The current political uncertainty in Ottawa has raised questions about the future of several key pieces of legislation. The Canada Revenue Agency took steps yesterday to provide clarity around one popular tax measure by confirming its intent to administer the federal charitable donation deadline extension. This came after the Department of Finance released draft legislation supporting the extension.

The federal government first proposed the change in the wake of the four-week Canada Post strike that slowed mail delivery to a crawl and was a likely factor behind the significant decline in mail-in donations reported by many charities. Some charitable organizations saw donation dips of as much as 50 per cent over the critical holiday season.

The donation deadline extension would give Canadians until February 28^th, 2025, to donate to a qualifying registered charity (or qualified donee, in CRA’s terminology) to be eligible to claim the contribution on their 2024 tax return. The charitable donation deadline was originally set for December 31^st, 2024.

The CRA is instructing charities and qualified donees to issue official donation receipts according to the usual receipting rules, while noting that a “charity or other qualified donee is not required to issue official donation receipts specific to the extension period.”  However, the CRA is encouraging charities to detail receipts incurred during the extension period as a courtesy to its donors.

Donors will be permitted to claim the “eligible amount of certain gifts made to charities and other qualified donees up to February 28, 2025, on their 2024 personal income tax return,” with some exceptions. Gifts to charities made up until February 28^th, 2025, that are not claimed on a donor’s 2024 personal income tax return may be claimed on their 2025 return or carried forward. The CRA also clarified that corporation donations and graduate rate estates with a tax year ending after November 14, 2024 and on or before December 31, 2024, will qualify for the charitable donation deadline extension. Note that planned or non-cash gifts (e.g., an in-kind gift of publicly-listed securities), or those made through payroll deductions, will not be eligible for the extension.

Unlike the proposed capital gains inclusion rate increase—which even some Liberal leadership hopefuls seem to be renouncing as they vie for control of their party—the charitable deadline donation extension seems to have multi-party support and is likely to survive a possible change in government. But much could change between now and the spring. At least at this point, it looks like Canadians will have extra time to claim charitable donations for the 2024 tax year.

As always, expect regular updates on this and other proposed tax legislation as the situation develops.

The RH Partners Tax Team

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