Canadians and DPF donations

Challenges and Achievements The Wahooligan Tour
1

Afternoon everyone,

been trying to wade into the wonderfully murky waters that is taxes and charitable donations in regards to the DPF (who i’ve asked, and aren’t registered within Canada). the tax code seems contradictory (to me at least) in its statements. have any fellow Canadians done more in regards to if DPF donations can be deductible…or is it simply “not worth” the headache?

2 Likes
2

Also Canadian. Also looked. As I understand it, the only way for DPF contributions to be tax deductible as a Canadian would be if you have some US income you are claiming in that tax year.

3

yeah, that’s what im gathering as well.

4

Correct. The Income Tax Act and CRA website and guides /folios both confirm this. It’s a bit of a downer for those donating in Canada, but… we don’t get tax credits for passing food to the homeless either… I digress :thinking::wink:

P. S. I am saving receipts from this year’s tour regardless. A charity’s status and /or tax laws can change at any time.

PPS: For others’ quick reference, from the CRA: " Gifts to U.S. charities

Generally, if you have U.S.-source income, you can claim a gift to a U.S. charity if the charity meets the following conditions:

  • it is generally exempt from U.S. tax
  • it could qualify in Canada as a registered charity if it were a resident of Canada and created or established in Canada

You can claim the eligible amount of your U.S. gifts up to 75% of the net U.S.-source income you report on your Canadian return. However, you may be able to claim the eligible amount of your gifts to U.S. organizations up to 75% of your net world income . You can do this if the gift would be allowed as a deduction under the United States Internal Revenue Code and you meet all the following conditions:

  • you live near the border in Canada throughout the year
  • commute to your principal workplace or business in the United States
  • that employment or business was your main source of income for the year.

Similarly, your claim will also not be restricted to net U.S.-source income if your gift is to a U.S. college or university at which you or a member of your family is or was enrolled in or if your gift is to a registered U.S. university as referenced in the list of qualified donees above."

Source link: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p113/p113-gifts-income-tax.html#P99_6372

(That page is an explanation of the application of Paragraph 110.1(1)(a) of the Income Tax Act …)

1 Like
5

yeah, i’ve been keeping mine as well, one can wishfully hope for change

1 Like
6

I posted about this over in the ToS feedback thread. Perhaps it would be more bureaucratic headache than it’s worth, but it would be great if there could be coordination between the non-profits that serve Parkinson’s patients in all countries where there is a significant Sufferfest community. Besides the carrot of the tax credit, in a world where we are being encouraged to “act locally” fund-raising is an easier sell if the benefits flowed to the local community.