit?
To be eligible for a tax credit, you need to donate to a registered charity, such as a non-profit organisation, foundation, or certain religious organisations. You should always check with the CRA to ensure they are a registered charity before you donate.
Here are some of the organisations that qualify:
- Canadian amateur athletic associations
- Universities outside Canada
- Municipal or public bodies performing a function of government in Canada
- Municipalities
- Foreign charities that have received a gift from His Majesty in right of Canada
- Registered journalism organisations
- Low-cost housing corporations for the aged
If you donate to an organisation that’s not recognised by the CRA, then you won’t be able to claim a tax credit.
How do I claim a deduction for charitable donations?
All Canadians can claim the charitable donations tax credit if they have an official donation receipt. As long as you choose one of the charities that qualify for tax-deductible donations and don’t receive anything in return, you can claim the full donation.
If you do receive anything in exchange for your charitable donation, then the value of what you received must be taken off the amount you donated. This could be in the form of money or anything else of value, such as property, stocks, gifts, or tickets.
When it comes to claiming your credit, you report it on your federal and provincial tax returns along with your tax receipt. The credit is calculated using Schedule 9, a CRA form used specifically for donations and gifts, completed as part of your federal tax return. Full instructions are available on the Line 34900 page on the CRA website. The federal credit is claimed at Line 34900 of the T1 form, and the provincial credit is claimed at Line 58969 of the provincial Form 428.
Please note: You don’t have to claim the eligible donations you made in the year on your income tax return for that current year. You can carry them forward and claim them on your return for any of the next five years. However, you can claim them only once.
You must claim tax credits for donations you carried forward from a previous year before you claim tax credits for donations you give in the current year.
Charitable donation tax credit: Top tips
If you want to make the most of your charitable contributions, you’ll want to keep these tax tips in mind.
Always ask for receipts
As you’ve probably already guessed, it’s absolutely essential you get a tax receipt as proof of your charitable donation, otherwise you won’t be eligible. The receipt needs to be included when you complete your tax return and will state the amount you’ve donated, the charity’s name, and its registration number.
Time your donation correctly
In Canada, you have to file your tax return on or before April 30th. This ensures you avoid late-filing penalties and interest. However, it’s important to remember that you can claim your charitable donations for up to five years, meaning you can accumulate multiple years’ worth and file them together.
Transferring your charitable donation tax credits to a spouse or common-law partner
If claiming your donations will not affect your tax bill or refund, then you can transfer all or some of your charitable donations to your spouse. By pooling donations, you can actually earn a bigger credit.
Make sure you claim personal benefits and gifts
Don’t forget to claim any incentives, personal benefits, or gifts from your donation. The CRA requires you to subtract that cost from the amount you plan on claiming as a charitable donation.
For example, if you receive tickets to an event valued at $25 for your donation of $200 to an organisation, you could only claim $175 as a charitable donation on your taxes.
Consider working with a tax professional
Tax laws can change on a yearly basis and everyone’s situation is different, so you may wish to consider working with a tax professional before following any of the advice outlined in this guide. A tax professional will ensure you’re adhering to tax laws, and they’ll be able to help you maximise charitable donation tax credits.
Are specific types of donations tax deductible in Canada?
The type of organisation you donate to determines whether your gift qualifies for the charitable donation tax credit.
Church and religious donations
Donations to registered religious organisations, including churches, mosques, synagogues, and temples, are eligible for the charitable donation tax credit. The organisation must be registered with the CRA, and the same rules apply as for any other registered charity: you need an official donation receipt, and the organisation must appear on the CRA’s list of registered charities. You can confirm registration status by searching the CRA charity registry before you donate.
Political donations
Political donations do not qualify for the charitable donation tax credit. Donations to registered federal political parties and candidates are eligible for a separate federal political contribution tax credit, claimed at Line 41000 of your T1 return, calculated at 75% on the first $400, 50% on the next $350, and 33.33% on the next $525, up to a maximum credit of $650 per year. This credit applies to federal donations only; provincial political contribution credits vary by province and are claimed separately on your provincial return.
