#GivingTuesdayCA: The Global Day of Giving Really Works

Written by Regan Ray

A new season is here and it has nothing to do with a change in the weather.

Dubbed the "opening day of the giving season," #GivingTuesdayCA directly follows the yearly shopping frenzy that is Black Friday and Cyber Monday, aiming to balance it with an equally powerful frenzy of charity. The good news is, it works!

Around this time, you can expect to hear a lot about charitable giving – in the media, on your social feeds and in everyday conversations – so we've gathered some information to help answer questions that may arise.

Giving in Canada

Many Canadians give – there's no doubt about that. Whether volunteering your time, money, muscle or stuff, there is no one way to donate. Writing a cheque works for some people, but being charitable can also mean participating in a fundraising walk, donating canned goods to a food bank, volunteering in your child's classroom or bringing your skills to a country in need. Some Canadians are in a position to donate money, while others are not.

When it comes to giving, if, when, what, how much and to whom is entirely a personal choice.

Thanks, seniors

In terms of dollar donations in Canada, seniors are the most generous age group. According to the latest numbers from Statistics Canada, in 2017 seniors (aged 65 and older) represented 30 per cent of donors, as well as 42 per cent of the total donation amount. Seniors also had the highest average donation: $2,500.

Older Canadians are giving more, but unfortunately, the percentage of Canada's population that donates has been steadily dropping. Many point the finger at millennials, but that assessment is likely unfair. Donation data covers individual monetary donations only. With lower average incomes, younger Canadians may not be giving money, but many give their time, energy and stuff to charitable causes. According to one research estimate, when all forms of donating are included (gifts of food, clothes, money or time), 80 per cent of millennials donated to charities in 2017.

While the decrease in the percentage of donors is a real worry for Canadian charities concerned about funding gaps as seniors age out of the space, perhaps there is a glimmer of hope. If millennials are already giving what they can, could this translate into increased dollar donations as their salaries likely increase with age and experience? Enter GivingTuesday.

What is GivingTuesday?

Black Friday and Cyber Monday are a fun opportunity to get great bargains on items you've been eyeing. Retailers entice pre-Christmas shoppers with reduced prices on everything from electronics to clothes. It's a win-win: retailers get high-volume shopping, consumers get deals.

But the holiday season is also an important time for charities. Some organizations receive a significant portion of their donations in December, and many donors give around this time so they can qualify for a tax credit in the same year (the deadline is December 31). GivingTuesday grew out of a desire to highlight giving alongside all the shopping. In the same way that Black Friday is a show of solidarity among retailers, GivingTuesday brings the giving community together.

It works!

The movement launched in the U.S. in 2012 and quickly spread globally. In Canada, more than 6,500 charitable organizations now participate, and last year more than $15 million was donated online on GivingTuesday. And it's not just dollars that people are giving. Across the country (and around the globe), volunteers gave their time, organized clothing drives, supported their local food banks, donated blood, and much more.

Using the power of social media, the movement is raising awareness and encouraging people to balance holiday consumption with holiday giving.

Benefits of giving

Anecdotally, we know that helping others makes us feel good – and research backs this up. Studies show that giving is good for the body and mind. Lower blood pressure, lower risk of depression, lower stress and even a longer, happier life can all stem from the simple act of charitable giving.

Recognizing that charity is an important part of society, governments (federal and provincial) offer tax credits for dollar or property donations to a registered Canadian charity.

Of course, there are rules around these tax credits depending on your income, the amount you give and when you make the donation. Investors also have the option to donate stocks or mutual fund shares directly. In this case, the capital gains tax doesn't apply, and tax credits are still available for the in-kind donation amount. The tax benefits of charitable giving are definitely worth investigating! You can get all the details from the Canada Revenue Agency.

Happy #GivingTuesdayCA!

The information provided in this article is for general purposes only and does not constitute personal financial advice. Please consult with your own professional advisor to discuss your specific financial and tax needs.