I can’t believe this is my 100th post!
I have always been a firm believer of donating & volunteering, even when I had 25K of debt.
If you are trying to get out of debt and don’t have spare money, give your time instead.
There are several benefits to volunteering & donating, way beyond the tax deduction. Volunteering and donating should come from the heart and not from tax refund calculations.
That being said, in Canada, the federal tax credit for qualified donations is 15% on the first $200 and 29% thereafter.
Here are a few positive effects of donating & volunteering:
- It puts things into perspective and takes the focus away from yourself: it is very easy to get all wrapped-up in our own problems and in ourselves. When you focus on someone or something else, you gain better clarity on your life.
- It brings more meaning to your life: this is in relation with the above-point.
- It helps other people: this is the foundation of donating and volunteering!
- It makes you happier and healthier, according to several studies.
Over the years, I have volunteered at numerous organizations and donated money to causes that are important to me, like the Food Bank. A few months ago, I decided to sponsor a child in Paraguay. I am also a Council member of my strata.
At some point in my life, I was on the “receiving end” and I really appreciated someone taking time to help me. It made a huge difference.