The Canadian federal government has committed to extending the 2024 charitable donation tax deadline to February 28, 2025. This extension is in response to the disruptions caused by the Canada Post strike, which affected many donors and charities.
This extension will allow donations made from January 1 to February 28, 2025, to be claimed on your 2024 tax return. The intent is to provide flexibility for donors to maximize tax benefits also to support charities whose fundraising campaigns were negatively affected by the strike.
While the federal government has committed to amending the Income Tax Act to reflect the extension, this will not be legislated until March 24, 2025, following the current prorogation (suspension) of parliament.
What you need to know:
Organizations and donors need not be worried by the fact that the legislation will be passed after the tax receipt extension deadline[1]. The eventual legislation was intended to be applied retroactively, and the prorogation doesn’t change that. In fact, in 1997 when the federal government announced a similar measure for that year’s postal strike, the bill that eventually implemented the month-long extension into January 31, 1998, wasn’t passed until 1999.
Will tax receipts be dated differently?
No. Tax receipts will reflect the date your donation was received or postmarked. Surrey Hospitals Foundation will be processing receipts as normal, and no dates will be changed.
How do I apply my tax receipt to my 2024 taxes?
You can choose to apply donation receipts issued from January 1 – February 28, 2025 when you prepare your 2024 tax return. Keep in mind, receipts used for your 2024 return cannot be used again for your 2025 taxes.
Added tax benefits from donating shares and securities
2024 was a very good year in the stock market. Donating shares and securities allow you to maximize your tax benefit by:
- Receiving an immediate tax receipt: You’ll receive a donation receipt for the fair market value of the securities at the time of the gift.
- Eliminating capital gains tax: Donating securities directly allows you to avoid capital gains tax, increasing your tax savings.
Thinking about donating? Visit our Ways to Give page for steps on how to donate shares and save on taxes.
Sources:
[1] Imagine Canada, LinkedIn, January 13, 2025
