Fewer Canadian Taxpayers Claiming Charitable Donations

by Mike Godfrey, Tax-news.com, Washington

16 December 2016

The percentage of Canadians claiming charitable donations on their taxes is at its lowest in a decade, according to a new study by the Fraser Institute.

The think tank's "Generosity in Canada and the United States: The 2016 Generosity Index" measured donations to registered charities claimed on personal income tax returns. It ranked Canada's 10 provinces and three territories, the 50 US states and Washington, DC.

The study found that in 2014 (the last year of available data), 21.3 percent of Canadian tax filers claimed charitable donations. In 2004, this figure was 25.1 percent. By comparison, 24.5 percent of American tax filers claimed charitable donations in 2004.

The Fraser Institute added that the size of Canadians' charitable donations in 2014 – 0.56 percent of their income – was also at a 10-year low. A peak of 0.78 percent was seen in 2006. Americans gave 1.42 percent of their income to charity in 2014.

Canada offers a First-Time Donor's Super Credit and a general non-refundable charitable donation tax credit.

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