The Community Spirit Program is a program designed to increase individual private donations to nonprofits and charities in Alberta. There are two components to the program: a donation grant (valued at $19 million in 2009-10) and a charitable tax credit ($80 million in 2009-10).
Donation Grant
Eligible nonprofit organizations and charities that receive donations from individual Albertans can apply for a Community Spirit Donation Grant. The current deadline to apply is December 31, 2010. To apply for a grant, organizations must have received a minimum of $1,000 in eligible cash donations during the 12-month period. Organizations can now apply online.
The grant amount is based on total annual cash donations from Albertans that have been received over a 12-month fiscal period. The grant is flexible and organizations can use it to support their operations, programs and/or capital projects. The maximum grant per year is $25,000 to a maximum of $50,000 over three years.
In 2008-09, the second year of the program, $19 million was granted to 1,741 organizations. This was a 14% increase in recipients from the first year of the program.
Eligibility
Nonprofit organizations and registered charities incorporated and/or registered in Alberta and operating for a minimum of one year that are in good standing under applicable legislation are eligible to apply. Further details about eligibility, uses of the grant and more are available in the program guidelines.
Enhanced Charitable Tax Credit for Donations to Charities
In 2007, Alberta introduced The Enhanced Charitable Tax Credit, non-refundable tax credit to encourage individual Albertans to donate. The charitable tax credit only applies to donations made to Canada Revenue Agency-registered charities.
The tax credit increased the provincial tax credit by more than 60% (to 21%) for total annual charitable donations over $200. When combined with the federal credit of 29%, Albertans will now receive a 50-cent tax credit for every dollar donated over the $200 threshold – one of the highest rates in Canada. The enhanced tax credit applies to donations made since January 1, 2007.
To charities communicate this new tax credit to donors, the Community Spirit Program has developed a detailed Toolkit that includes a charitable Tax Credit Chart, sample fundraising materials and sample media articles and PSAs.