Donations and Credits Glossary
Master the language of donations and credits with this easy-to-navigate A–Z reference
- Appraisal Requirement (Donations Over $1,000) – CRA requirement for an independent appraisal when donating goods valued over $1,000 to establish fair market value before issuing a tax receipt.
- CanadaHelps / Benevity – Online fundraising platforms and donation portals that are themselves qualified donees, issuing official receipts for donations made through their services.
- Carried Forward Donations – Unused donation amounts that can be claimed in future tax years, up to five years after the original gift.
- Carry Forward of Donations – The ability to defer claiming charitable donations for up to five years, allowing taxpayers to optimize the tax credit based on income and timing.
- Combined Tax Credit Impact – The total tax reduction from both federal and provincial donation tax credits, often reducing the after-tax cost of a charitable donation by 40% to 50% or more.
- CRA Automatic Application – The process by which the CRA calculates both federal and provincial donation tax credits automatically based on the taxpayer’s province of residence and claimed donations.
- CRA List of Charities and Qualified Donees – An online searchable database provided by the Canada Revenue Agency to verify whether an organization is authorized to issue donation receipts.
- Cultural or Ecological Gifts – Donations of certified cultural property or ecologically sensitive land made to qualified institutions; eligible for special tax treatment under the CRA.
- Digital Donation Receipt – An electronic version of an official charitable donation receipt (e.g., PDF), accepted by the CRA if it meets all standard formatting and content requirements.
- Donated Goods / Gifts-in-Kind – Physical items donated to a registered charity, eligible for a tax receipt if fair market value is documented and the charity provides an official receipt.
- Donation Documentation by Type – The specific records required for different types of donations (e.g., cash, securities, payroll, property) to ensure CRA compliance when claiming tax credits.
- Donation Receipt (CRA Requirements) – An official receipt issued by a registered charity that includes specific information (e.g., charity registration number, amount donated, donor's name) required for a tax credit claim.
- Donation Tax Credit – A non-refundable credit that reduces the amount of tax owed when eligible donations are made to registered charities or qualified donees.
- Eligible Donations – Gifts that qualify for the donation tax credit, including cash, publicly traded securities, cultural property, and bequests to registered charities.
- Employer Payroll Giving – A workplace donation program where charitable contributions are deducted directly from an employee’s paycheck, often reported on the T4 slip.
- Fair Market Value (FMV) – The price a property or item would reasonably fetch in the market, used to determine the eligible donation amount for non-cash gifts.
- Fair Market Value (Securities Donations) – The value used to determine the donation amount when gifting securities; based on the market value at the time of transfer, not purchase price.
- Gifts of Securities – Donations of publicly traded shares or mutual funds, eligible for a tax receipt at FMV and exemption from capital gains tax when transferred directly to a registered charity.
- Ineligible Donations – Contributions that do not qualify for a tax receipt, such as donated services, use of property without ownership transfer, or gifts to non-registered organizations.
- Intermediary Fundraising Platforms – Third-party organizations like CanadaHelps or workplace portals that collect donations on behalf of registered charities and issue tax receipts as qualified donees.
- Monthly Recurring Donation – Charitable contributions made on a regular monthly basis, supported by a year-end consolidated receipt or 12 individual receipts for tax filing.
- Non-Qualified Donee – An organization not registered with the CRA as a qualified donee, and therefore not eligible to issue official donation receipts (e.g., community clubs, crowdfunding pages, or unregistered non-profits).
- Prescribed Universities Outside Canada – Foreign universities designated by the CRA as eligible to receive donations from Canadian taxpayers and issue official donation receipts.
- Provincial Donation Credit Rate – The percentage applied by each province or territory to eligible charitable donations over $200, contributing to the total non-refundable tax credit.
- Provincial Donation Tax Credit – A non-refundable credit offered by provincial or territorial governments that complements the federal donation tax credit and is based on the same eligible gifts.
- Publicly Traded Securities Donations – A tax-efficient way of giving involving the donation of appreciated stocks or mutual funds, which results in a donation receipt and no capital gains tax.
- Qualified Donee – An organization authorized by the CRA to issue official tax receipts for donations, including registered charities, municipalities, governments, and certain international agencies.
- Quebec Abatement – A special reduction of federal tax for Quebec residents, which integrates with Quebec’s higher provincial donation tax credit rate and alters the usual federal-provincial split.
- Registered Canadian Amateur Athletic Association (RCAAA) – A type of qualified donee focused on promoting amateur athletics in Canada, eligible to issue donation tax receipts.
- Registered Charity – An organization recognized by the CRA as eligible to issue official donation receipts and receive charitable gifts with tax-credit eligibility.
- Registered Journalism Organization – A qualified donee category under the CRA that includes organizations producing original news content and eligible to issue donation receipts.
- Schedule 9 – The section of the T1 income tax return where eligible donations are reported to calculate federal and provincial tax credits.
- Third-Party Giving Portals – Online or workplace platforms that facilitate charitable giving and issue official tax receipts on behalf of end recipient charities.