Guide to the Extended 2024 Charitable Tax Donation Deadline

The federal government recently extended the deadline to make 2024 charitable donations. This means income tax credits for donations made up until February 28, 2025, can be claimed on 2024 tax returns or applied to a 2025 tax return.

The extension presents an exciting opportunity for Canadian charities to extend their 2024 fundraising efforts, and increase fundraising overall. 

As the economy faces an uncertain climate – including a looming threat of tariffs, heightened demand for charitable services, and a possible recession. We must stay abreast of changes, be nimble, and be prepared to pivot and respond to the opportunities and challenges thrown our way.

Continue reading as we delve into what this new tax deadline looks like, and learn how charities can use the extension to raise more and have a bigger impact.

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Read on to Learn:

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After several weeks of speculation, the federal government officially extended the 2024 charitable tax deadline. Canadians can now donate between January 1st - February 28th, 2025 and choose to claim charitable tax credits on their 2024 or 2025 personal income tax filings.

• On December 30, 2024, the Department of Finance announced the government’s intention to extend the deadline for making charitable donations eligible for tax support in the 2024 tax year.
• Following this, Parliament was prorogued until March 24, 2025, delaying the formal legislative process.
• On January 23, 2025, the Department of Finance released draft legislation to support extending the donation deadline.
• On January 23, 2025 Canada Revenue Agency confirmed that they will apply the proposed legislation and extend the 2024 charitable tax deadline to February 28th, 2025.

Please take note, however, that donations of securities are not included in the 2024 charitable tax deadline. This new legislation covers donations made in cash, cheque, via electronic payment systems, or as money orders. This means gifts of securities, ‘in kind’ donations, payroll deductions, or bequests from individuals who have passed away after 2024 are excluded from the current legislation. 

To learn more about eligibility rules, visit the Canada Revenue Agency's website.

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This extension aims to mitigate the impacts of the late 2024 Canada Post mail stoppage on charities and on generosity across Canada. The extension gives donors and charities extra time to ensure their contributions can be made, received, or processed.

Direct mail is a cornerstone of charitable fundraising, especially across the end-of-year period. Last year, many charitable organizations bore the brunt of the postal disruption. 

For example, a 2024 Ipsos survey conducted by CanadaHelps revealed that nearly 50% of Canadians who mail in donations did not move to online giving in 2024. With this statistic in mind, charities should consider the untapped donation potential within their base and how it can be leveraged during the extension window.

Have you shared with your supporters how much the Canada Post strike has impacted your organization? If you haven’t, now is the time!

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The extension presents an important opportunity for Canadian charities to increase fundraising efforts, and account for losses that may have incurred during the postal services disruption. 

Since we can’t know if this tax deadline extension will be renewed again in the coming years, it’s crucial charities act now and maximize the opportunity. 

In the remaining days until February 28th, here is your strategic guide to making the most of the extension as a strategic fundraising opportunity:

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To maximize fundraising potential, it's crucial you communicate the extended deadline with donors. 

Use a multi-channel communication strategy that incorporates these touchpoints:

• Email
• Direct mail
• Phone

Depending on location and financial circumstances, Canadians can receive up to 49% back on their donation during tax filing.

Additionally, the new deadlines create a sense of urgency, which is a powerful tool for fundraising. The majority of donations come in the last 24-24 hours before a deadline.

Your messaging should emphasize two key points:

1. The tax benefits of making charitable donations 
2. The extended deadline for making 2024 charitable donations

‍Tip: show your supporters how much they can get back by leveraging CanadaHelps tax calculator.

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Update your digital assets to reflect the tax deadline extension. You want to keep your potential donors informed about your fundraising goals. 

Consider embedding a countdown clock on your website or in an email, to update your supporters on fundraising progress and create that sense of urgency.

Digital assets to update messaging on:

• Donation landing page
• Topline banner on your website
• Social media

Updates within your Donation Form:

• Include messaging about the extension
• Clarify that donations are eligible for a 2024 charitable tax receipt
• Communicate your fundraising goal and progress by using the thermometer on your Donation Form 

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Charities should continue with their normal tax-receipting processes. 

The Donee will choose whether to claim the donation for 2024 or 2025 income taxes, similar to RRSPs. Read more on CRA guidelines for charities. 

Timeline breakdown:

• December 1-31, 2024: Donations fall under the 2024 tax year
• January 1-February 28, 2025: Donees can use receipts for either 2024 or 2025
• March 1, 2025, onwards: Donations are for the 2025 tax year

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Use this extended period to reach out to potential donors who didn’t give over the 2024 Holiday Season. This group of donors might appreciate the extended planning window.

How to target the specific groups of donors:

• Log into your CanadaHelps charity account 
• Download and pull reports
• Use this data to reach out to donors who haven’t donated since 2023

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For the upcoming tax season only, the new deadline to make 2024 charitable gifts is February 28th, 2025. This extension is an opportunity for charities that can't be missed!

By communicating with donors, updating their digital assets, and making the right administrative preparations, charities can harness this unique situation effectively.

Let's turn this extension into a positive force for bolstering our causes and communities! 

Ensure your organization keeps updated on the latest developments. If you encounter complex questions, consult with legal and financial advisors for guidance about your organization's unique circumstances.

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For more advice, watch CanadaHelps’ webinar on how to leverage the charitable donation tax extension, alongside two fundraising experts.