Giving back feels good—but did you know it can also be smart financial planning?

As a donor, you already know that your generous giving to True Patriot Love supports Canadian Armed Forces members, Veterans, and their families through grants to community programs, research, and advocacy to improve well-being, inspire recovery, strengthen families, and foster community connection. (And thank you again for your support!)

But your charitable donation can also come with significant tax benefits for you.

Whether you donate cash, securities, or other assets, knowing the rules can help make your generous gifts go further while reducing your tax bill.

How to maximize the impact of your giving

Before you read on, keep in mind that this information is general in nature and not legal or financial advice. Always consult a professional financial advisor to determine what strategies make sense for your situation.

1. Your Federal and Provincial Donation Credits

At the federal level, you’ll receive:

  • 15% tax credit on the first $200 you donate.
  • 29% tax credit on donations above $200

Provinces add their own credits, ranging from 4% to 25%, depending on where you live. Combined, this can mean receiving back as much as 49% of your donation at tax time. For example, a $1,000 donation could earn you up to $494 tax credit in some provinces.

Try the CanadaHelps Charitable Tax Credit Calculator on their website to see what the tax credit might be for you.

2. Donate Appreciated Securities to Eliminate Capital Gains

Instead of donating cash, consider donating publicly traded securities, mutual funds, or stock options. Why?

  • No capital gains tax: Normally, selling appreciated investments means you pay tax on 50% of the gain. Donating securities directly eliminates that tax.
  • Double benefit: You get a tax receipt for the full fair market value of your gift plus you’ll avoid capital gains tax.
  • Greater impact: Because of these advantages, donating securities often lets you give more without increasing your donation.

Key things to know:

  • Securities must be transferred to True Patriot Love in kind (not sold first).
  • The gift must be of “qualified” appreciated securities (including shares, mutual fund shares, segregated fund shares, bonds, warrants), and options listed on a prescribed stock exchange.
  • There’s no minimum or maximum transfer amount.

3. Carry Forward Donations for Up to 5 Years

You don’t have to claim all your donations in the year you make them. If your donations are above $200, you can carry them forward for up to five years. This flexibility allows you to:

  • Save credits for a higher-income year
  • Potentially qualify for a larger deduction in the future.

4. Pool Donations with Your Spouse or Partner

Donation tax credits are non-refundable, meaning they can’t reduce your taxes below zero.

As a non-refundable tax credit, it can only be used to reduce tax owed; if you don’t owe any tax, you don’t get a refund.

If you can’t use all of your credits, you can transfer them to your spouse or common-law partner. Pooling donations can often result in a larger overall credits, you can transfer them to your spouse or common-law partner. Pooling donations can often result in a larger overall credit.

5. Keep the Limits in Mind

You can claim donations of up to 75% of your net income in a single year. If your generosity exceeds that cap, don’t worry—you can carry the remaining amount forward to use in future years.

Maximizing your Impact

Donating to charity is one of the most rewarding ways to give back, but it can also be a smart financial decision. By taking advantage of federal and provincial credits, eliminating capital gains taxes through securities, or exploring planned giving options, you can maximize your impact while reducing your tax burden.

Interested in learning more? Click here to find out more about how to give a gift of securities or annuities to True Patriot Love. You can also reach out directly to Meighan Bell, Chief Development Officer, at mbell@truepatriotlove.com.

Disclaimer: Other credits or restrictions may also apply, such as those related to your total income and additional considerations for residents of Quebec and Alberta. This information is general in nature and does not constitute legal or financial advice. True Patriot Love Foundation recommends that before making any gift of securities of any size, a donor consults with their professional financial advisor(s) for the tax, financial and/or estate planning implications. Individual circumstances differ and you are strongly encouraged to discuss with your own financial counsel to ensure your gift decisions are appropriate to your situation.