Holiday gifting is once again top of mind as we head into the winter season. If giving back is also on your wish list, we’re here to help make sure you get the most out of your donations.

Choose the right charities

Unfortunately, they are not all created equal. It’s important to do your research to make your donations as impactful and rewarding as you intend.

Do some digging: Resources like Charity Intelligence Canada are an accessible way to research potential charities. Before you donate, make sure to look into the organization's impact, financial health, and transparency.

Choose a focus: Is it most important to you to support your local community? Or is there a Canada-wide or international issue that’s calling your name? All of these are deserving, of course, but you might have an easier time evaluating the impact of one charity over another if you’re more familiar with the issue they’re solving.

Look for financial transparency: All legitimate charities should be open about their finances. Reputable organizations will typically provide financial statements and clearly explain how donations are used.

Consider the charity’s impact: Look at their recent achievements and long-term impact. They should be able to showcase tangible results from their work.

See for yourself: If possible, get a better feel for your chosen charity by volunteering with them or speaking to someone who has.

Avoid scams: This one is a given, but worth highlighting. Charity scams are sadly prevalent, with many taking advantage of the holiday giving mindset. Suspicious things to look for include:

• Urgency or high-pressure tactics
• Names that sound similar to well-known organizations
• Unsolicited contact via text, email, or phone
• Lack of registration

Making the most impactful donations

Once you've settled on a charity, there are a few ways to make sure your gift is helping as much as possible.

Set a realistic budget: Start by making sure you’re giving at a level you can comfortably afford. Helping is great, but solving everything is not up to you!

Quality over quantity: Your gift will usually make a bigger impact if it’s a larger sum donated to a single charity rather than spread out over several.     

Think outside the cheque: Donations can take many forms. You can donate your time, skills, or needed items instead of money. Local food banks, shelters, and organizations might have specific needs listed on their website.

Find a matcher: Your employer might offer donation-matching programs that can double your gift.

Automate donations: You may find it easier to fit donations into your budget when they recur monthly. Charities appreciate the dependability as well.

An alternative to presents: If you don’t love holiday shopping, you can make donations in a loved one's name instead. It’s a perfect gift for the minimalist in your life.

Involve your family: Teach the importance of helping other by getting your kids involved as they learn about money.

Win-win: how to get the best tax benefits from your contributions

While you’re helping others, the government recognizes your efforts by offering tax deductions for donations to registered charities. Here’s how it works.

Understand credit rates: The federal tax credit is 15% on the first $200 you donate, and 29% on anything over $200. Provincial rates vary, but in BC they are 5.06% for the first $200 and 16.80% for donations over $200 (figures are for the 2023 tax year).

Claiming donations: Claim eligible charitable donations on your electronic federal and provincial tax return or on schedule 9 of paper tax returns. Donations can be claimed by either spouse, regardless of who made them.

Maximize your benefits: You might be able to get a better return by accumulating donations over a few years and claiming them in a single tax year. Donations can be carried forward for up to five years.

Record-keeping: Be sure to keep detailed records of your donations, including official tax receipts from the charities. You should be receiving proper tax receipts from charities that include their registration number and other required information.

Happy giving!

Finding ways to give back is a wonderful way to spread good cheer during the holiday season and beyond. We’re so proud of how passionate our employees are about giving back to our Island communities. They volunteer thousands of hours of their time throughout the year to causes close to their hearts. Our locations also have many forms of giving to help those less fortunate, from fundraising events to supporting charity campaigns.

For more information about donating this holiday season, details on our community programs, or for up-to-the minute financial planning advice, please get in touch.