Finance extends deadline for 2024 charitable donations

Before Monday’s announcement, charitable donations had to be made by Dec. 31 to receive a tax receipt for 2024.

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“This is a very welcome change,” said Jamie Golombek, managing director, tax and estate planning with CIBC Private Wealth in Toronto, in an email. “It will give those who get a head start on their 2024 tax return preparation in mid- to late-February a final chance to reduce or even eliminate taxes owing by making a donation by the Feb. 28 extended deadline.”

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Golombek lists charitable giving among his 2024 year-end tax tips, detailed in an article earlier this year.

For example, gifting publicly traded securities with accrued capital gains “in kind” to a charity or foundation entitles the taxpayer to a tax receipt for the fair market value of the securities donated and also eliminates capital gains tax, he wrote.

Such a donation is an attractive tax-planning opportunity for investors with significant gains in non-registered accounts. The elimination of capital gains would also benefit taxpayers with gains exceeding $250,000, given the proposed increase in the capital gains inclusion rate to two-thirds (from one-half) for individuals with gains above that threshold.

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To implement the deadline extension for 2024 charitable donations, the government said it will introduce an amendment to the Income Tax Act when Parliament returns in the new year. The House of Commons resumes sitting on Jan. 27.

Federal tax assistance for donations to charities and other qualified recipients is projected to be almost $5 billion for 2024, Finance’s release said.