The deadline on 2024 tax credits for charitable donors has been extended until Feb. 28, the Canada Revenue Agency says.
The decision was prompted by concerns from charities nationwide that a halt in postal services before Christmas hindered their ability to receive contributions during their peak season, the CRA said in a statement first covered by Blacklock’s Reporter.
The legal deadline for claiming credits on charitable contributions made in 2024 typically concludes on Dec. 31.
This year, however, taxpayers can claim “the eligible amount of certain gifts made to charities and other qualified recipients up to Feb. 28, 2025 on their 2024 personal income tax return,” the agency said.
The tax advisory was issued shortly after the department of finance announced it had prepared legislation aimed at extending the tax year specifically for charity tax credits. Parliament has been prorogued until March 24, during which time no new legislation can be introduced or enacted.
Legislation will be introduced in Parliament to implement the changes “in due course,” the department said in a statement.
“Many charities depend on the generous donations of Canadian individuals and businesses, particularly those made during the holiday season, to carry out this valuable work,” the statement said.
“This extension will help mitigate the impacts of last year’s Canada Post mail stoppage by providing donors with sufficient time to ensure their contributions are received and processed, helping charities to continue delivering vital services to the communities that depend on them.”
Charity lobby group Imagine Canada said it engaged in extensive negotiations with the finance department to secure an extension of the tax year prior to the April 30 deadline for Canadians to submit their annual tax returns.
“Many donors and charities have wondered whether the announcement would be honoured if legislation can’t be tabled – let alone passed – prior to the end of February,” the group said in a Jan. 30 statement.
“While technically the extension needs to be passed into law, the government is able to direct Canada Revenue Agency to administer changes to these kinds of rules before Parliament approves the changes retroactively.”
Some charities say the month-long postal strike cost them a large portion of their yearly donations.
The Salvation Army said 65 percent of its annual contributions are received between Nov. 1 and Dec. 31 each year.
“During this time, we depend on direct mail campaigns to engage donors and acquire new support,” Salvation Army territorial secretary Lieut.-Colonel John Murray said in a Dec. 9 press release. “With 2.5 million pieces of direct mail currently stopped due to the strike, our holiday fundraising has already fallen by 50 percent.”
The postal strike began on Nov. 15, 2024, when approximately 55,000 workers walked off the job. It officially ended on Dec. 17.
