A charity by definition is an organization that is set up to help those in need. In order for charities to fulfill this mandate, they require funding from either the public and/or Government. Many of us are in a position to give a little back to society. Many individuals choose to demonstrate their support through monetary contributions while others choose to dedicate their time by serving on boards and volunteering through charitable responsibilities. With approximately 80,000 registered charities in Canada there are many options available to individuals wishing to contribute to charity.
Individuals have a limited number of dollars they are willing to donate to charities. Planning may assist you in stretching those donations a little further and to benefit those charities you would like to support the most. With the growing number of charities they are becoming increasingly sophisticated in their campaigning techniques. As more charities chase these dollars the field is getting more competitive.
Recent changes in the last couple of years provide greater incentives for individuals and corporations to make donations of securities listed on prescribed stock exchanges, mutual funds and segregated funds. These contributions are also known as "in-kind" donations. The changes also address the donation of ecologically sensitive land.
Similar to investing, we advise individuals to investigate before they give. We feel that individuals with a limited amount to allocate to charities are best to plan their donations. Your planning activity should include making calculations of your tax savings, based on specific donation amounts. You can then decide how to allocate the donations to a charity or among a number of charities. Planning your donations will enable you to obtain the best tax breaks for the dollars you donate. This planning may allow you to make even greater donations in the future.
The following highlights the most common methods of charitable giving:
