Donating to charities

TK4

TK4

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I suppose timing isn't important but as the Christmas season draws near maybe we should all think about helping out those who are less fortunate.
There are hundreds of worthwhile charities, and over the years I've tried to research (and contribute) to the ones where the money goes to maximum benefit.
For many years I was directly involved in one particular event that raised over $375,000 towards Sick Kids Hospital Toys and Games Fund, alas it is no more.
Pick one (or two or three) make a tax deductible donation - I don't need another pair of socks or an ugly sweater and the likelihood is that your family and friends don't either. Make the donation in their name if you like and spread the wealth and the joy.
What's the worst that can happen ???
 
I do this on a regular basis...my siblings are all older, which means my nephews and nieces are close to my age...we all have everything we need, so making donations in their name is a great idea...it also has the extra perk of a tax deduction...I use the website Charity Intelligence to research which ones actually use their money wisely...another thing I do regularly is go grocery shopping ($150 or so) and drop it off at a fire station as they take collections for Salvation Army...a little goes a long way.
 
We do the same although I bypass the charity itself in favour of directly donating (retirement homes, hospitals, etc). I just call or attend and ask what they're in need of. Many retirement homes just have basics and some residents have families far away that rarely visit and a nice blanket, nicer shampoo/moisturizer/etc goes a long way especially at Christmas.
 
Hardwrkr13 said:
We do the same although I bypass the charity itself in favour of directly donating (retirement homes, hospitals, etc). I just call or attend and ask what they're in need of. Many retirement homes just have basics and some residents have families far away that rarely visit and a nice blanket, nicer shampoo/moisturizer/etc goes a long way especially at Christmas.
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Good point.

I used to volunteer and serve as a board member at a suicide prevention hotline. We received funds from a few umbrella charity fund-raising organizations, which we were always grateful for.

However, many umbrella fund-raising services have high overhead costs, and when they distribute the funds after canvassing, the actual amount is around $0.25-$0.50 of each dollar donated.

I hesitate to name these fund-raising organizations because I don't want to discourage donations to them, their marketing and outreach efforts are extraordinary. They provide a valuable service to the community, and they do have to cover their costs. But if you really want to maximize your donation, do some research on where your donation dollars get re-distributed to and make your donation directly to those recipients, instead of the fund-raising group.
 
Not charity related directly but...
One of the things that was encouraged at Halloween was to get the kiddies to go visit the local seniors homes (3 in my 'hood).
There were treats in the lobby and the residents were ecstatic to have the tiny costumed visitors. A small thing but it made a difference.
 
We do give directly to the local hospital.

For other charities this site can help to determine the actual percentage of funds that actually make it to prgrams vs. administrative and fundraising expenses. Also take a look at executive + senior leader compensation and the distribution of salaries.

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Charity Intelligence, home, Ci, Canada, intelligent, giving, donation, charity
www.charityintelligence.ca www.charityintelligence.ca

Another question, more difficult to answer, is the actual effectiveness of the programs supported.

You'll see that fund raising expenses are a significant percentage of administrative costs and I often wonder at the linkages between fund raising companies and charity leadership. Is everything above board and at arm's length, or not.

Incidentiially, the local hospital has a lousy rating. Excessive salary expense and only 60% of donations make it to programs..........
 
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Lightcycle said:
Good point.

I used to volunteer and serve as a board member at a suicide prevention hotline. We received funds from a few umbrella charity fund-raising organizations, which we were always grateful for.

However, many umbrella fund-raising services have high overhead costs, and when they distribute the funds after canvassing, the actual amount is around $0.25-$0.50 of each dollar donated.

I hesitate to name these fund-raising organizations because I don't want to discourage donations to them, their marketing and outreach efforts are extraordinary. They provide a valuable service to the community, and they do have to cover their costs. But if you really want to maximize your donation, do some research on where your donation dollars get re-distributed to and make your donation directly to those charities, instead of the fund-raising group.
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The upside to some of the umbrella organizations is they simplify record keeping and tax planning. I've never used one but apparently some allow you to put money into the umbrella for future distribution as desired. My understanding (although I may be wrong) is you get the receipt when the money goes into the umbrella as you've lost it at that point. If you want to send tons of $20 donations (I think this is a bad plan but $20 is better than nothing for charities) you don't need to track handfuls of receipts. If you have money this year to donate but want the charity to receive it next year for some reason, you can use the umbrella to introduce that delay. They also allow in-kind transfer (see below) prior to distribution so you could send $20k in stock to umbrella and then $1000 each to 20 charities. I'm not saying umbrellas are perfect and the cost may exceed the benefit, but they can have some benefits.

For those with investments outside of registered accounts, seriously consider donating securities in-kind. It cuts the cra out and the charity gets more. For instance, if you have shares bought for 10K with an unrealized capital gain of 10K, I you cash them out, you have ~17.5K to donate after tax. If you transfer the shares to the charity, you make a 20K donation and charity gets them on the books at 20K, cra gets nothing. See ~6:45 in video for similar advice from a canadian cfp.

 
On a related note, every now and then I get asked to donate to “a trip to XXX to help with YYY by ZZZ”.

Many of these are voluntourism orgs that exist to help pad resumes rather than assist foreign/impoverished communities etc. The truth is that the buildings and help the volunteers provide in the foreign country could be better provided for if money was sent instead and local skilled workers used. In extreme cases the “orphanage” that was built would be torn down as it was unsafe and rebuilt by local skilled builders rather than volunteers with no experience.
 
I throw some cash to my hospital, Sally Ann and some to the local animal shelter. Hell,...they`re all local, within a 5 minute drive. Always makes me wonder how much of a lot of charity gets skimmed for the organizers bank accounts. The shelter is a throw `N go, hang around and take the chance of some furball tagging along for the ride home.
 
My wife and daughter are large supporters of pet rescues , and now also the wolf dog sanctuary in Alberta. They both like animals more than people , odd being one is an office manager for two naturopaths and the other a retired peadi nurse . Or maybe not odd .
We do a fund raiser in both my office and a couple clubs I belong to for a variety of social services , I’m only attached to them by money , but I’m happy to help as I can .


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After our 40% of our income is donated to our government we provide what we can to a local animal rescue.
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