Each year, 50 per cent of charitable giving through CanadaHelps happens in December, equating to $35 million in donations to worthy causes. December 31 is the most popular day of giving, with $3.6 million donated on this day alone.
Some individuals have a charity which they donate to year after year; others vary their charitable giving among an array of organizations.
The recent financial difficulties of a high-profile land conservation organization have shone a spotlight on the importance of donors doing their due diligence before selecting their charity of choice.
So what do people need to consider before deciding which charity to share their goodwill with this year?
1. Begin by considering what kind of cause is important to you. Is it the environment or people in need? Perhaps it is a health-related cause or a social mission abroad? As well as thinking about a charity's mission, consider whether you'd like to support a local, provincial, national, or international cause, as this will help guide your research.
2. Consider what you are willing to give. Is it money, supplies, or volunteering your time? Knowing up front how you would like to make a difference will help narrow down your search. If you are donating money, look at the various projects the charities are running; some allow you to donate to a very specific project of your own choice (designated), or to help with daily operations (undesignated). The latter is the hardest dollar to raise, and is vital for a charity to continue its good work.
3. Take time to check out the organization's non-profit status. You are looking to see that the charity is listed on the Canada Revenue Agency's website, which shows that donations received are to be used specifically for charitable means. Being listed on this website also confirms that your donation is tax deductible under the Income Tax Act.
Once you have a shortlist, it is time to look at each charity in detail -- particularly the specific goals the charity is set out to achieve. Look at the tangible results that the charity delivers to see whether or not they resonate with you.
4. Consider the financial viability of your charity of choice. This will reassure you that the charity can deliver on its objectives, and use your money smartly and for the purpose for which it was donated. To do this, view the charity's tax form for each year on the Canada Revenue Agency's website.
At The Nature Trust of British Columbia, we place a high priority on fiscal responsibility, and this commitment has served our donors well. We are the fourth biggest environmental charity in B.C., as indicated in the 2013 Business in Vancouver list. We have over $95 million worth of assets, including 70,000 hectares of land and no debt.
Another good marker of a charity's finances is to see whether or not it has a steady growth pattern that is within its means. If a charitable organization looks to grow quicker than it can secure finances, the chances of it running into financial difficulty are high.
Our fiscally responsible approach means we only acquire ecologically significant land for conservation when we have the finances in place to do so. This means it can take up to a decade for us to acquire a large piece of land, by purchasing a portion at a time. On occasion, this has meant we've had to say, "No" to land because the financial resources to purchase are not available. This is a tough situation for us, but it is essential for the long-term sustainability of our organization -- and is one of the reasons we've been operating for 42 years.
5. Don't hesitate to contact the charity by phone or face-to-face to learn more about how your donation will be used to further their cause.
Once you are confident that you've selected the right charity for you, make your donation (via phone, email, or the internet) and experience the joy of giving.