Charitable giving is vital to local organizations

In the recently released Vital Signs report, it showed that charitable donations have been declining in Kawartha Lakes since 2012.

In 2023, 17 per cent of Canadians claimed charitable donations on their tax returns, compared to just 15 per cent of residents in Kawartha Lakes. “Since 2012, the share of residents who donate has fallen from 25 per cent to just 15.6 per cent, with declines evident across every age group, even as demand for charitable and community services reaches historic highs,” the report stated.

For organizations like The Grove Theatre, donations are critical. “For The Grove, ticket prices only cover half of the cost of the production, so we rely heavily on donations to bridge the gap. Simply increasing ticket prices seems like an obvious answer but that leaves members of our community out of the action and makes the programming only available to those who can afford it,” said Tim Wisener, co-founder and treasurer of the Fenelon Falls based theatre.

He said the theatre was built because of the donations of community members. “Five years later we now run our professional summer season as well as summer camp for youth, The Grove Guild, for more experienced lovers of theatre, and are working towards being able to program beyond the summer season.”

Mabee and Associates IG Private Wealth Management recently held a seminar about the benefits of charitable giving. Jennifer Mabee, executive financial consultant, and Chris Mabee, senior financial consultant at IG Private Wealth Management in Kawartha Lakes, recently completed their master financial advisor in philanthropy designation. It’s a specialized Canadian professional credential designed for financial, tax, and estate planners, as well as charity staff, to master philanthropic planning.

There are typically three reasons why people give to have a sense of belonging, to live with a purpose, and to leave a legacy. “This is what moves us to share what we have, our time, our resources and our wealth, and how those choices can not only shape the world around us, but the stories we leave behind,” said Jennifer.

“In addition to the emotional side of giving, giving can also be very strategic when we plan well through timing tax credits, we can amplify our impact and make generosity sustainable,” she said.

There are several ways that donors can benefit from lower taxes, but there are some things to be aware of. If you give to a registered charity, they can issue you a charitable donation tax receipt, whereas a non-profit cannot.

Tax credits given for donations do vary by province as well as tax bracket. With that in mind, donations of up to $200 can give you a 25 per cent tax saving, and donations exceeding $200 is substantially higher, explained Chris.

While living you can claim 75 per cent of your net income in charitable donation, or you claim 100 per cent in the year of death or the year immediately preceding death.

Donation tax credits can be carried forward for five years on on either your return or a spouses return, but they should only be claimed to the point that they reduce your taxes to zero.

“Talking to a financial planner is always a good idea, so these tax credits can be enhanced even further depending on the type of donation you make,” said Chris.

While many think of donations as being strictly cash, donations in-kind are also beneficial to make. These include things like real estate, artwork, stocks, and even life insurance policies.

“Donating cash, gives you a tax receipt for the full value of the donation. Gifts of a non-registered investment in-kind is the same thing, you get the tax receipt for the full value of the donation, plus you can avoid paying any capital gains on that investment if it’s non-registered,” said Chris.

Another way people can donate besides cash, is with a donor advised funds. You open an account and name it, you deposit your initial gift and then add to it whenever you wish, and you get an immediate tax receipt at the time of deposit. From there you get to choose the charities to receive annual grants from the fund and you have the flexibility of changing it over time.

For The Grove, donations not only benefit the theatre directly but also the surrounding area.

“The Grove is having the impact it set out to, with over 11,000 visitors last summer, returning an economic impact of 4.1 million dollars, the donations we receive are directly impacting the broader economy in the Kawartha Lakes,” said Wisener. “Giving that is planned well can be advantageous for the donor, the charity and the community as a whole, it is a win-win-win.”