Corporate charitable donations
Corporations handle charitable donations differently from individuals. Rather than claiming a tax credit, corporations report charitable donations on their corporate tax return to reduce taxable income, up to 75% of net income for the year, with any amount above that limit carried forward for up to five years. A tax professional can help ensure the recipient organisation qualifies and that donations are documented correctly for CRA purposes.
Foreign and international donations
In general, donations to foreign charities do not qualify for the Canadian charitable donation tax credit. Two exceptions exist: donations to universities outside Canada listed in Schedule VIII of the Income Tax Regulations, and donations to foreign charities that have received a gift from His Majesty in right of Canada. Always confirm eligibility with the CRA before claiming a tax credit on a foreign donation.
Are GoFundMe contributions tax deductible in Canada?
In the age of crowdfunding and fundraising online, it has never been easier to support your favourite charity. Technology has changed the way people all over the world help others. Lending a digital hand to those in need is now effortless and finding the best charities to donate to takes no time at all.
The top charity fundraising sites have done an incredible job of simplifying the giving process for donors and organisers alike. Reputable crowdfunding platforms issue tax-deductible receipts for donations made to certified charity fundraisers. They also give donors a way to easily track their donations in one place.
So, yes, if donations are made to a certified charity fundraiser, then GoFundMe contributions are tax deductible. Remember to check with the CRA to ensure they are a registered charity before you donate.
Donations to personal fundraisers on GoFundMe, such as those raising funds for medical bills or personal hardship, are generally not eligible for the charitable donation tax credit in Canada, as the recipient is an individual rather than a registered charity.
Only donations made through certified charity fundraisers on GoFundMe qualify, where funds go directly to a CRA-registered organisation and an official receipt is issued by the charity or through PayPal Giving Fund Canada. If a tax receipt is important to you, confirm the charity’s CRA registration status before donating.
Give back to an online charity fundraiser
Thousands of people have used GoFundMe to give back to causes they care about. Through our platform, individuals can quickly donate to certified charities and become part of an online community of people who share similar passions.
Discover charity fundraisers on GoFundMe and support a cause you care about today.
If you’d like to make an even bigger impact, give back with charity fundraising by starting your very own crowdfunding fundraiser.
Charitable donations and tax credits in Canada FAQs
In Canada, charitable donations generate a tax credit for the donor. The federal credit is 15% on the first $200 of donations and 29% on amounts above $200 (33% if your income exceeds approximately $253,414 for 2025). A provincial or territorial tax credit is also available, ranging from 4% to 25.75% depending on where you live. Together, the federal and provincial credits mean most Canadians recover roughly 20% to 50% of their total donation amount.
Yes. Donations to registered religious organisations, including churches, mosques, synagogues, and temples, are eligible for the charitable donation tax credit. The organisation must be registered with the CRA. Verify registration status at the CRA’s list of registered charities before donating.
Political donations do not qualify for the charitable donation tax credit. Donations to registered federal political parties and candidates qualify for a separate federal political contribution tax credit, with rates calculated as follows:
- 75% on the first $400
- 50% on the next $350
- 33.33% on the next $525
- Maximum credit of $650 per year
Provincial political contribution credits vary and are claimed separately on your provincial return.
The answer depends on the type of fundraiser. Donations to certified charity fundraisers on GoFundMe, where funds go to a CRA-registered organisation, are tax-deductible, and the charity or PayPal Giving Fund Canada issues an official receipt. Donations to personal fundraisers, such as those raising money for an individual’s medical bills or personal hardship, are not eligible for the charitable donation tax credit, as the recipient is not a registered charity. Always confirm the charity’s CRA registration status before donating if a tax receipt matters to you.
Yes. Charitable donations not claimed in the current tax year are eligible to be carried forward to any of the next five years. Donations carried forward from previous years must be claimed before those made in the current year. Accumulating several years of donations and claiming them together often results in a larger overall credit.