At Veterans’ House Canada, it’s easy to see the impact of charitable giving on the lives of its residents. Veteran’s House is a three-year-old Ottawa-based charity that houses and aids homeless military veterans.

One recent resident served in the military until an injury sidelined her and left her unable to work. She ended up homeless, bouncing from shelter to shelter. After three years of enjoying a roof over her head at Veterans’ House Canada, she recently moved out into her own apartment.

“She is happy with the support services we created for her – and she’s ready to go,” says Angella Rawsthorne, fund development manager at Veterans’ House Canada.

A place of care 

Veterans’ House serves vets of all ages, with the oldest veteran at the Andy Carswell Building in Ottawa an impressive 91 years old, says John Atoyebi, marketing and communications manager for the charity. Some vets have injuries that have prevented them from working. Others suffer from mental health issues such as post-traumatic stress disorder. In addition to housing, Veteran’s House connects the vets with medical care if they need it, and also gives them access to a variety of psychological therapies.

The charity relies on donors for funding, with many donations coming from families with loved ones who served in the military. There are also many opportunities for volunteering. 

“When they see the work we do, they can see it’s heartfelt, and that’s when those individuals begin to transition to the donor stage,” says Rawsthorne.

Charitable giving and economic distress 

However, she warns, there’s been a decline in charitable giving over the past 10 years, a function of the pandemic, changes to the ways organizations donate and inflation, which has led to less disposable income among Canadians. 

“The heart is there but the coffers aren’t there,” says Rawsthorne.

But, she notes, when times get tough, it’s the perfect time to give, in whatever way someone can.

Many ways to give

With charities like Veterans’ House feeling the pinch, and a rising number of hungry and homeless Canadians showing up at food banks across the country, the need for charitable giving is at an all-time high.

Yet, donations are dropping off. Just under five million Canadian tax filers, or 17.1 per cent of all tax filers, declared making charitable donations in 2022. That’s 0.3 per cent fewer than a year earlier, despite the number of tax filers increasing three per cent year over year, according to Statistics Canada.

“People should certainly be aware of the challenges that charities are facing,” says Betty-Anne Howard, a certified financial planner and master financial advisor, Philanthropy, in Kingston, Ont. “I think sometimes, when it comes to charitable giving, we are too far removed from it, and it’s good to reach out to the charities that you’ve supported.”

She says that’s often all the motivation a donor needs to give.

“When times are tough, people feel good when they can give back,” whether that’s volunteering their time or making a financial contribution, says Howard. 

Even “$5 or $10 a month really is quite beneficial,” she says, adding that might involve simply giving up the odd Starbucks beverage. 

If that means “there’s a meal that you can provide to somebody who is homeless and hungry, those kinds of connections are really powerful,” she says.

Here are some other benefits of giving:

It makes you feel good

Giving has a big positive psychological impact. “We know from studies that we’re the happiest when we help someone else,” says Susan Latremoille, partner, Next Chapter Lifestyle Advisors in Toronto. She says that giving may involve donating time in the form of volunteerism or mentorship, or supporting a cause that you have an association with or has touched your life in some way. “It’s a part of living a rich life,” she says.

You can leave a legacy

While many Canadians are unaware of this, “they can, for an extra $50 a month, put a charitable giving life insurance policy in place,” says Howard. She says such an arrangement can be structured to ensure it is a tax write-off and recommends would-be donors discuss setting up such a policy with their financial planner.

You can avoid a huge donation to the Canada Revenue Agency (CRA)

If someone dies without beneficiaries, they will inadvertently be leaving their money to the CRA, says Latremoille. Leaving that money to a charity instead can reap benefits for that organization. ”Would you rather have the CRA be your number one beneficiary, or would you rather have a charity that does good work?” she says.

You can get a tax break

Canada’s generous policies around charitable donations mean that people who donate may qualify for a 15 per cent tax break on the first $200 in donations and 29 per cent on all subsequent charity donations made in that calendar year. You can also save charitable donations over multiple years and apply them when you’re in a higher tax bracket for a bigger tax break.

Howard suggests that if a person is interested in donating, they should reach out to a charity that supports a cause they value. In this way, they can find out what the charity needs — whether that’s volunteers, specific items or money. Charitable organizations can also be an easy way to donate. CanadaHelps, for instance, is a one-stop shop for Canadians to donate and fundraise online for any registered Canadian charity.

“The charities are always happy to talk, and you don’t have to worry about them trying to convince you to give them money,” says Howard.