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TAX
 INCENTIVES
This information is correct to the best of our understanding, but you should always seek
legal or accounting advice from a professional tax advisor. The Calgary Public Library
Foundation provides this information for general use only.
The credit for charitable donations is an outstanding tax break for most Canadians, and
the more you donate, the more taxes you could save! Charitable donations are not a standard
deduction. They work as a tax credit, so have a far bigger impact on the amount of taxes you pay.
Take a look . . .
If you donate $200 or less to registered Canadian charities this year, the amount of income
tax you pay will be reduced by at least 25 cents for every dollar you donate.*
Even better . . .
For every dollar that you donate exceeding $200, your taxes will be reduced by at least 40 cents.*
Let’s use total tax deductible donations of $1,000 as an example. If you are an Alberta
resident, you will receive a $418 tax credit for your donation. For every $5 you donate,
you get $2 back!*
* The exact value of the charitable donation tax credit varies according to your province of
residence, and may vary slightly according to your taxable income.
Many Canadians underestimate the real value of tax credits for donations to registered
charitable organizations because of the complex way they are calculated.
Simply, here’s how it works:
1. Charitable donations are tax credits – not deductions. That means they are applied like
cash to the amount of taxes you pay. This makes them more valuable than tax deductions.
2. Donations of less than $200 will reduce your basic federal taxes by 17% of the amount you donated.
3. Donation amounts greater than $200 will reduce your basic federal taxes by 29% of the amount you donated.
4. Provincial income taxes are calculated as a percentage of basic federal taxes, so the federal
tax credit will reduce provincial income taxes as well (except in Quebec).
5. 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.
Frequently Asked Questions
What is the process for claiming my tax credits?
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. Please do not lose your receipt. In most cases, duplicates cannot be issued.
What is the maximum amount of donations that I can claim?
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.
For answers to other questions about charitable donations, contact your professional advisors or call
the Charities Division of Revenue Canada at 1-800-267-2384.
Remember, tax credits mean that you can afford to give more to your favorite charities!
Donating Securities
You can save half of capital gains tax on your donations of publicly traded securities.
If you own shares that are traded on a stock exchange, you can get extra tax savings by donating them
to a registered charity such as the Calgary Public Library Foundation.
If you sell your shares and then donate the funds to a registered charity, you would have to pay tax on
75 percent of the capital gain on any shares sold or given away. But if you donate the shares directly
to a registered charity only 37.5 percent of your capital gain will be taxable. So in effect, your capital
gains tax is cut in half.
When you add this capital gains tax reduction to the tax credit you receive for your donation, the total
value of your tax benefits can equal as much as 64 cents for every dollar worth of stock that you donate!
Including the Alberta, Montreal, Toronto, Vancouver and Winnipeg stock exchanges, and 26 foreign stock
exchanges.
The Calgary Public Library Foundation
616 Macleod Trail SE
Calgary, Alberta, T2G 2M2
Phone: (403) 260-2631
Monday to Friday, 9:00 a.m. - 5:00 p.m.
Fax: (403) 234-8763
Email: DearLibrary@calgarypubliclibrary.com
Charitable Registration Number: 87292-3537-RR-0001
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