For many people, donating to charity comes with an instant rush. You feel good because you’ve just done something good. It’s as simple as that. Or is it?
As it turns out, there are several benefits to donating to charity that goes beyond the initial gratification and the help your donation can provide.
3 Incredible Benefits of Donating to Charity
Charitable donations have far-reaching effects. We’ve discussed the instant feeling of happiness we get when we do something good for others. We also know your money can be put to good use, helping people, animals, or organizations in need.
But we know it goes beyond even that.
Here are three other wonderful ways philanthropy can make an impact.
1. Motivating your family and friends.
Sometimes all it takes to get someone to donate to charity for the first time is hearing from a friend or family member who’s done the same. When you share stories of your charitable donations with those close to you, it could motivate them to find a charity of their own to support.
Of course, doing so in a gentle and conversational way is best. Not everyone is in a position to make charitable donations. Keep this in mind when you share your charitable efforts with a friend.
At the very least, this can open up a conversation with your friends and family about donating to charity.
I’ve always been interested in what motivates us to take that next step in life. Whether it’s deciding to donate to charity or investing in a vacation property or something entirely different, what compels us to make these choices?
I’ve found the best way to answer these questions is with a contextual framework, or model, to help me understand where I am and where I want to go. Click here to read about how a contextual model for change can illuminate the path to where you want to go.
2. Teaching your children the power of giving.
Setting a positive example for their children is at the top of the lists of many people who make charitable donations. They want to demonstrate to their children how important it is to give back, along with the positive effects of doing so.
If you have young children, encourage them to get involved with charitable giving in their own small ways. Encourage them to ask questions about where your charitable donations go. Educate them about the importance of giving to those who have less. Ultimately, this goes a long way toward raising philanthropic adults.
Teaching your children about philanthropy goes hand in hand with teaching them about financial planning. In this post, I share tips for saving money for a financially secure future.
3. Tax-saving benefits.
Donating to charity can ultimately save you money come tax time. While this isn’t the primary reason most people have for making a donation, it certainly doesn’t hurt!
After donating to a registered charity in Canada, you’ll get a tax receipt for your donation. Then, your receipt can be submitted with your annual tax return. This can result in a tax credit of up to 53 percent of your donation!
Planning to donate on securities directly? This can also result in saving on capital gains tax.
Click here to see a list of registered Canadian charities and other qualified donees.
The tax-saving benefits of charitable donations shouldn’t go unnoticed. Remember, it means you’re left with more money to do with as you wish!
Perhaps you plan on putting more of your money toward another charitable donation. Or maybe you’re going to invest that money in your own future or leave it to your children. Or maybe you’ll use it to buy that dream car you’ve always wanted.
Reasons for donating to charity.
Whatever reasons you have for donating to charity, take comfort in knowing you’ve done something good with your money.
For many of us, our charitable giving is the legacy we leave behind. Lately, I’ve been having more meaningful conversations with clients around leaving a legacy. This is an important conversation that should be addressed by all financial advisors.
If you’d like to get in touch to discuss your financial future and leaving a legacy, don’t hesitate to contact me today!
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