VEMS is a CRA registered charity and we rely on generous people. Donate pages like this one abound. But how does it work. Assuming you pay tax on every pay cheque, some of your charitable donations reduces the tax you pay.
For example, if for an entire year, you donate $250 to charities that issue receipts and are CRA registered the reduction in tax works like this:
Province | Tax Credit on first $200 donated | Tax Credit on amount over the initial $200 | Total Tax Savings | After-Tax Cost to you |
Alberta | $150.00 | $25.00 | $175.00 | $75.00 |
BC | $40.12 | $22.90 | $63.02 | $186.98 |
Nova Scotia | $47.58 | $25.00 | $72.58 | $177.42 |
Ontario | $40.10 | $20.08 | $60.18 | $189.82 |