On December 30, 2024, the Federal Government proposed an extension of the 2024 charitable donation deadline from December 31, 2024, to February 28, 2025, allowing taxpayers additional time to make contributions that qualify as 2024 donation tax credits. This change is intended to offset the impact of the Canada Post mail stoppage, ensuring charities receive donations and donors can maximize their tax benefits.
Following Prime Minister Justin Trudeau’s resignation and resulting proroguing of parliament, this deadline extension was unable to be legislated into law. As of January 23rd, draft legislation has been released and will eventually be introduced in Parliament. The Canada Revenue Agency (CRA) has confirmed that it will administer the deadline extension for charitable donations, continuing its practice of administering proposed legislation.
Individuals can now claim eligible charitable gifts made up to February 28, 2025, on their 2024 personal income tax return. Corporate donors can also deduct eligible charitable gifts made up to February 28, 2025, on their 2024 corporate income tax return if the corporation’s year end is between November 15, 2024, and December 31, 2024. Alternatively, gifts made in 2025 can be claimed for 2025 tax purposes in 2026 or carried forward for up to five years. Charitable gifts eligible for the extension include gifts made by cash, cheque, credit card, money order or electronic payment. Of note, charitable gifts of property, also known as “in-kind donations”, are not eligible for this extension.
Charities are not required to issue official donation receipts specific to this extension and may wish to do so as a courtesy to donors.
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