When you make a donation to certain charitable organizations, it is possible that your entire contribution will not be eligible for the Charitable Donation Tax Credit. This is because you must subtract the value of any "advantage" you receive from the organization in return for your donation.
For example, if you made a $500 contribution to a charitable organization and in turn they provided you with tickets to an event that were worth $100, the "advantage" you received was $100. Therefore, the amount of your donation that is eligible for the charitable donation tax credit is $500 – $100 = $400.
The good news is that you don’t have to keep track of this yourself as the tax receipt provided to you by the charity will indicate the amount of the advantage and the eligible amount of your donation that you can claim.
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