The Government of Canada released today draft legislation to extend the 2024 charitable donations deadline to February 28, 2025. The government will introduce the draft legislation in Parliament at some point but at least the draft is available. Finance will not be consulting on this draft legislation because of the tight timelines involved.
This proposal had many people wondering about some of the details, and now the draft legislation is available, so some of the questions will be answered.
Here are some of the points that may be of interest:
a) this donation extension will apply to “cash” or “was transferred by way of cheque, credit card, money order or electronic payment”. It, therefore, will not apply to gifts in kind, such as donations of marketable securities or land, etc.
b) It will not apply to payroll deductions
c) It will not apply to a bequest if the individual dies after 2024.
d) CRA is applying s. 248 (7) of the ITA (as pointed out to me by the great tax lawyer David Sherman) so that “For donations sent by mail, we consider the date of the postmark on the envelope as the date of donation. The qualified donee should keep the stamped envelope as part of its books and records.” If this is the case, some charities will perhaps be waiting till mid-March to issue receipts, which is unfortunate. I strongly recommend that any donor who wishes to have a January/February receipt in time for their accountants does not procrastinate till Feb 28 and then send it by mail!
e) It confirms that the T3010 will not be affected by this change.
f) It confirms that if a charity is going to issue receipts at any point, then “it should continue to issue official donation receipts according to the receipting rules.”
g) This change applies to individuals, corporations and some estates.
The CRA has added further information on their views on the Charity and Giving homepage. This is from CRA:
Extension for making 2024 charitable donations to February 28, 2025
The CRA will proceed with administering the extension for 2024 charitable donations, which extends the deadline for making donations eligible for tax support in the 2024 tax year to February 28, 2025. Charities and other qualified donees should continue to issue official donation receipts according to the receipting rules.
For more information, go to Extension of the deadline for making 2024 charitable donations.
Registered charities play a vital role in Canadian society, offering a remarkably diverse range of services to people in our country and around the world. They work tirelessly to provide food and shelter to people experiencing poverty, operate schools, offer religious services, and run hospitals, among other charitable activities. However, they could always use more help.
When you support charities, you help make a positive impact on the daily lives of all Canadians, including your own.
Before you contribute, it’s important to choose the right organization. By making a donation to a registered charity or other qualified donees, you can be confident that your donation will be used effectively and that the organization is eligible to issue official donation receipts.
This press release is from the Finance Department:
Government of Canada releases draft legislation to extend 2024 charitable donations deadline
News release
January 23, 2025 – Ottawa, Ontario – Department of Finance Canada
Today, the Department of Finance released draft legislation (and related explanatory notes) to amend the Income Tax Act to extend the deadline for making donations eligible for tax support in the 2024 tax year to February 28, 2025.
This draft legislation provides further details on how the extended deadline will be applied and which types of donations will be eligible. Given the need to provide taxpayers with certainty as to how donations made during the extension period will be treated, the Department of Finance is not soliciting feedback on the draft legislation.
Canada’s charities work tirelessly to address poverty and hunger, improve socioeconomic outcomes for Canadians, and keep communities connected and informed. Many charities depend on the generous donations of Canadian individuals and businesses, particularly those made during the holiday season, to carry out this valuable work. This extension will help mitigate the impacts of last year’s Canada Post mail stoppage by providing donors with sufficient time to ensure their contributions are received and processed, helping charities to continue delivering vital services to the communities that depend on them.
The government will introduce the legislation in Parliament effecting these changes in due course.
Quick facts
- There are approximately 86,000 registered charities in Canada, each carrying out activities in support of one or more of the four recognized categories of charity—the relief of poverty, the advancement of education, the advancement of religion, and other purposes beneficial to the community.
- The Government of Canada understands that registered charities are an important part of Canadian society, and it encourages Canadians to donate generously through the Charitable Donation Tax Credit for individuals and the deduction for charitable donations for corporations.
- Federal tax assistance for donations to registered charities and other qualified donees is projected to be almost $5 billion for 2024.
