A guide to Charitable giving this holiday season
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GIVING TUESDAY | Thursday, November 16, 2017 |
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Consumer feature
A guide to charitable giving this holiday season The 2017 Giving Tuesday Guide is a specialty section published by Metroland Media Toronto. Copyright 2017. All rights reserved. Any reproduction of this publication in whole or in part must be approved by the publisher. For further information regarding all our products, please call us at 416-493-4400.
After Black Friday and Cyber Monday comes
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ot long ago, few Canadians had heard of Black Friday - the ones who had were limited to watching the videos of crazed shoppers looking for deals post American Thanksgiving. Now that shopping deals like Black Friday and Cyber Monday are finally reaching Canadian shoppers who want to find cheap gifts for their loved ones, it’s time for another American event to take hold in Canada. Giving Tuesday began in 2012 to capitalize on the holiday spirit of giving by celebrating
November 28, 2017
philanthropy and promoting charitable giving and was the brainchild of the team at the Belfer Center for Innovation & Social Impact at New York City’s 92nd Street Y. More than 2500 partners, including The Salvation Army, the American Red Cross and Microsoft came together for the first Giving Tuesday in the U.S. GivingTuesday was launched in Canada in 2013 by GIV3 and CanadaHelps.org and lists 15 founding partners. GivingTuesday is a day for the entire charitable sector and encour-
ages all Canadians to join the movement and give and volunteer for charities of their choice. Since then, charitable giving in Canada has skyrocketed on the Tuesday following American Thanksgiving, Black Friday and Cyber Monday. In 2015, for the third annual GivingTuesday, over 4,700 partners came together and millions of Canadians joined in, creating national awareness, recognition and a massive impact on donations (+ 302% at CanadaHelps since 2012) and other forms of giving.
Maria has cerebral palsy and that makes it difficult to speak. But with your help and the scientists at Holland Bloorview, her personality shines. This #GivingTuesday, you can support more incredible technology research that will shape the future for kids with disabilities. Visit hollandbloorview.ca/givetech
@HBKidsHospital
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@HollandBloorview
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A guide to charitable giving this holiday season
Evaluating charities worthy of your donation
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ow much should a Canadian charity be spending on fundraising and overhead? How should you judge? If you’ve ever looked at a charity’s financial report and wondered whether they were spending too much or too little, you’re not alone. The answer, although not as simple as it sounds, is to look at the big picture. When it comes to assessing a charity’s fundraising, the Canadian Revenue Agency does not rely solely upon the fundraising ratio. Other factors can be the size of the charity, its stage of growth, and its internal fundraising evaluation processes. These are all factors to be taken into consideration when trying to evaluate an organization as a donor. There may be very legitimate reasons for a charity to have what appears to be a high fundraising ratio; conversely, an extremely low fundraising ratio may actually indicate erroneous or even fraudulent reporting of expenses. Donors should also look at a charity’s cost of fundraising, its overall budget and whether it is running a deficit. Ideally, donors should look for signs of consistent management and stable costs over sev-
eral years. A lot of us tend to judge by the fundraising ratio alone, but that is only one part of the picture, and it is often inaccurate as the sole source of information. For example, charities that rely heavily on small gifts from a large number of donors will have higher fundraising costs. Amnesty’s fundraising expense percentage of 32 per cent in 2016 was typical of many Canadian non-profit organizations. The organization neither seeks nor accepts government funding in order to remain independent. Most non-governmental organizations do, and they take their fundraising costs and divide them into the total pot of income — government funds included — which makes them look lower as a percentage of the private income raised. In summary, there is no specific rule to go by when trying to make this assessment. An overall evaluation of the financial health history of the organization is a better guide. When deciding to support a charity, do your research and don’t be afraid to ask questions for more information. — www.newscanada.com
3 things to do when choosing a charity 1. Read up on the Better Business Bureau Wise Giving Alliance Standards for Charity Accountability. The BBB developed these standards to help donors make sound giving decisions. The standards measure effectiveness, fundraising, governance, and production of informational materials. 2. Do not use overhead costs alone when determining if a charity is legitimate. Instead, donors should consider the entire picture of the charity’s impact rather than what it spends on operational costs.
