Your Personal Finances

Consumer Alert

There have been a number of terrible disasters around the world recently and it is only natural for caring Canadians to want to donate money to help with the recovery efforts.

In fact, Canadians are very giving people. According to the most recent statistics from the Canadian Survey of Giving, Participating and Volunteering 23 million Canadians over 15 years of age made a charitable donation in 2007. That's 84% of all Canadians over 15. These donations equaled over $10 billion and averaged $437 per donation.

Charitable donations can go a long way to help an organization meet its not-for-profit goals, but just like any other cash outlay, you need to do your homework before you hand over your hard-earned cash. You want to ensure that the money you donate is being used wisely and actually making a difference for the people or cause you want to support.

Here are some tips on charitable giving:

1. Decide what non-profit or charitable activities you want to support. If you want a tax deduction, the organization you donate to must be a registered charity. You can find out if the agency you want to support is a registered charity by checking with Canada Revenue Agency www.cra.gc.ca/charities
2. Ask questions about the charity. Whether you are solicited door-to-door, by phone or in person you need to find out:
   • How much money has been raised to date and how is it being spent?
   • What work does the charity do and where is it done?
   • How long has the charity been in existence and who sits on the Board of Directors?
   • If the canvasser is a volunteer or if he works for a commercial fund-raiser.
   • What percentage of donations goes to charity and how much goes to administration expenses?
   With telephone solicitors, ask them to put their request in writing if it would make you feel more comfortable. With door-to-door canvassers, ask for identification and proof they are authorized to solicit funds for charity. Call the charity to confirm.
3. Watch for con artists and frauds. Some organizations raise money by using names similar to the names of well-known charities. Don't be fooled by names that sound like names you have heard before. Never give out personal/financial information, such as your credit card number, over the telephone. Do not use cash for donations.

As with all money matters, consult with your financial advisor to find out where charitable giving fits in your financial plan.

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