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Associated links
Draft legislative proposals related to the Income Tax Act (Charitable donations)
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1 (1) Section 110.1 of the Income Tax Act is amended by adding the following after subsection (17):
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Marginal note:2024 — extension of time
(18) For the purposes of applying this section, a gift made by a taxpayer before March 2025 and after the end of a taxation year of the taxpayer that ended after November 14, 2024 and before 2025 (referred to in this subsection as the “donation year”) is deemed to have been made by the taxpayer in the donation year and not in the taxpayer’s 2025 taxation year, if
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(a) the gift would be deductible under this section in computing the taxpayer’s taxable income under Part I for the donation year if it were made immediately before the end of that year;
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(b) the taxpayer deducts the amount of the gift under this section for the taxpayer’s donation year; and
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(c) the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment.
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Marginal note:
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2 (1) Section 118.1 of the Act is amended by adding the following after subsection (28):
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Marginal note:2024 — extension of time
(29) For the purposes of applying this section, a gift made by an individual before March 2025 and after the end of a taxation year of the individual that ended after November 14, 2024 and before 2025 (referred to in this subsection as the “donation year”), is deemed to have been made by the individual in the donation year and not in the individual’s 2025 taxation year, if
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(a) a credit for the gift would be deductible under this section in computing the individual’s tax payable under Part I for the donation year if it were made immediately before the end of that year;
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(b) the individual claims the amount of the gift under subsection 118.1(3) for the donation year;
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(c) the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment; and
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(d) the gift was not made
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(i) through a payroll deduction, or
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(ii) if the individual died after 2024, by the individual’s will.
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Explanatory notes related to the Income Tax Act (Charitable donations)
Preface
These explanatory notes describe proposed amendments to the Income Tax Act. These explanatory notes describe these proposed amendments, clause by clause, for the assistance of Members of Parliament, taxpayers and their professional advisors.
These notes are intended for information purposes only and should not be construed as an official interpretation of the provisions they describe.
2024 Extension
ITA
110.1(18)Section 110.1 provides rules for calculating the deduction in computing the taxable income of a corporation in respect of gifts made by the corporation to qualified donees.
In response to the 2024 postal strike that began on November 15, 2024, new subsection 110.1(18) extends the deadline for making donations eligible for deduction in the 2024 tax year, until February 28, 2025. This new subsection will provide that gifts made before March of 2025 are deemed to have been made in a taxation year of a taxpayer that ends after November 14, 2024, and before 2025 (the “donation year”), and not in the taxpayer’s 2025 taxation year, if
- the gift would be deductible under section 110.1 in computing the taxpayer’s taxable income under Part I for the year if it were made immediately before the end of the donation year;
- the taxpayer deducts the amount of the gift under this section for the taxpayer’s donation year; and
- the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment.
2024 Extension
ITA
118.1(29)Section 118.1 provides a tax credit to individuals in respect of certain gifts made to qualified donees.
In response to the 2024 postal strike that began on November 15, 2024, new subsection 118.1(29) extends the deadline for making donations eligible for determining an individual’s charitable donation tax credit for the 2024 tax year, until February 28, 2025. This new subsection will provide that gifts made before March of 2025 are deemed to have been made in a taxation year of an individual that ends after November 14, 2024, and before 2025 (the “donation year”), and not in the individual’s 2025 taxation year, if
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a credit for the gift would be deductible under section 118.1 in computing the individual’s tax payable under Part I for the year if it were made immediately before the end of the individual’s donation year;
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the individual claims the amount of the gift under subsection 118.1(3) of the Act for the individual’s donation year;
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the gift was a gift in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment; and
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the gift was not made
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through a payroll deduction, or
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if the individual died after 2024, by the individual’s will.
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Extension of the deadline for making 2024 charitable donations
On December 30, 2024, the Department of Finance announced the federal government’s intention to amend the Income Tax Act to extend the deadline for making charitable donations eligible for tax support in the 2024 tax year.
Following this, on January 23, 2025, the Department of Finance announced that it had released draft legislation in support of this proposed change, which will be introduced in Parliament in due course. For more information, visit Draft legislative proposals and explanatory notes related to the Income Tax Act (Charitable donations).
To help provide certainty as we head into tax season, the Canada Revenue Agency (CRA) is confirming that it will proceed with administering the 2024 deadline extension for charitable donations. The CRA is administering this proposed legislation, consistent with its long-standing practice.
What to do as a taxpayer that makes charitable donations
The proposed legislation offers donors the option to claim/deduct certain charitable donations made up to February 28, 2025, on their 2024 income tax return. Please see the Department of Finance website for details of certain exceptions.