Do not go where the path may lead, go instead where there is no path and leave a trail. – Ralph Waldo Emerson
3. Don’t necessarily believe the hype. In August 2017, social media attacks called into question the efficacy of the American Red Cross concerning disaster relief efforts following Hurricane Harvey, which hit areas of Texas and Louisiana very hard. While there may be some validity to complaints found online, people should not base their assessment of charities only on hearsay. Rather, they should do their own investigations.
— MS
St. Michael’s Foundation Inspired Care. Inspiring Science. Create your legacy with a bequest to St. Michael’s Foundation. Your hospital in the heart of the city. Contact Cynthia Collantes 416.864.5879 collantesc@smh.ca
GIVING TUESDAY | Thursday, November 16, 2017 |
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A guide to charitable giving this holiday season
Consumer feature
Get kids excited about volunteering V
before bringing kids along to join them. olunteering benefits people of all ages, but it can be especially beneficial to chil- • Don’t forget fun. Young children may be more likely to embrace volunteering if the activity dren. Studies have indicated that teenis fun. Kids might not find it too fun to sit next agers who volunteer are less likely to become to their parents while mom and dad balance pregnant or use drugs. In addition, children a soup kitchen’s books, but a beach cleanup who participate in civic engagement programs excursion or a trip to refurbish an inner city may be more involved in school, graduate from park may inspire kids to spend a lifetime givhigh school and hold more positive civic ating back to their communities and helping titudes than those who do not get involved in the less fortunate. such programs. Older students might feel compelled to vol- • Keep it simple. Kids may not enjoy volunteering activities that consume too much unteer to improve their college admissions aptime or make them feel exhausted. As kids plications or complete their 40 hours of comgrow older, parents can encourage them to munity involvement, but parents can take steps embrace more challenging activities and/ to get their younger children excited at the or commit more time to volunteering. But prospect of volunteering. keep things simple with especially young • Set a positive example. Young children want to children or older children who have never emulate their parents, so moms and dads who before volunteered. volunteer may find ready and willing partners in their children. Parents can inform their chil- • Try and try again. It might take some trial and error before parents find volunteering oppordren when they volunteer and why they do so
tunities their children truly enjoy. When volunteering with children for the first time, be careful not to commit to more than one day. If children enjoy themselves, parents can com-
mit more time. If kids do not seem excited by an activity, parents won’t feel guilty or let the charity down by not returning. — MS
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A guide to charitable giving this holiday season
Disaster relief: guidelines for giving
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isasters are defined as accidents or natural catastrophes that cause widespread damage or great loss of life. Disasters are often unpredictable and can occur anywhere around the world. When disasters happen, survivors are often in need of assistance. Disaster relief support is charitable giving at its finest. But helping after a disaster requires both forethought and strategy so donors can rest easy knowing their donations are going to the right place. Get clearance before TRAVELING Images of disaster zones can incite strong feelings that compel people to travel and help out in person. While that’s a noble gesture, receive clearance before purchasing a plane ticket. Working individually also may not be cost-effective, and you may compound the problem by causing more drain on an already jeopardized infrastructure. Work with reputable organizations If your first inclination is to provide financial support, do so by working with a reputable charitable organization that has a proven track record with disaster relief. Charities like Oxfam, the Red Cross and Direct Relief International organize relief efforts and are first on the scene when disaster strikes. These groups may be more trustworthy than groups without a track record of success regarding disaster relief. According to the Center for International Disaster Information, financial contributions allow pro-
