A new year can often inspire a desire to change something important in our lives. Making it a priority to help others, and goal in your wealth plan, can not only inspire us, but can inspire the lives of those who receive our kindness. And there may never be a better time than now.
Canadians are a generous bunch, often leading the OECD nations – the 36 top richest countries in the world – in donations and size of donations per capita. However, more recently charities have begun to see a steady and concerning drop-off in the number of donations and overall dollars given. A recent report1 from the Fraser Institute looked at charitable contributions across the country, and found that giving has dropped steadily and dramatically, hitting their lowest level in 20 years in 2020. In 2010, nearly one-in-four of us contributed at least once to a registered charity, and gave around 0.7% of our income; by 2020, those numbers had fallen to 19% and 0.5%, respectively.
The need is real and rising
Unfortunately, the last few years have not been easy ones, and more Canadians than ever are relying on charities for basic needs such as food, clothing and shelter. According to a recent Ipsos poll2, 22% of Canadians will need to use charitable services this year, fully 8% over a similar poll from January of 2022. And the need is greatest for those between 18 and 34, of which more than one-third are expected to avail themselves of essential charitable services in the coming months.
Sometimes it’s about more than money
For many Canadians, helping others is best done by the giving their time and “elbow grease” versus giving financial support – especially for retirees who have the time and desire to do so in their golden years. This is also incredibly important, and can sometimes make a far greater impact on the lives of those who need the assistance. Whether that’s in the form of education, training or coaching, the need is also great, especially for who are new to Canada or economically and socially challenged.
Unfortunately, this increasingly means women are too often the first ones to be harmed by an economic downturn and the last to benefit from any upturn.3 Many of those in need of help are looking for a way forward to a better life, not a handout, and would rather be taught how to fish than eat fish for a day.
Empowering and inspiring those in need can make all the difference. One example of charity that is focused on lifting the spirits of women and girls is Look Good, Feel Better (LGFB), which RBC PH&N Investment Counsel has recently sponsored. LGFB helps women and teen girls facing the difficult cancer journey feel more like themselves again. Their mission is to ensure that those we love have the tools and a community to help optimize their health and wellness.
We can help you help
Fortunately, it is easier than ever to give, and to give in a way that properly reflects the intention and desires of givers. If charitable giving, philanthropy and leaving a legacy is in your life plan, talk to your Investment Counsellor about how we can help you and your family make it part of your wealth and estate plan, maximizing its impact and establishing a legacy for you and your beneficiaries. As a New Year dawns and new challenges for so many loom, this year might be the one to be inspired to make it your resolution.
Sources
1Generosity in Canada: The 2022 Generosity Index, Fraser Institute (December, 2022).
2Ipsos poll on charitable need, Ipsos Canada on behalf of CanadaHelps.org (November, 2022).
3Double jeopardy, Dawn Desjardins and Carrie Freestone, RBC Economics (March, 2021).
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