Charitable Giving Before Year-End: Simple Ways to Be Thoughtful and Tax-Smart
Charitable Giving Before Year-End: Simple Ways to Be Thoughtful and Tax-Smart
As the year winds down, many people look for ways to support the causes that matter most to them. Whether you’re an established professional, a retiree, or a business owner who gives consistently each year, a bit of planning now can help your generosity feel even more meaningful. Ensuring your giving aligns with your values and fits comfortably within your financial plan can help avoid a last-minute scramble.
Start With Your Values
The most fulfilling giving begins with a clear idea of your values. Think about the organizations, community programs, or issues that have shaped your year. From health care and education to local shelters and youth services, choosing a cause intentionally helps you focus on impact.
If you’re unsure whether an organization qualifies for official donation receipts, the Canada Revenue Agency (CRA) offers a public List of Charities search tool to confirm registered status. This ensures your donation supports a legitimate charity and, if applicable, qualifies for the federal and provincial charitable donation tax credits.
Know What’s Eligible
While every donor’s situation is different, there are some general rules you can rely on. The CRA requires that a charity issue an official donation receipt for a contribution to be eligible for the charitable donation tax credit for the 2025 tax year.
It also allows spouses or common-law partners to combine their charitable donations, which may increase the credit rate once a certain threshold is reached. It may be worth a conversation with your tax professional if you’re unsure how these rules apply to you.
Consider Donating Appreciated Securities
One strategy many Canadians use — especially those with established investment portfolios — is donating publicly traded securities directly to a registered charity. The CRA eliminates capital gains tax on securities donated in-kind which means the full value of your investment goes to the charity, which can increase the impact of your contribution.
Most charities and financial institutions have straightforward processes for these transfers, though cut-off times vary. If this approach is part of your giving plan, it’s best not to leave it to the final days of December.
Make Giving Part of a Bigger Financial Picture
Thoughtful giving doesn’t need to end on December 31. I’ve helped many of my clients build annual or multi-year giving plans (including charitable gifts made through a will or estate) that align with their cash flow, retirement goals, estate plans, or family values.
A clear plan can turn giving into a meaningful tradition, not just a transaction. And it often creates opportunities to involve children or grandchildren in conversations about generosity and legacy.
With a little clarity and a bit of planning, charitable giving can be both heartfelt and well-organized. If you’d like to discuss how giving fits into your overall financial picture, I’m here to help.