Did you know that Canadians are increasingly showing their generosity by contributing to various charitable organizations with supplies, time and money. Revenue Canada has made giving monetary support to charities even better with tax incentives.

• If you donate $200 or less to Canadian charities this year, your income tax will be reduced by at least 25cents for every dollar you donate.
• For any amount you donate beyond that intitial $200, your taxes will be reduced by 40cents by every dollar. So if you donate $500, you will save $50 on the initial $200 and then at least $120 on the other $300. That's a savings of at least $170!

Many Canadians underestimate the real value of tax credits for charitable donations because of the complex way they are calculated.

Here is how it works:

1. Donations of $200 or less reduce basic federal taxes by 17 percent of the amount donated.
   
2. Donation amounts above $200 reduce basic federal taxes by 29 percent of the amount donated.
   
3. Provincial income taxes are calculated as a percentage of basic federal taxes, so the federal tax credit reduces provincial income taxes, too (except in Quebec, where donations get a separate provincial tax credit.)
   
4. Federal and provincial surtaxes are also calculated as a percentage of basic federal taxes, which further increases the value of the tax credit or charitable donations.
   
5. The tax break for charitable donations is a credit, not a deduction from taxable income-it's subtracted directly from your taxes.

For more information, you can visit the { Revenue Canada website } and at all times seek the advice of professional tax advisors.