The Gift of Giving

The Gift of Giving

 
While the holidays are often considered a time to give, it’s important that we consider exactly what the gift of giving means. Gifts are a lovely way to show the people close to you how much you care for them, but it can be even more meaningful to donate to a cause close to your heart. That is why today, the Tuesday following Black Friday, has been rebranded Giving Tuesday. So in honour of this global campaign for generosity, we want to remind you that donating to a charity is the gift that gives back!
 
This year more than ever, people are faced with circumstances of financial instability. The COVID-19 Pandemic has put people out of work, reduced certain social programs and services, and as a result many incredible organizations are in need of financial support this holiday season. With so many worthy causes out there, it can feel overwhelming trying to figure out which to contribute to. Here’s our brief list of considerations for making a charitable donation this year.
 
Tax Benefits of a Charitable Donation
Your donation has the power to positively impact the charity of your choice, while also providing tax benefits for yourself. With Canada’s Charitable Donations Tax Credit (CDTC), you can claim your donation on your annual tax return as long as it is made with a CRA registered charity. The larger your donation is, the larger your tax credit. For more tax specific tips, check out our article on how to maximize your charitable tax-credit.
 
Donating Securities
Instead of a cash donation, another great option is to donate publicly listed securities. Donating a stock that has appreciated in the last year means you won’t have to pay tax on the capital gains it has accrued and you will be eligible to deduct the full market value of the asset you donated from your income tax. This means you have the opportunity to make a considerable contribution to a charity, while also receiving a tax-break.
 
Double-Down with Donation Matching
If you want to make your contribution go twice as far, look for a charity that will match your donation. This means every dollar you donate, they will too. This is a great way to double the financial impact you have on a cause and make the most of whatever you can afford to give. Many organizations have donation-match campaigns, especially around the holidays:

 

• The Princess Margaret Cancer Centre will match all donations made this Giving Tuesday up to $85,000.

• The United Way is offering a holiday donation match campaign on contributions made before December 31st. They are an organization that offer social services across the country to help alleviate poverty, hunger, homelessness and even social isolation for people during the pandemic.

• Second Harvest is donation matching up to $300,000 until December 31st. They are one of the country’s largest food banks, delivering millions of meals annually and working hard to feed Canadian this holiday season.

 
Look Local
As the pandemic forced businesses across the nation to close their doors, we have all realized the importance of shopping locally and supporting small-businesses in our community, but it is equally important to support your local charities! Many local  organizations provide services that are essential to supporting their community and addressing their specific needs. Now is a great time to do some research on your local food bank, women’s shelter or homeless shelter to find out exactly what they need this holiday season and how you can help.
 
 
As our Canadian winter gets colder and the holidays quickly approach, remember the impact even a small donation could have on your community. This year, it is especially important to be thankful for our health and to give back in whatever way we can.

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