Your donation of cash, securities, and other assets to United Way is eligible for valuable charitable tax credits, which can reduce the federal and provincial income tax you pay every year. When you donate to United Way, your tax receipt is processed automatically; many donors choose to consolidate all of their giving with United Way and receive one comprehensive tax receipt as a result. This ensures they don’t miss out on any tax benefits and simplifies the tax filing process overall.
For an annual taxable income of less than $205,842:
- The first $200 of all your charitable giving entitles you to a tax credit of 25% (10% provincial tax credit and 15% federal tax credit).
- You are entitled to a tax credit of 50% for all charitable gifts exceeding the initial $200 (21% provincial tax credit and 29% federal tax credit).
If your annual taxable income is more than $205,842 you may be eligible for further tax credits. Please contact a financial advisor for more information.
To see your exact tax credit, visit the Canada Revenue Agency’s tax calculator.
The chart below demonstrates the considerable tax savings at various giving levels*:
*These examples are based on an annual taxable income of less than $205,842. Please consult a financial advisor to learn more.
|$1 - $1,199||LEADERSHIP|
|$1,200 - $9,999||MAJOR|
|Alberta Tax Credit||$12||$104||$230||$1,028||$2,078||$5,228|
|Federal Tax Credit||$18||$146||$320||$1,422||$2,872||$7,222|
|Cost After Tax||$90||$350||$650||$2,550||$5,050||$12,550|
Planned Gifts can have important implications for your long-term tax, financial, and estate plans. Tax credits claimed on legacy gifts—such as a bequest in your will or naming United Way as a beneficiary of your life insurance policy—can be up to 100 per cent of net income on your final tax return, and can be a well-structured financial strategy. United Way regularly offers free educational estate planning seminars for donors; contact a Planned Giving Officer for information about upcoming seminars. You can also learn more about how a planned gift to United Way can help you maximize personal tax benefits from your financial advisor.