For individuals
Individuals may claim the eligible amount of certain gifts made to charities or other qualified donees up to February 28, 2025, on their 2024 personal income tax and benefit return. The gift must be in the form of cash, cheque, credit card, money order, or electronic payment. The gift cannot be made through a payroll deduction or by an individual’s will, if the individual died after 2024.
Keep your official donation receipts in case the CRA asks to see them.
If you do not claim gifts made to charities or other qualified donees up to February 28, 2025, on your 2024 personal income tax and benefit return, you can still claim the amount on your 2025 return or carry forward the amount. For more information, go to P113 Gifts and Income Tax.
For graduated rate estates
For the purposes of the 2024 charitable giving extension, a graduated rate estate (GRE) must have a taxation year that ended after November 14, 2024, and before January 1, 2025. A GRE that meets this taxation year end condition and makes a gift to a charity or other qualified donee before March 2025 may choose to claim the eligible amount of the gift on its 2024 trust income tax and information return.
Keep your official donation receipts in case the CRA asks to see them.
If a GRE does not deduct gifts made to charities or other qualified donees up to February 28, 2025, on its 2024 trust income tax return, it can still deduct the amount on its 2025 return or carry forward the amount. For more information, go to P113 Gifts and Income Tax.
For corporations
For the purposes of the 2024 charitable donations extension, corporations must have a taxation year that ended after November 14, 2024, and before January 1, 2025. A corporation that meets this taxation year end condition and makes a gift to a charity or other qualified donee before March 2025 may choose to deduct the eligible amount of the gift on its 2024 corporate income tax return.
Keep your official donation receipts in case the CRA asks to see them.
If a corporation does not deduct gifts made to charities or other qualified donees up to February 28, 2025, on its 2024 corporate income tax return, it can still deduct the amount on its 2025 return or carry forward the amount. For more information, go to P113 Gifts and Income Tax.
What to do as a charity or other qualified donee that issues donation receipts
There is no requirement in the Income Tax Act for a registered charity or other qualified donee (qualified donees) to issue an official donation receipt or that it issue a receipt within a certain timeframe.
However, if your organization chooses to do so, it should continue to issue official donation receipts according to the receipting rules.
A qualified donee is not required to issue official donation receipts specific to the extension period. However, it may wish to do so as a courtesy to its donors, if they generally receive only one annual receipt for multiple donations.
Determining the date of donation
Qualified donees can determine the date of donation as follows:
- For in-person donation or electronic transactions, the date of donation is the date the qualified donee receives the gift.
- For donations sent by mail, we consider the date of the postmark on the envelope as the date of donation. The qualified donee should keep the stamped envelope as part of its books and records.
Example: Donation received in the mail
A qualified donee receives a donation in the mail on January 10, 2025. The envelope is postmarked December 28, 2024.
The qualified donee may issue an official donation receipt with the date of donation as December 28, 2024.
Example: In-person or electronic donation
A qualified donee receives a donation by cash, cheque, credit card, money order, or electronic payment on January 10, 2025.
The qualified donee may issue an official donation receipt with the date of donation as January 10, 2025.
Reporting tax-receipted revenue on the T3010, Registered Charity Information Return
The extension will not affect how your charity reports tax-receipted revenue on its 2024 and 2025 T3010, Registered Charity Information Return.
All official donation receipts issued during your charity’s 2025 fiscal period should be reported on its 2025 T3010 information return.
These reporting guidelines also apply to the annual information returns for registered journalism organizations and registered Canadian amateur athletic associations.
Example: Filing your T3010 in 2025
Consider a charity with a fiscal period of January 1 to December 31.
- Between January 1, 2025, and February 28, 2025, the charity issued $5,000 in receipts for donations received.
- Between March 1, 2025, and December 31, 2025, it issued $60,000 in receipts for donations received.
The charity would report its tax-receipted revenue as $65,000 on Line 4500 of its 2025 information return.
Keeping good books and records
Qualified donees must maintain detailed and organized records of their activities. While not mandatory, it is a good practice to:
- keep all postmarked envelopes of donations received by mail
- document which receipts were issued during the extension period
These steps can help qualified donees respond to enquiries from donors or the CRA.
For more information, go to Books and records.
Stay updated
We will share any updates related to the extension of 2024 charitable donations on this web page and/or through our electronic mailing list (EML) once they are available.
We encourage you to subscribe to our EML so that you can stay informed on any new and updated content for charities, including regulatory and legislative changes, and guidance products.