The new First-Time Donor’s Super Credit announced in the 2013 Federal Budget is designed to encourage first-time charitable donors through an enhanced tax incentive.

The standard federal tax credit for a donation is 15 per cent of the first $200 and 29 per cent for amounts beyond that level. This increased tax credit will add 25% to the current credit. Consequently, for donations of up to $200, there will be a credit of 40%, as opposed to the current 15%, and for donations in excess of $200, there will be a credit of 54%, as opposed to the current 29%.

This increased tax credit only applies to cash donations, as opposed to donations in kind. A first-time donor is an individual (other than a trust), including their spouse or common-law partner, who has not claimed the donation tax credit in any year after 2007. First-time donor couples may share the increased tax credit.

This increased tax credit will be available for donations made on or after the Budget and until 2017. In addition, this increased credit may only be claimed in one taxation year.

This calculator compares the regular tax credit to the First-time Donor’s Super Credit announced in the 2013 federal budget.  Try the calculator and see the difference the Super Credit makes.