fessional relief organizations to purchase what is most needed by disaster survivors, when it is needed. Also, cash donations allow relief supplies to be purchased near the disaster site, avoiding delays and steep transportation and logistical costs that can quickly eat up relief fund budgets. Confirm the need before ACTING Many people feel a desire to send material donations in addition to cash. Sometimes there are opportunities to do so, but do your homework before sending supplies, as some organizations ask that supplies not be sent. If there is no need, unsolicited materials can cause supply delays, take up storage space and/ or require additional funds to remove unnecessary items. Furthermore, the cost to ship material supplies (that may not be useful) can be expensive. Disaster relief organizations typically can secure the necessary supplies, which is why many organizations request only financial donations. Wait until media coverage has subsided Many people rush to give in the first days following a disaster, only to have efforts trickle away as time passes and the limelight has stopped. Instead, wait out volunteering opportunities. You may find you are more effective afterward as rebuilding efforts begin anew. Helping out after a disaster can be a fulfilling venture if timed correctly and done in the correct manner. — MS
s s e n l l i l a t n e M . s u p o t s t ’ n d i d Donate now. FocusedOnRecovery.ca Charitable Business #835559824 RR0001
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A guide to charitable giving this holiday season
Consumer feature
6 simple ways to be more charitable
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eing charitable is rewarding, not only to those on the receiving end of others’ good deeds but also for those doing the giving. Research conducted by the National Institutes of Health found participants who chose to donate a portion of money they were provided activated pleasure centres in the brain. Doing something positive can be uplifting, and being charitable helps others in need. Quite often people who engage in charitable works find inspiration through their efforts. That’s because working with a nonprofit group can create opportunities to meet new people, socialize and be surrounded with likeminded individuals. It also may help adults serve as role models to youngsters. Children who see their parents or other adults being charitable may be more likely to be philanthropic when they grow up. Every little bit counts when being charitable. Philanthropy doesn’t mean donating thousands of dollars or lots of hours volunteering. The following are some relatively easy ways to incorporate charity into one’s life. 1. Collect change: Place a coin jar near where you put your keys or wallet when entering the house. Empty loose change into the jar and watch it fill up. Use the collected funds to donate to a charitable group. 2. Round up: When the grocery store checkout clerk asks if you want to round up your purchase to the nearest dollar for charity, opt in. 3. Become a leader: Volunteer your time as a scout troop leader, coach a sports team or offer free tutoring for students. You’ll be making an immediate difference in the lives of young people. 4. Charitable consumption: Buy from companies that are involved with cause-related products. Many products are tied to charitable efforts, with a portion of money going directly to nonprofits. 5. Throw a party: Host a party with a philanthropic theme. Guests can arrive and make a donation or bring a gift that will go to a charitable cause. 6. Use your hobby: Participate in charity fundraisers that incorporate some of your favourite hobbies. For those who knit or craft, donate or sell your creations for the good of those in need. Being charitable is easier than one might think, and even the smallest efforts can produce big results. — MS
How to budget for charitable giving B
udgets are an important component of personal financing. Without a thorough understanding of the rate of money going in and out of their bank accounts, people cannot accurately assess their potential for spending and saving. Budgets are also handy for paying off debt and planning for the future. Those who budget may find they have more money to devote to leisure or other worthwhile endeavours, such as donating to charity. Establishing a charity budget makes it possible for people to focus on doing good and helping others. Charitable giving also comes with the beneficial side effect of establishing extra tax deductions for some individuals. Many people only think of charitable giving at the end of the year, when the holiday season tends to inspire philanthropy. However, many people’s end-of-year finances are already stretched thin thanks to holiday shopping and entertaining. As a result, men and women who wait until the end of the year to donate may not be able to be as charitable as they would like. That’s why focusing on charity as part of a yearly budget can stretch dollars even further. Establish a giving level By examining their finances, people can get a better picture of how much money they have for discretionary spending, including charitable giving. However, income alone may not dictate just how charitable a person can be. Generally speaking, the typical amount most people aspire to donate to charity ranges from 3 to 10 per cent of taxed income. To make a charitable giving budget work, consider these tips. · Make a list of charities that have meaning to you. If you do not have specific choices, select categories, such as politics, education
