Marking National Philanthropy Day, BMO Harris Private Banking Tuesday announced the results of a study showing that despite the recent market volatility and the challenging economy, 71% of Canadians plan on donating the same amount or more compared to last year.
The study, conducted by Leger Marketing, found that in the past 12 months, Canadians gave an average of $487 to charitable organizations.
However, the report found that 54% of Canadians don’t have a strategy when donating, and instead give on an ad hoc basis.
“It is encouraging to see Canadians giving despite the current economic environment,” says Marvi Ricker, vice president & managing director of philanthropic services, BMO Harris Private Banking. “However, I do encourage those that donate to sit down with a financial professional and develop a giving strategy that can become part of a financial plan, including a disciplined and strategic examination of goals, objectives, interests and options.”
Ricker noted that there are two kinds of giving – charitable giving and philanthropy. Philanthropy involves a longer term commitment and a wealth management and donating strategy that is aimed at building a lasting legacy towards a specific cause. Charitable giving, on the other hand, refers to donations made on an ad hoc basis and may include a variety of causes and charities.
The report also revealed that nearly two-thirds of Canadians have a good or strong understanding of how donating impacts them from a tax perspective. “Understanding the relationship between charitable giving and how this can affect your taxes is an essential step in developing a plan,” says Ricker. “While it is satisfying to see the benefits of charitable donations at work, receiving tax benefits is important as well.
The online survey was conducted by Leger Marketing among Canadian adults between October 24 and 27.