The first-time donor’s super credit (FDSC) was introduced by the federal government in its Budget 2013. It is a temporary supplement to the existing non-refundable tax credit for charitable donations. It adds 25 percentage points to the federal charitable donation tax credit (CDTC) for eligible donors. FDSC can be claimed once between the 2013 and 2017 taxation years.
Who are eligible for the first-time donor’s super credit (FDSC)?
To be eligible, you have to be a first-time donor. You are considered first time donor if neither you nor your spouse or common-law partner has claimed the charitable donation tax credit (CDTC) in any of the five preceding tax years.
What donations are eligible?
Not all donation are eligible. Only cash donation made after March 20, 2013 will qualify for the FDSC. And there is a $1,000 limit on donations that will attract the super credit.
When can you claim the FDSC?
As the FDSC is a temporary credit, you can only claim it once from the 2013 to 2017 taxation years. For example, you have eligible donation of $30 in 2013 and $800 in 2014. If you claim the $30 donation on your 2013 tax return, the FDSC would only be applied to this amount. However, if you wait until 2014 and claimed both years’ donations, the FDSC would apply to the full $830.