Tax Benefits for Donations
Donate to Ballets Jazz Montréal and pay less in taxes !
An overview of Quebec tax credits
Donations to recognized cultural organizations in Quebec are not only a way to support culture, but also an opportunity to optimize your taxes. Provincial and federal tax credits make these contributions even more attractive. Whether you're a regular donor or planning to make a major gift, it pays to take advantage of these tax incentives.
AT THE PROVINCIAL LEVEL
In Quebec, donations to recognized cultural organizations are eligible for advantageous tax credits. These tax measures aim to support the financing of Quebec cultural organizations by encouraging donors to contribute generously. Here is an overview of the applicable rates:
Tax credit for charitable donations and other gifts:
For the first $200 donated: the rate is 20%.
For the portion of donations exceeding $200: the rate is 24%. However, if taxable income exceeds the threshold for the fourth level of taxation, the rate applicable to this portion may be as high as 25.75%.
FIRST MAJOR CULTURAL DONATION
Additional tax credit for major cultural donations: If you make a cash donation of an eligible amount between $5,000 and $25,000 to an eligible cultural organization, you can benefit from an additional tax credit of 25% on this donation. This credit is in addition to the tax credit for charitable donations and other gifts. It is important to note that this additional credit can only be claimed once per individual.
Tax credit for cultural patronage donations
For those who wish to make an even more significant gesture:
For cash donations of at least $250,000 made to the same eligible cultural donor, an additional tax credit of 30% is available. This credit is designed to encourage major contributions in the cultural field.
AT THE FEDERAL LEVEL
Au niveau fédéral, les dons effectués à des organismes de bienfaisance enregistrés, y compris les organismes culturels, donnent droit à un crédit d'impôt non remboursable. Ces crédits d'impôt visent à encourager les contributions aux organismes de bienfaisance, y compris ceux œuvrant dans le domaine culturel, en offrant des avantages fiscaux aux donateurs.
The applicable rates are as follows:
For the first $200 of donations, the rate is 15%.
For donations exceeding $200: the rate is 29%.
However, if taxable income exceeds the threshold of the highest tax bracket, the rate applicable to this portion may be as high as 33%.
It's important to note that the total amount of donations for which you can claim a tax credit generally cannot exceed 75% of your net income for the year. However, this limit may be higher in certain specific situations, such as donations of certified cultural property.
A PRACTICAL ILLUSTRATION
Let's say you make a $1,000 donation to Ballets Jazz Montréal before the end of the fiscal year. Here's how your tax credits would be calculated:
Calculation of federal credit:
For the first $200: $200 × 15% = $30
For the next $800 ($1,000 - $200): $800 × 29% = $232
Total federal credit: $30 + $232 = $262
Calculation of provincial credit:
For the first $200: $200 × 20% = $40
For the next $800: $800 × 24% = $192
Total provincial credit: $40 + $192 = $232
Total tax credit:
262$ (federal) + 232$ (provincial) = 494$
A donation of $1,000 reduces your income tax payable by $494.
To find out more about current tax measures, please visit the following links:
A tax receipt will be issued instantly.