With your help, the dental community has the opportunity in June to surpass the $400,000 mark in money raised for the kids at Holland Bloorview. It is one of Canada’s largest pediatric rehabilitation hospitals – www.hollandbloorview.ca.
You can help simply by playing golf with your colleagues. The Toronto Academy of Dentistry hosts an annual golf tournament benefiting the charity. This year it is on Friday June 7, 2013. I think the $400,000 milestone targeted this year is a testament to how the money you pay for the day of golf really does get to the kids at Holland Bloorview.
Charitable Giving is on the DeclineFoundations are having difficulties during this sluggish economy. A 2012 study released by the Nonprofit Research Collaborative suggested that in their review of 781 charitable organizations, 29 per cent had a fall in giving this year. As more Boomers retire, this decline in giving may continue as the number of people livingon a finite nest-egg increases.
If charitable giving is important to you, here are two quick thoughts on how to make it happen in retirement, during a sluggish economy, rain or shine.
Be targetedCharitable giving is intended to be an experience that is positive for everyone involved. The charities receiving the gifts are able to positively impact the world, and the person giving can take pride in their philanthropic action. With so many great causes out there today, it is hard for any one person to support all of them; and politely declining can sometimes make make individuals feel uncomfortable. Consider focusing on one charity, and having a measureable impact.
This will help you budget, and will also allow you to see the impact you are having. Another positive is that it is helpful to politely decline giving to others: “I’m sorry, this year I am focusing on the Holland Bloorview Foundation.”
Set goalsWhat gets measured gets done. If giving is an activity that is important to you in retirement, then it should be an activity you discuss with your financial advisory team before you retire. They can help you give charitable donations in the most tax efficient manner. This will allow you to donate more, helping your dollars have the greatest impact.
Before you meet to discuss this with your advisor, set some S.M.A.R.T goals – ones that are Specific, Measureable, Actionable, Realistic, and have a Timeline. One example of a SMART goal would be: “I would like to donate $10,000 to the Holland Bloorview Kids Rehab Hospital over 10 years by making monthly donations of $85.”
Tax efficientAs you probably know, donations made to charitable organizations are tax deductible in Canada, both at the federal and provincial level. However, are you aware that the more you give, the better the tax benefit? For the first $200 in donations claimed on your return, you receive a 15 per cent federal tax credit. On each dollar above $200, you receive an increased federal tax credit of 29 per cent. This is further amplified as you include your provincial tax credit. When you consider claiming your donations, ask your accountant if it makes more sense to group your donations with your spouse to help you get above the $200 tax credit limit.
Consider the merit of delaying your tax donation claim until you have aggregated over $200 in donations. This can help your donation credit dollars provide a better tax credit.
Another consideration is the donation of property. Many people only consider money when thinking about charitable giving, and often overlook stocks, art, and even some insurance policies which can be donated with the benefit of a tax credit being received by the donator.
For more information on the golf tournament, please contact me (see info below) or the Toronto Academy of Dentistry directly at firstname.lastname@example.org. PA