Great news! Starting in the 2013 taxation year, for first-time donors, the federal government introduces a temporary supplement to the existing non-refundable tax credit for charitable donations by individuals. This new credit effectively adds 25% to the rates used in the calculation of the Canadian Tax Credit 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.
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