Claiming Charitable Donations 2025

Giving back should feel rewarding, not risky. Yet every year, thousands of Canadians lose valuable charitable tax credits or face CRA reassessments because they file incorrect donation claims, use invalid receipts, or donate through unregistered organizations. In 2025, CRA and Revenu Québec are enforcing stricter verification procedures on charitable contributions, automatically cross-checking all donations with official charity databases. A single incorrect claim can delay your refund, trigger penalties, or disqualify you from future credits.

Charitable giving is one of the most powerful ways to reduce your taxes while making a difference—but only when it’s done right. CRA allows you to claim up to 75% of your net income in eligible donations, with enhanced credits for donations over $200. But the rules are precise. At Mackisen CPA Auditors Montreal, we ensure every dollar you give counts—accurately, legally, and to its fullest tax advantage.

Legal and Regulatory Framework

Income Tax Act (Canada)
Section 118.1: Defines the Charitable Donations Tax Credit (CDTC) and eligible donees.
Section 110.1: Allows corporations to deduct charitable gifts up to 75% of net income.
CRA Charities Directorate: Oversees registration of recognized charities and validation of donation receipts.
Section 162(5): Provides penalties for filing incorrect or fraudulent donation claims.

Tax Administration Act (Quebec)
Requires Quebec residents to claim provincial charitable tax credits separately (Schedule V).
Offers an additional 20% credit on the first $200 and 24% thereafter for qualifying donations.

Mackisen works with individuals, families, and corporations to ensure that all charitable contributions are documented, verified, and optimized. We review receipts, validate charity registration numbers, and structure giving strategies that maximize your refund while keeping you fully compliant with both CRA and Revenu Québec.

Key Court Decisions

Guindon v. Canada (2015): Filing inaccurate donation claims, even unknowingly, leads to enforceable CRA penalties.
Venne v. The Queen (1984): Ignorance of the law is not a valid excuse for claiming ineligible contributions.
Maréchaux v. The Queen (2010): Charitable tax shelters or inflated donation receipts are disallowed and may lead to penalties.

These rulings reinforce that documentation and due diligence are essential in claiming charitable tax credits.

Why Charitable Donations Matter

Claiming donations correctly can save you hundreds—or thousands—on your taxes each year. The federal and Quebec systems provide generous credits for those who give responsibly. However, CRA’s audit algorithms now automatically compare claimed donations against the Charities Directorate’s registry, making fraudulent or inaccurate claims easily detectable.

Federal Donation Credit Structure (2025):

• 15% credit on the first $200 of donations

• 29% on amounts over $200 (33% for income over $250,000)

Quebec Donation Credit Structure (2025):

• 20% credit on the first $200

• 24% on donations exceeding $200

Common CRA Triggers in 2025:

• Donating to unregistered or revoked charities

• Claiming inflated donation amounts from tax shelter schemes

• Failing to retain original official receipts

• Double-claiming the same donation between spouses

• Filing donation claims without supporting documentation

Mackisen ensures all receipts and donation amounts are verified before filing—protecting you from CRA and Revenu Québec audits.

Mackisen’s Charitable Giving and Tax Optimization Strategy

1. Receipt Validation: Confirm all charities are registered with CRA and issue compliant receipts.

2. Credit Maximization: Optimize the timing of donations to benefit from higher-tier tax credits.

3. Spousal Planning: Pool donations under the higher-income spouse to increase savings.

4. Carryforward Management: Track unused donations (up to 5 years) for future use.

5. Audit-Ready Documentation: Maintain a secure record of all receipts and acknowledgments for CRA review.

Our process ensures every charitable contribution earns its rightful tax credit—without risk of reassessment.

Real Client Experience

A Montreal couple unknowingly donated to an unregistered organization and faced CRA denial of $4,800 in credits. Mackisen corrected the filing, validated prior-year donations, and recovered 90% of their lost credits.
A small business owner donated appreciated securities without understanding the tax implications. Mackisen structured the transaction to eliminate capital gains and increase total tax savings by $7,200.

Common Questions

Can I claim donations made outside Canada? Only if the organization is registered with CRA or operates under a recognized treaty. Mackisen verifies eligibility.
What if I lost my receipts? CRA requires originals, but Mackisen can help you obtain duplicates or documentation from the charity.
Can I split donations with my spouse? Yes, and strategic pooling can maximize credits for your household.
Are donations of stocks or crypto eligible? Yes, but they must be transferred directly to a registered charity. Mackisen manages these transactions for maximum benefit.

Why Mackisen

At Mackisen CPA Auditors Montreal, we believe that generosity deserves protection. We help clients give with confidence—ensuring every donation is verified, optimized, and fully compliant with Canadian and Quebec tax law. Our experts combine accuracy, integrity, and compassion to help you give back wisely while saving more.

We handle your charitable claims as carefully as you handle your contributions—because good deeds should never become tax risks.

Call Mackisen CPA Auditors Montreal today for your 2025 Charitable Donation and Tax Credit Review. The first consultation is free, and your savings start immediately.