First-time Donor’s Super Tax Credit (FDSC)

The Federal 2013 Budget proposes to introduce a temporary First-time Donor’s Super Credit, which would be available to an individual if neither the individual nor the individual’s spouse or common-law partner has claimed the Charitable Donation Tax Credit (CDTC) or the FDSC in any taxation year after 2007.  For the purpose of this determination, an individual’s spouse or common-law partner will be the individual’s spouse or common-law partner on December 31 of the taxation year in respect of which the FDSC is claimed.

The FDSC will provide an additional 25% tax credit for a first-time donor on up to $1,000 of donations.  This will provide the first-time donor with a 40% federal tax credit for donations of $200 or less, and a 54% federal credit for donations over $200 but not exceeding $1,000.  Only donations of money will qualify for the FDSC.  First-time donor couples may share the FDSC in a tax year, but the total amount claimed by an individual and spouse cannot exceed the amount that would be allowed if only one were to claim the FDSC.

The FDSC will be available for donations made on or after March 21, 2013, and may be claimed only once in the 2013 tax year, or a subsequent tax year before 2018.  The FDSC will not be available after 2017.

Note that for one taxpayer to fully utilize the super tax credit on a $1,000 donation, employment income of $16,531 or more is required in most provinces.