Canadians
are very generous when it comes to charitable giving. According to the article
of Charitable Giving by Canadians, 94% of Canadians have made some types
of donations to charitable and non-profit organizations in 2010, 86% have
donated goods and food while 84% have made financial donations. However, There
are more than 85,600 registered charities in Canada, how could you decide which
charity to give? For those who are interested in making a charitable donation,
this article provides step-by-step guidance and advices for new starters.
·
Investigate before your
donation
If you
don’t know where to start for your donation journey, the very first thing you
should do is to find a charitable cause you have the most
compassion for. Ask yourself if you have a special interest in certain social
or environmental issues like addressing poverty and stopping climate changes.
Meanwhile reflecting on your personal life experiences will help you decide
which cause to give, as your particular experience may connect you to a certain
group of people in need. In fact, as mentioned by the same article, feeling
compassion towards people in need is the main reason for making a financial
donation.
Secondly,
do a basic research of the charities related to causes you personally believe
in. Canada Revenue Agency provides charities listings for you to search, you
could also utilize other third party independent websites like Charity
Intelligence Canada which offers rich database and gives
external evaluations and free ratings about charities.
If you
have some interest in one charity, go to its official website to discover more
information including its mission statement, organization value and carrying-on
projects. If you are browsing a website from a Canadian registered charity, you
should be able to view its financial statement and annual report, which shows how
much of their income went to administrative costs, whereas how much
money were used to support its charitable goals. You could have better
knowledge of its program efficiency and financial transparency by digging into
those documents.
Another
information source shouldn’t be neglected is the social media channels. Joining
in the ongoing conversations on these organizations' social media, you will be able
to understand their charity value, engage in their giving community, and find people
who share the same passion. You could also sign up for their newsletter for
their latest news and events.
·
Find new ways to give
Explore
more donation options apart from financial donation, such as donating tangible
goods to a charity store. If you want to donate unwanted household goods,
Charity thrift stores like Goodwills are a good choice. As mentioned
previously, not all donated goods are eligible for tax deduction. Usually the
thrift store will issue a tax receipt based on the fair market value of your
item. Ensure your donated goods are in good condition, and if you donate
useless items, the charities won’t be able to benefit from your donations and such
item will take extra resource to sort and discard them.
Another
option is selling your stuff on charity stores online. Websites like Easy
Charity facilitates people to sell their unwanted products for good causes.
By registering on its site, you can list all kinds of goods for sale and select
certain charities to benefit from the sale. However, they do set a base
donation amount and they prefer high value goods. Also you won’t be able to
claim a tax deduction until your product has been purchased and the donation
dollars has proceeded to the charities. What's more, you could even donate a
vehicle via Donate a Car, whom helps you gift the charities you love by handling
the car for you.
Last but
not least, intangible donation such as donating your time or skills can also
benefit the cause you care about. One simple way is to volunteer in
the charitable events you like. By joining such events
and being actively involving with charities, you can enlarge your network, open
up your mind and get a sense of achievement.
You could even donate your hours or talents on fundraising sites like
Easy Charity. For instance, Easy Charity allows teachers to donate their teaching
hours online, service receivers pay for such service and all revenues generated
from the trade proceed to the charity selected by the service donor.
·
Get Tax deduction
Although
what ultimately motivates donors is the compassion towards people in need or
the charitable causes they believe in, the incentive of getting tax deduction
should not be overlooked. According to the article of Charitable Giving by
Canadians, income tax credit is considered important by 23% of people.
To claim a tax credit or tax deduction,
you need the donation receipt for your donation to a registered charity. Only a
registered charity can issue a tax deduction receipt, the receipt will include
the charity’s Canada Revenue Agency registration number. Therefore you should
make sure the charity has a valid charity registration number or confirm its
register status at CIC. Not all types of donations qualify for charitable tax
credit, volunteering time or skills is not eligible for tax deduction, neither
are donations provided in exchanged for goods, tickets, service or other
advantages.
A
registered charity is not obligated to issue a tax receipt for your donation,
some charities may require a minimum amount of donation for the tax issue.
Consult the charity itself about its tax deduction criteria before donating.
·
Become a sustainable giver
Being a
sustainable giver to the charity will improve the long-term sustainability of
their work. For example, making monthly donations and giving a small amount
each time will create sustainable fundraising flows for charities. Similarly,
charity stores need regular donation of good quality goods to have enough items
at stock. With online charity store, all you need is the frequent updates of
your listing items, which maintains a virtual inventory and generates more
clicks for the online store.
Another
approach is developing advocacy on social media for the charity you support.
Many charities offer social media share buttons on their site. By sharing
charity pages to your social network, you help them to increase their exposure
and reach new audience on social media.
You
could even start a fundraising event to support your charity on social media.
When creating a fundraising page, it is important to create a sharable
call-to-action post to spread your message. Don’t forget share your own story
in supporting the charity, and you might want to talk about how your
experiences inspired your charity contribution and how you become part of the
charity community.
You want
to make a difference by donating to a good cause, but there is no need to waste
your money and time on an inefficient charity who fails to create any impact. Think
twice and do your research before donating to a charity. Make the most of the
donation by being a smart and effective giver, so you can maximize your
charitable contribution whist benefit the charity you like.