An outright gift of cash is the simplest and most common gift which benefits Citadel Foundation immediately. You receive a tax-creditable receipt for the full amount of your gift that will result in immediate tax savings. The maximum amount of contributions credited in any one year is 75 percent of your net income. Any unused portion can be carried forward and used in any of the next five years, subject to the annual contribution limit.
Each year a percentage of your accumulated donation receipts, 16 percent for the first $200 and 29 percent thereafter, can be subtracted from the federal income tax you owe and also reduces your provincial taxes. Depending on your provincial tax rate, the combined tax savings could be as much as 50 percent of your contribution.
(assuming combined tax savings credit of 50%)
John writes a cheque for $ 1000 to Citadel Foundation. The net cost of John’s gift is only $ 500 because the donation receipt for $1000 reduces his income taxes for that year of $500.