to help someone with medical bills. and community, and then go from there. · Assess your giving ability in dollar value. Be · Sign up for recurring payments for yearly giving to take the work out of remembering to sure charitable giving does not come at the expense of necessary daily living. give. Other organizations can distribute do· Divide the available funds against the charities nations to the kinds of charities you prefer, selected. making giving even more automatic. · Set aside specific times of year that you will Budgeting for charitable giving enables make the donations so as not to feel bur- greater year-round control of funds for beneficial purposes. dened at any one time of year. · Leave an emergency fund for donations that cannot be planned, such as disaster relief or — www.newscanada.com
The world’s most charitable nations
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Charitable GivinG in Canada 12.8 billion total amount of donations in 2013
60%
average annual amount/donor
of Canadians in 2013 had donated food to charitable organizations such as a food bank
76% 82%
$531
of Canadians donated clothing, toys or household items or products to charitable and non-profit organizations in 2013
of Canadians 15 and older made donations to a charitable or non-profit organization in 2013
Reasons Canadian’s GIVE 91% feel compassion 88% help a cause in which they personally believe 82% want to contribute to their community 61% are affected by the cause
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eople travel for various reasons. Some may desire to visit their ancestral homeland, while others venture afar to view ancient sites and witness history in living colour. For those looking for inspiration to see the world, perhaps visiting the most generous countries with regard to charitable giving can be just the motivation necessary. Although Canadians and Americans are generous, their charitable efforts are equalled or surpassed by other nations around the world. Charities Aid Foundation is a group that supports charities and donees. The United Kingdom-based organization annually produces its World Giving Index, which polls residents of 140 nations about how much they tend to give to charity, how much time they spend volunteering and their propensity to help strangers. This index paints an interesting picture of the world as a whole and illustrates that it isn’t always the most affluent nations that do the most giving. The following are the most generous countries according to the 2016 World Giving Index. 5. Sri Lanka: The country of 21 million scored high for community volunteerism and kindness to strangers as the country continues to rebound from a brutal civil war in 2009. 4. New Zealand: This Pacific nation close to Australia ranks highly in generosity and tends to be a relatively conflict-free place to
live and grow. 3. Australia: Residents of Australia are no strangers to giving, and this vast country is filled with tourist-friendly beaches, a vast countryside and abundant culture. 2. United States: Americans continue to exhibit their generosity. Even in a year when residents were divided by the presidential election, 73 per cent of U.S. residents reported they helped a stranger in 2016. Rates of volunteerism in the United States are high as well. 1. Myanmar: For the third year in a row, Myanmar took top position as the most generous nation on the globe. Myanmar has the highest per-person giving ratio of any country on the list. Ninety-one percent of people reported they gave money to charity in the last year. Canada, Indonesia and the United Kingdom also deserve honourable mentions for their generosity. In fact, Charities Aid Foundation says the UK is the most generous nation in Europe, while China was named as the least generous country in the world. Generosity extends to all corners of the world. Travellers can explore charitable nations near and far, rewarding such countries’ generosity by spending their vacation dollars within their borders. — MS
45% get asked by family/friends 29% to fulfill religion/faith beliefs 26% beause of the tax credit they get in return
Top Donated To Organizations
12% Social Services 13% Health
41% Religious
34% Other
Source: Statistics Canada 2013, General Social Survey – Giving, Volunteering and Participating
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A guide to charitable giving this holiday season
GIVING TUESDAY | Thursday, November 16, 2017 |
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A guide to charitable giving this holiday season
6 ways volunteering can help you find work
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ven though looking for work can be time-consuming, consider volunteering to help with your job hunt. It’s a great way to gain skills and experience for the job market. It also allows you to try out new things, network with people and have fun. Here are six ways volunteering can help when looking for work:
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It gets you out in the working world, interacting with people with similar interests and making contacts. Volunteering helps your energy levels and keeps your morale up as you mingle with exciting new people. It’s a great opportunity to get a reference and gives you experience to put on your resume. Volunteering in an excellent way to find out more about work that interests you. Helping others can give you insight into other people’s needs and takes you away from your own worries. Gives your week a daily routine and structure, which helps keep a focused mindset.
