DONATE LIKE ZUCKERBERG ON A BUDGET.
GROWING TREND IN CANADA AMONG YOUNG PROFESSIONALS WHO ARE FINDING WAYS TO GIVE BACK
Large- scale generosity is headline grabbing. And, generally speaking, the people who grab those headlines are white- haired, suit- wearing businessmen, with l ong, storied careers.
Leave it to a young tech CEO to shake that up too.
Last month, T- shirt and j eans- wearing Facebook
Inc. chief executive Mark Zuckerberg and his wife, Dr. Priscilla Chan, announced they would donate 99 per cent of their Facebook shares (valued at about US$ 45 billion) to causes that advance human potential and promote equality.
At just 31, Zuckerberg is a relatively young addition to the ranks of the world’s major philanthropists, but he’s not the first successful young executive to make a large charitable commitment well before retirement.
Canada has its own prominent examples of young executive philanthropy, too. At age 42, Belinda Stronach, heiress to the Magna International
Inc. fortune, started a foundation to support socially innovative projects. Ryan Holmes, CEO of Vancouver’s Hootsuite, started a grant at age 37 to help young Canadian entrepreneurs succeed.
These high- profile examples point to a growing trend among young professionals in Canada who still find a way to be charitable, despite not having the financial resources of a Zuckerberg, Stronach or Holmes.
In 2010, 80 per cent of Canadians aged 25 to 34 made charitable donations, averaging $ 304 annually; in 2013, 81 per cent of young professionals made donations, with an average annual total of $ 366, according to Imagine Canada, a national charitable organization that supports and strengthens other charities or non-profit. Among Canadians aged 35 to 44, 89 per cent donated in 2010, with an average donation of $ 431; in 2013, 85 per cent donated, with an average of $441.
In 2010 and 2013, Canadians aged 25- 44 made up 28 per cent and 25 per cent of total donations, respectively.
Despite being a prime target for companies offering everything from the latest tech gadgets to mortgages, this generation of young professionals is empathetic to global issues, and willing to open their wallets in support of causes they believe in.
“This group seems to be invested and committed to contributing to communities,” says Bruce MacDonald, CEO of Imagine Canada, which compiled tax- filing data to identify giving trends.
“When we look at motivations and barriers as to what all age groups think about when making charitable contributions, this group is very consistent with the top two categories: Being compassionate toward those in need and a personal belief in the cause.”
Dave Dat, 36, works fulltime in information technology for an accounting firm near Toronto while he also completes a computer science degree. Despite being a married student with many bills to pay, he says giving back is important to him.
“You can do things that make you feel great even if you don’t have a lot of money,” he says. “It doesn’t matter if it is $ 10 or $ 20, if you donate you feel good about yourself.
“Many people out there are a lot worse than I am and need the support, even if it is something small just to get on their feet.”
Dat does more than just contributing financially, which he says averages up to $ 2,000 a year. He and some of his colleagues are part of their own non-profit organization called InKarma, which holds fundraising events such as dinners and golf tournaments for causes like aiding Syrian refugees.
Across the country in Vancouver, Nicole Buxbaum, 28, works full-time in the social work sector and is working toward a master’s degree. She says she tries to donate as often as she can, despite financial limitations.
“Service to others is ... one of my values,” Buxbaum says. “It is just natural for me to want to help.”
She says she often donates to causes as they happen, such as to the Red Cross during major events like the earthquake in Nepal or to the Special Olympics when they are fundraising.
“I usually donate to organizations that I know of, that are doing a good job and I support,” Buxbaum added. “Things that are close to my heart. I’m not going to just donate to anything.”
Part of what forces her to pick and choose charities is her limited finances. Living in Vancouver comes with a high cost of living and Buxbaum said times are tough for her and her friends.
“A lot are struggling as they figure out their career, so they might not have extra money to donate,” she says.
But every little bit helps — both for the charity receiving the money, and for the person making the donation, thanks to federal and provincial tax credits for donations to registered charities and non- profit organizations. These incentives not only make it more affordable to donate, but also help make smaller donations go farther.
“Young people should realize that while you are giving up money to the charity, the federal and provincial governments are actually pretty generous on the tax savings you can generate from making a donation,” said David Ablett, a director at Winnipeg-based Investors Group.
For annual donations up to $200, the credit is typically set at the lowest tax rate. So, in Ontario, you receive the federal credit of 15 per cent and the provincial credit of five per cent, meaning a $100 donation only costs you $80.
If you’re able to donate more than $200, though, the tax credit increases.
For example, Ablett says someone in Ontario who makes $84,900 a year and donates more than $200 would have a donation credit of 46.41 per cent. That essentially means that if that person donated $ 300 in 2015, it only cost them $220.
If you are a first- time donor, the tax credit is even more generous, with the federal government offering an additional 25-per-cent credit on qualifying first-time donations made after March 20, 2013 worth up to $1,000.
“You will recover a fairly generous portion of your donations through those tax credits,” Ablett says.
Planning your donations with tax credits in mind may sound less charitable on the surface, but in many cases may allow Canadians with smaller or fluctuating salaries to donate more.
Additionally, donations don’t need to be in lump sums in order to be meaningful. Many organizations have systems in place for recurring donations, where a set amount ( that you can choose) gets transferred from your bank account or billed to a credit card each month. Then, if additional money comes your way, you can commit to a certain percentage of it to top up your annual donation.
Strategies aside, Ablett says he sees the struggle and financial sacrifice many young professionals have when it comes to giving. “It is important to note, as they just don’t have the funds,” he says.
With tax incentives in place and young professionals willing to contribute where they can, the final pieces of the puzzle lie with the charitable organizations.
Dat and Buxbaum recommend that everyone research charities before donating to make sure the money is actually being allocated properly, which then puts responsibility on organizations to be more transparent in order to secure funding.
“If you have some extra money, then why not?” Buxbaum adds. “It is important to donate to organizations and causes you feel strongly about, but also really do your research to figure out exactly how they are using the money.”
SERVICE TO OTHERS IS ... ONE OF MY VALUES. IT IS JUST NATURAL FOR ME TO WANT TO HELP. I USUALLY DONATE TO ORGANIZATIONS THAT ARE DOING A GOOD JOB AND I SUPPORT. THINGS ARE CLOSE TO MY HEART. I’M NOT GOING TO JUST DONATE TO ANYTHING. — NICOLE BUXBAUM, 28