Donating to charity can feel overwhelming: How much should I give? How can I balance charitable giving with saving? What will the impact of my donation be?
Our donors make a difference in the lives of vulnerable people every single day. We want donors to feel confident and informed when giving to United Way East Ontario, so we can make a difference in the lives of people who need us throughout the year.
With the 2024 charitable tax deadline fast approaching, we’ve teamed up with Melany Goodhue, Certified Financial Planner at Pulse Wealth Management, to answer questions around charitable giving to ensure you’re making decisions that are right for you and your community this holiday season and beyond.
How to get the most out of your donation
The great thing about charitable giving is you’re not only supporting critical programs and resources for folks in need across Prescott-Russell, Ottawa, Lanark County and Renfrew County, but our governments have incentives in place to ensure you also see a benefit on your tax return.
Melany says, donating any amount is good. Up to $200 contributed in a year will give you a 15 per cent federal income tax credit. On top of that, you’re also going to get a provincial tax credit.
But the sweet spot is over that $200 mark, she explains.
“[On amounts contributed] over that $200 mark, the federal income tax credit pretty much doubles to about 30 per cent, plus your Ontario tax credit and so you’re hitting 40 per cent in terms of an income tax refund when you make that contribution.”
Use United Way’s tax calculator to find out how much you can save with your donation.
At United Way, we understand the challenges that our communities have faced as the cost of living has risen. We encourage donors to work within their means to land on a donation that feels comfortable for them.
Some donors like to give lump sum amounts around the holidays, but the easiest way to ensure you’re climbing over that $200 threshold every year is to set up a monthly donation.
Melany says donating regularly ensures that when tax season rolls around, you have already accounted for your tax credits, making it easier to plan for what might be coming back your way.
An alternative way to give that doesn’t affect your spending account
A lot of people don’t know that you can donate securities.
“Securities, in their simplest form, are investments,” says Melany. “Think of your RSP or TFSA or an unregistered investor. Well, if you’ve got extra to spare in your investments, you can actually donate from there. And honestly, it’s as simple as filling out a form with your financial planner, and then that gets donated.”
Anyone interested in donating securities can learn more and access United Way’s transfer form here. Our Manager Donor Relations Brian Reusch Serapio (brserapio@unitedwayeo.ca) can also support you with several strategic giving options.
Think about the impact
Charitable giving is more than just, ‘What am I giving?’ It’s also, ‘Who am I helping?’
With an increased need in our communities and the colder months settling upon us, your support is even more crucial to our work.
Through generous donations, United Way is able to support community partners in a range of efforts. Whether it’s tackling youth homelessness, supporting vulnerable seniors, making sure kids don’t fall behind, or making mental health support easier to access—United Way is constantly adapting to the evolving needs of our region.
You can help fuel the solutions our communities need right now.
