WHAT YOU CAN DO

Tax Credits of Charitable Giving

Giving to United Way has many benefits, both to our community and to you. Your donation of cash, securities and other assets is eligible for charitable tax credits, which can reduce the federal and provincial income tax you pay each year.

Generally, you can claim tax credits for donating up 75 per cent of your net income for the year. However, you do not have to give this much to realize substantial benefits.

The tax benefits of giving

The portion of donations to registered charities in excess of $200 entitles you to a tax credit of 50 percent (29 percent federal tax credit plus 21 percent Alberta provincial tax credit). 

The tax benefits of giving donations of up to $200

As an Alberta resident, the first $200 of all your gifts to charities entitle you to a tax credit of 25 percent (15 percent federal tax credit plus 10 percent provincial tax credit.

For example, when you give $100 to United Way, your taxes will be reduced by $25, meaning your donation costs you just $75 after tax.

Donations of more than $200

All gifts to charities over the initial $200 entitle you to a tax credit of 50 percent (29 percent federal tax credit plus 21 percent Alberta provincial tax credit). For example, when you give $1,000 to United Way, the first $200 creates a tax credit of $50 and the remaining $800 creates a tax credit of $400. The tax credits add up to $450 and your donation costs just $550 after tax.

Calculating the after-tax cost of your cash donation

Check out our tax calculator

Donating publicly traded securities

Capital gains tax was eliminated on most donations of publicly traded shares many years ago. This provides a tax effective avenue to making a donation. However, in the case of flow through shares, the rules governing inclusion of capital gains were modified with effect of the 2011 federal budget. Please obtain appropriate financial advice before making your decision.