To get started, you may want to try helping out at an event. It provides a sense of the organization without a long-term commitment. If you like an organization, such as Amnesty International, talk to them directly about volunteering. Whatever your age or interest, contact your community volunteer centre to check out hundreds of positions and attend their free seminars. — www. newscanda.com
Consumer feature
Gifts that give back
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ecember is right around the corner, which means holiday shopping is top-ofmind for many of us searching for the latest toy or greatest gadget. But after a year filled with natural disasters, hate, white supremacy and international concerns such as refugees or the crisis in Myanmar, why not consider a gift that gives back? Here are a few ideas:
offer the option of giving a gift in celebration of a special person or occasion. The person receiving the gift will feel good about it, and as the donor, you’ll receive the tax receipt — it’s a win-win. Sponsor a child or ‘give’ an animal The idea of sponsoring a child or buying an animal like a goat or chicken for a community is very common among international development charities. These funds go towards a developing community and offer you an alternative to the average holiday gift.
Buy merchandise Instead of getting your nephew a hoodie from a mall-based retailer, consider purchasing a sweater from a local charity, with proceeds going towards their work. Some organizations will even match Volunteer your time your gift, meaning you buy a pair Instead of giving a gift, set up a of shoes or glasses, and they will donate a pair to someone in need. day with loved ones to volunteer for your favourite charity. There are tons of opportunities especially Donate in someone’s name Many charities promote the around the holidays to sort toys, idea of leaving a memorial gift in volunteer at food banks or help out someone’s honour. Organizations at a local hospital. — www.newscanada.com such as Amnesty International also
Memorial gifts honour loved ones T
he loss of a friend or loved one is seldom easy, particularly if a person had been suffering from an illness. Close friends and family honour the memories of their deceased loved ones in different ways. Charitable giving can be a great way to honour a loved one’s memory while helping others. Survivors often find comfort in the knowledge that they can do good in the name of a loved one. Tributes or memorial gifts can be approached in different ways and serve as an ongoing reminder of a deceased loved one. Create a charitable foundation
Those who have the time and resources can establish their own charitable groups in the decedent’s name. This method of charity requires the most time and effort, but can prove to be quite an impactful memorial. Individuals who would like to go this route
can consult with financial and tax izes in information and services professionals about the best way pertaining to that illness. Many to establish a charitable group. such groups have a “donate in memory” option on their webCommunity foundation sites. Oftentimes families are notiFamilies can focus on some- fied regarding who made memothing their loved one cared rial donations in their loved ones’ deeply about, such as animal names, but the amount of the dorescue, children, the arts, or even nation need not be revealed. particular places in a community Personal intentions - such as a local park. Families can Those who would like to make choose to have their donations funnelled to specific charities a donation but cannot think of a or nonprofit groups. Otherwise, charity to associate with their defunds can be allocated to a third ceased loved one have a host of party community fund that will options at their disposal. Considdistribute money to various organizations no matter where they are located. Medical tribute Memorial gifts that assist medical associations or groups working to find cures or offer treatments for diseases are quite popular. If a loved one passed away due to a specific illness, it is common to ask for donations to a specific organization that special-
er donating to a school or library, requesting materials be purchased in the decedent’s name. Otherwise, donate to a general scholarship fund, possibly at the decedent’s alma mater.
Finish their work If the decedent was engaged in a charitable project prior to their death, volunteer to help complete that project. Giving back after the death of a loved one is a great way to keep the memory of that person alive. — MS