Only Canadian Citizens or Permanent Residents (as defined in subsection 2(1) of the Immigration and Refugee Protection Act) are eligible contributors to a federal political entity such as the Liberal Party of Canada. It is illegal for any donor to be partially or fully reimbursed for their donation(s) by any individual or organization. Donations cannot be accepted from corporations, trade unions or associations. The Canada Elections Act imposes three separate limits for federal political contributions from individuals.
No individual shall contribute cash in an amount that exceeds $20.00. Both monetary and non-monetary contributions are subject to the contribution limits set out in the Canada Elections Act. The commercial value of goods or services with a value of $200.00 or less that are provided free of charge by an individual who does not normally supply these goods or services commercially is deemed to be nil– it is neither a contribution nor an expense. Non-monetary contributions are not eligible for a receipt for income tax purposes.
Your financial participation in the democratic process can be partially deducted from your payable federal tax.
Monetary contributions to an eligible federal political entity are eligible for a receipt for income tax purposes. This includes contributions made to the Liberal Party, an Electoral District Association (Riding), a candidate during an election or a contribution made to a Liberal leadership contestant as a directed contribution through the Liberal Party.
Contributions made to nomination contestants, nominated candidates outside of the election period and contributions made directly to a Leadership contestant are not eligible for a receipt for income tax purposes.
Federal political tax credits may be applied to tax otherwise payable in the year the contribution is made and may only be claimed by the contributor.
Here are some examples of tax credits you may be eligible for (*based on annual federal contribution):