The tax benefits of donating to a mental health charity
When you donate to a charity, you’re doing more than supporting a cause you care about. Your generosity can also provide you with a valuable tax benefit.
For Canadians, donations to registered charities such as Just Us can qualify for a charitable tax credit when you file your income tax return. That means part of your donation can come back to you in the form of reduced taxes, while your contribution helps make mental health support more accessible to people across New Brunswick.
How the charitable tax credit works
When you make a donation to a registered charity, the charity provides you with an official donation receipt. You can use this receipt when filing your tax return to claim the charitable tax credit.
Unlike many tax deductions, a charitable donation credit reduces the amount of tax you owe. The credit is calculated based on the amount you donate and the applicable federal and provincial tax rates.
The exact value of your tax credit depends on several factors, including how much you donate and your individual tax situation. As a result, a $100 donation does not simply mean that you receive $100 back on your taxes. Instead, you receive a tax credit that reduces your overall tax payable.
Find out how much your donation could save you
Wondering what your donation could mean at tax time? CanadaHelps has a handy Charitable Donations Tax Credits Calculator that lets you estimate the potential tax credit associated with your charitable giving. Keep in mind that the calculator provides an estimate. Your actual tax benefit will depend on your personal tax circumstances.
Why donating can be even more meaningful
The financial benefit is only one part of the story.
A donation to Just Us helps support free and low-cost counselling for people who may otherwise struggle to access mental health services. Cost should not be the reason someone has to go without support when they are dealing with grief, anxiety, relationship challenges, life transitions or other difficult circumstances.
Your donation can help make counselling available to individuals, couples and families throughout New Brunswick.
Whether you give $25, $100 or more, every contribution helps us continue providing accessible mental health support to our communities.
Keep your donation receipt
If you make a donation, be sure to keep your official charitable donation receipt. You’ll need it when you claim your charitable tax credit on your tax return.
If you make multiple donations throughout the year, you may also want to keep your receipts together so they're easy to find when it’s time to file your taxes.
For specific information about charitable donation tax credits and how they apply to your personal circumstances, consult the Canada Revenue Agency or a qualified tax professional.
Give today, support mental health tomorrow
A charitable donation is an opportunity to make a meaningful difference today while potentially receiving a tax benefit when you file your return.
Most importantly, your generosity helps create a community where people can access mental health support when they need it.
Download our Charitable Giving Guide to learn about the different ways to donate, including cash, publicly traded securities, and RRSP/RRIF withdrawals, and how each may provide tax advantages.