Impact of Prorogation on the Proposed Extension for Donation Receipts
On December 31, 2024, the federal government announced that it intends to amend the Income Tax Act by extending the donation deadline. This announcement is a welcome relief for charities nationwide, given the significant impact of the postal strike. This change gives Canadians the option to claim their January and February 2025 donations towards their 2024 tax year.
While this proposed extension is subject to Parliament’s approval, the Canada Revenue Agency’s administration of this change is unaffected by the prorogation. The government has confirmed that the CRA is administering this extension based on the news release issued in December. Parliament will be asked to approve this change retroactively when it returns. Approval was granted retroactively in similar past instances of extension.
Given that the CRA is administering extension, fundraisers and charities are encouraged to plan to issue and send charitable receipts to donors for gifts made in January and February 2025 in case donors wish to claim these gifts as part of the 2024 income tax returns.
AFP Canada will continue to update this webpage as new information becomes available. In the meantime, fundraisers and donors with questions are encouraged to consult the December 30 news release for further details.
For more information about receiving donations and issuing receipts, visit charities and giving – Operating a Registered Charity.