Can I claim donation tax credit for my volunteer work

Many people think that they can claim donation tax credit for their time and effort when you do volunteer work for charity. Actually, it is not true. You cannot claim a credit for donation of services.

By law, a registered charity is not allowed to issue an official donation receipt for gift of services. Only cash or property are considered gift. Services (donated time, skills, or efforts) do not qualify as gifts for the purpose of charitable donation credit

However, if the charity pays you for the services you provided, you may donate the payment to the charity. In this case, you are eligible to claim the donation credit. This is sometimes called a cheque swap. In this case, you would also have to include the payments in your income to pay income tax. And it is important that the funds must actually change hands.  

 

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