Whether you’re passionate about animal welfare, the arts, the environment, or cancer research, there’s an array of dedicated Canadian charities in need of your thoughtful support. Intentional giving is about knowing what breaks your heart, what keeps you up at night, and what’s smartest for your bottom line. The happy truth about donating to nonprofits close to your heart is that it has positive impacts not just on our society but on your mental and financial health, too. 

Below, we reveal some phenomenal benefits and shrewd strategies for smart charitable giving as part of a holistic financial plan that helps you maximize both your impact and your savings. 

REASONS WHY YOU SHOULD DONATE TO CHARITY

Foster a sense of purpose

Influential psychotherapist Adler said the key to happiness is giving, and that satisfaction is possible as long as we continue to contribute to society around us. Whether it’s donating to the homeless, the hungry, or the seriously ill, studies show that when we give to others, we contribute meaningfully while nurturing a sense of inner fulfillment. Giving back to your community, helping your fellow citizens, and making a tangible difference in people’s lives is a window into contentment and pride. 

Cash in on tax advantages

Beyond the gratification of altruism, it’s important to know that donating to nonprofits can also give you some financial gains. When you give money to registered charities, you’re eligible to claim your donations as tax deductions, thereby reducing your taxable income and overall tax burden. So your charitable gifts not only benefit your chosen organizations; they can benefit your bottom line as well.

Get connected with your community 

Another upside of giving to charities is that it can connect you with your community in ways you may not have anticipated. Choosing to support local nonprofits and initiatives, whether it’s the Coldest Night of the Year Walkathon or incredible cat rescue down the street, helps strengthen community bonds and introduces you to some of your neighbourhood movers, shakers, and potential new customers or clients. If you run a local business or provide local services, getting involved in community philanthropy can open all kinds of doors and opportunities.

Build a charitable giving legacy 

Philanthropy also has the bonus of helping you leave a lasting legacy. You can outline your charitable wishes through your will, distributing your estate to both your loved ones and your chosen charities. You can bequeath a predetermined sum of money, direct specific assets like shares or land, or endow a share of the balance of your estate to the charities that matter most to you. Strategic charitable giving perpetuates your values for future generations of your family, allowing you to leave a positive mark on the world.

Smart Strategies for Charitable Giving

Opt for automated donations

Thankfully, it’s never been easier to give via regular cash donations and make an impact on the communities you care about. Many charitable organizations will give you the option of setting up pre-authorized debit donations through your bank account or credit card. Another option is through your work—many employers now allow for automatic payroll deductions, too. Pre-planned giving helps charities with regular cash flow, reduced fundraising expenses, and a better ability to plan ahead. 

Strategic budgeting

Giving back can be a sustainable and impactful practice, regardless of your income level. Strategic budgeting for your charitable giving is another way to support the causes you care about while also managing your finances wisely. You might consider basing your charitable donations on your income level. Many donors regularly allocate about 1-3% of their income to charity, while those in higher income brackets give an average of 4–10% of theirs. By setting up monthly donations in this way, you give steady support to charities in need while also spreading your contributions evenly and gaining fiscal benefits in the form of charitable tax credits. 

Specify your donation

A number of charities offer the option to specify where your donation goes, designating your donation to a specific program or initiative that you care most about. Whether you’re passionate about supporting a particular project or want to focus on a special area of need, defining your donation ensures it’s aligned with your values and intents.

Consult with a financial advisor

Need expert guidance in managing your charitable giving? One smart strategy is to consult with a financial planner, who can give you wise advice on maximizing the impact of your giving while also optimizing your financial strategy. Financial advisors can help you do things like define your goals, plan your estate, navigate tax laws, donate publicly-traded securities, and create a long-term plan that fits your philanthropic and financial goals.

Final Thoughts

Giving is a powerful expression of being a good human. When we give back to the communities we live in, help out fellow citizens, and choose to make a difference, we feel happier, more content, and more connected. Charitable giving is a tool for positive societal change and a doorway into fulfillment, legacy building, and fiscal health. 

We hope these benefits and strategic approaches to charitable giving help individuals and families take advantage of financial gains while fostering generosity and compassion. Know that every contribution you make, no matter how small, has the power to change lives for the better.

When will you make your next charitable donation? 

Search over 86,000 registered Canadian charities on CanadaHelps.org to find a cause that matters to you and give today. Or you can browse these resources to learn about different ways you can give:

The Advantages of Monthly Giving

Ways to Give

 

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Updated on November 4, 2024