In a time when fundraising efforts are hampered by COVID-19 restrictions, those less impacted financially by the pandemic on the East Coast might feel good about finding ways to help.
In May, Imagine Canada shared that 69 per cent of charities reported a decrease in revenue since the beginning of the pandemic, largely due to the abrupt halt of in-person fundraising activities and events such as gala dinners, golf tournaments, and relays.
Choosing a charity that is credible and transparent while supporting a cause important to the donor is the first step, according to Jacob O’Connor, vice-president of charity engagement and growth at CanadaHelps.
Another thing to consider: the way donations are made can make a difference in a charity’s budget and the donor’s taxes.
Finding a charity
Some people do not realize how many organizations in their life are charities, according to O’Connor. CanadaHelps’ 2020 Giving Report states that charities represent eight per cent of the GDP and 10 per cent of the full-time workforce in Canada.
“Personally, as a donor, someone who works in the sector and someone who also volunteers in the sector, the sector gives a lot to the social fabric of the country,” he said.
“I would encourage everyone out there to engage with it in … whatever way they feel comfortable.”
With over 86,000 registered charities supporting different causes in Canada, there are plenty to choose from.
“It could be even something personal,” said O’Connor. “My father, for instance, had a brain injury at one point in his life, and so he supports the (Ontario) Brain Institute.”
If an organization does not immediately come to mind, O’Connor suggests picking a handful to research. CanadaHelps, which promotes charity-giving and helps charities be successful online, has a search tool that can filter topics of interest and present registered charity profiles.
“I encourage folks to actually check out that organization’s website, and particularly to look at their annual report,” said O’Connor.
“That will give you a really good indication of the work they've done in their most previous year and what they're about … if you're curious and learning more, I would reach out to the organization — give them a call, shoot them an email — and I'm sure they'd be happy to speak to you.”
Once a donor has decided on a charity, they can usually find out how to donate through their website, phone line or CanadaHelps.org.
Transparency
Donors will have the best knowledge of where their money goes by donating to a charity registered with the Canada Revenue Agency. Any credible charity should be willing to answer questions about its purpose and where donated money goes.
When being contacted by someone who claims to represent a charity, it is important for the donor to research themselves before donating, and not feel pressured or rushed.
Donors can check out the organization’s financials and impact in each year’s required annual report to know how donated money is spent and what is being achieved. One website, Charitydata.ca, compiles 17 years of Registered Charity Information Return (T3010) data.
O’Connor challenges the perspective that spending very little on administration is best.
“If you really think about it, that's preventing these organizations from investing in themselves and really being able to make a huge impact … I think that's what we're all looking for when we're making a dip, we want to make an impact,” said O’Connor.
Did you know?
GivingTuesday is a global movement for giving and volunteering, taking place each year after Black Friday. This year, it will be marked on Dec. 1.
Contributing
If feasible, O’Connor suggests contributing monthly, even if it's in smaller amounts. This gives charitable organizations a predictable source of income throughout the year, saving them from relying on the giving season rush in December.
Registered charities can issue receipts for donations, meaning that at tax time, as much as 53 per cent can be returned as a credit.
One growing method of donating is from mutual funds and securities, where donors do not have to pay capital gains tax.
“That's another super tax-efficient way to give and it gives you the opportunity to make a little bit of a bigger impact with some mutual funds or a stock that you might have kicking around,” said O’Connor.
The amount and frequency of donations varies between individuals, but at the end of the day, charitable organizations will almost always have other ways in which they need help.
“I think any organization, regardless of the amount, will appreciate your gift one hundred per cent,” said O’Connor.
“If you're not comfortable making a financial gift yet, if you want to get to know your organization a little bit more or maybe you'd just prefer to volunteer, from there you can reach out to that organization and see how you can make it work.”