3 reasons giving to charity is good for your bottom line
Giving to charity is a nice thing to do because it makes us feel good – and it helps others at the same time. Making charitable donations helps give back to those in need, and in some cases, can help save a life.
That all sounds good, but did you know that giving to charity also has financial benefits? As if the incentive to help others (especially during this time of the year) wasn’t motivation enough, giving to charity can also help increase your bottom line.
There are several ways you can give back to your favourite good cause, and regardless of how you do it, all donations are welcome. You can donate your time and volunteer at a fundraising event, you can donate goods such as clothing, furniture and food or you can give money to help support the charity of your choice. Whether you choose to help animals, children or people who need a second chance, giving back can help you feel good, do good and make a difference.
Here are three financial benefits when making donations to charity:
Monetary benefits with tax credit
This is the number one way giving to charity can help increase your bottom line because it deals with physical cash. Canadians can deduct their charitable donations and get a tax credit in return. The amount of the credit depends on a variety of factors, such as the amount donated and the eligibility of the charity. If you wish to declare donations, it’s important to get a tax receipt for each submission.
Any amount you give that equals $200 or more is eligible for a higher credit. It’s important to note that charitable donations are a non-refundable tax credit and can only be used to reduce tax owed. You can find more information about tax deductions for charitable giving on the Canada Revenue Agency website.
Networking to help your career
Donating to charity is a great way to network with a room full of people with whom you have something in common. If you want to increase your inner circle, prospect for a new job or find other organizations to work with, networking can help get you there.
Whether you’re volunteering your time or donating money, you can network with all the other people who care about the same cause – it’s easy to approach someone new when you already have common interests, such as the charity you support. You just never know who is in the room, so if you’re attending a charity event, don’t be shy. Make new connections to help advance your career.
Growing awareness for your business
If you’re a business owner, giving to charity can be a great way to grow awareness for your company. If you make a donation, your business name will be displayed on a list of donors for everyone to see. You can also choose to sponsor an event and have your business name in the forefront, which is often referred to as a named sponsor. Visibility can help prospect and acquire new clients.