Canadian Moneysaver, Evgeniya Samartseva
Cash gifts are the most common way to donate to charity. The donor receives a tax credit, rather than a tax deduction on the donated amount. The tax credit on the first $200 donated is calculated using the lowest federal marginal tax rate (15%). The tax credit on donations in excess of $200 is calculated using the highest federal marginal tax rate (29%). Provincial tax credits vary between provinces and territories.