It’s summertime in Nova Scotia. That means community fundraisers, local food drives, and festivals that often support a cause. And while giving back always feels good, it can also do something else you might not expect help you at tax time.

Charitable giving is one of the few ways you can directly support something meaningful while reducing your personal tax bill. In other words, it’s the gift that gives twice.

How Charitable Donations Help You Save

When you make a donation to a registered Canadian charity, you receive an official tax receipt. That receipt gives you a non-refundable tax credit, which reduces the amount of tax you owe.

Here’s how it works:

• The first $200 you donate gives you a 15% federal tax credit plus 8.79% from Nova Scotia, for a combined credit of 23.79%.
• Any amount above $200 gets you a 29% federal credit and a 21% provincial credit, for a combined 50% tax credit, possibly more if your income is above $200,000, which qualifies for the 33% federal rate.

Let’s say you donate $1,000:

• The first $200 gets you roughly $48 in tax savings.
• The remaining $800 could save you about $400.
• Total tax credit? Around $448, which means your $1,000 donation only “costs” you about $552 after tax.

Not bad for doing something good.

Maximize the Impact: Strategies That Work

If you want to make the most of your charitable giving, both for the causes you support and your own tax plan, here are some strategies to consider:

1. Pool your donations

If you and your spouse both donate, you can combine your donations on one tax return to maximize the over-$200 tax credit. This works especially well if one partner earns significantly more.

2. Carry forward unused credits

If you give a large amount in one year, you don’t have to claim it all right away. You can carry forward unused donation receipts for up to five years and apply them when you need the tax credit most, like in a high-income year.

3. Donate securities instead of cash

If you donate publicly traded stocks or mutual funds directly to a charity, you pay no capital gains tax on the growth—and you still get a tax credit for the full fair market value. This is one of the most tax-efficient ways to give, especially for high-net-worth individuals or retirees.

4. Consider giving through your will

You can include charitable bequests in your estate plan. Donations made upon death can be used to offset taxes owed on your final return or even reduce probate fees. It’s a powerful way to leave a legacy while reducing the tax burden on your estate.

Why This Matters for Nova Scotians

Nova Scotia has some of the most generous provincial tax credits in Canada. While every province offers charitable tax incentives, our 21% credit on donations above $200 (combined with the federal credit) means you could get back up to 50% of your donation in tax savings.

Whether you're giving to a small-town theatre, a local food bank, or a national charity with roots in Nova Scotia, your donation can go even further when you plan it right.

Real-Life Example

Let’s say you’re a professional earning $150,000 a year. You make a $5,000 donation to a registered Nova Scotia charity. You would receive:

• A federal credit of 29% = $1,450
• A provincial credit of 21% = $1,050
• Total tax savings = $2,500

Your $5,000 donation only costs you $2,500 after tax—and the charity receives the full amount.

Final Thoughts

Giving back feels good, but when done strategically, it also makes smart financial sense.

Whether you're donating $250 or $25,000, charitable contributions can help reduce your tax bill, create a lasting impact, and align your money with your values.

And in a place like Nova Scotia, where community matters, that’s the kind of return on generosity we can all get behind.