Things to consider when making a donation.
Canadians are well known for their charitable hearts. Did you know 82% of Canadians 15 years and older made donations to a charitable or non-profit organization in 2013? And from 2004 to 2013, the total amount of donations made to charitable and non-profit organizations rose from $10.4 billion to $12.8 billion, which is an increase of 23%.1 And with the Government of Canada providing an attractive tax benefit to your charitable dollars, it’s no wonder we’re so happy to help.
With the holiday season fast approaching, you will probably be asked for donations from a number of different charities. Here are some tips for selecting the right charities for you:
Select a charity that matters to you
People donate to charity for many different reasons and to support many different causes. Sometimes it’s to support research, the environment, human rights, animals or something closer to their local community. What matters is that you give to causes that are important to you because those are the ones you’ll want to support for many years to come. And the charity you care about really needs your ongoing support!
Research the charity
Although it’s always good to give, you should try to take a deeper look into the charity or organization you’re donating to beforehand. Some important things to look for include the amount of your money that actually goes towards the end recipient (versus how much goes toward administration costs, marketing, fundraising, salaries, etc.). The charity you are interested in should be able to provide you with financial information upon request, as established charities and not-for-profits tend to be audited on a regular basis.
To find out how much charities spend on different administration and marketing costs, visit the Charity Intelligence website. This site rates charities, so you can see how your charity of choice ranks, as well as if similar charities and not-for-profits might use your charitable donations more effectively.
Maximize your donations
Whenever possible, it’s good to find ways to maximize the amount of money that goes toward your preferred charity. Look into whether the Canadian government has any donation-matching programs, which often occurs when you are donating to a relief organization that is helping in a region that has been impacted by a natural disaster. You should also find out if your company matches employee donations.
One more thing
In an effort to encourage Canadians to continue being generous when it comes to charitable giving, the Government of Canada offers a number of tax incentives on your charitable donations. This is an added benefit to consider when deciding to contribute.