The large space of the training room in our Newcastle office is transformed for a day each November.It’s festive, but there are no baubles or trees to be seen.
There are, however, trolleys filled to nearly overflowing — gifts waiting to be wrapped, just not with ribbon.
The carpeted floor hardly muffles the laughter and conversation happening inside. Accountants, normally busy sharpening pencils and plugging away at calculators, instead carefully zip them into pencil cases. School backpacks sit open and eagerly wait to be filled with supplies and lunch boxes, destined for kids in need.
It’s the annual Friends With Dignity Back to School Drive, and the team is donating their money and time to make a difference in their community. And statistically, so are many others.
Two Gifts, One Present
December is the busiest time of year for charitable donations in Australia. More and more, people are choosing to give to those in need as a substitute for traditional gifts.
It’s a trend that’s more than a convenience for individuals or businesses. There’s efficiency to be found in the feel-good festivities. Your giving (and dollar) can go further this way; two gifts, one present, as it were.
But is your generosity having the biggest impact it can?
At C&N, we match financial giving with time giving to ensure it goes as far as possible with the charities we support. Here are our tips on how to make the most of your donations this year:
Make Every Dollar Count
You can focus on the effect of your dollar by focusing on what the charity is doing with it.
How do you choose which nonprofit to donate to? For most, it comes down to finding one that:
- Supports a cause they believe in
- Aligns with their values
- Has a meaningful impact
But there’s a fourth quality that many people don’t think about — efficiency.
How a charity spends its money can differ from what you’d expect. It’s important to do your homework if you want your donation to make the biggest difference it can.
An easy way to check a nonprofit’s efficiency is by having a look at its proportional spending (i.e. how much of its received donations go towards its cause). Check the information provided by the organisation, or you can also check its financial overview through the Australian Charities and Not-for-Profits Commission (ACNC) Charity Register.
Your Time Is A Gift
Your time is as valuable as your money and should be spent just as carefully.
Volunteering your time or your team's to charities can have profound impacts on all involved. Not only does the donation itself become more personal but it often allows you to be present within your community or alongside your clients.
Do you arrange for your employees to donate regularly to the Red Cross? Provide pro bono work to those in need? Volunteer during work hours in the community? Promoting opportunities with nonprofits that reflect your values is the most efficient way to donate — you can see the real-time effect it has.
At C&N, this is all-encompassed in our Corporate Social Responsibility Policy. The policy helps guide the firm’s volunteering purpose and direction, encouraging individuals to promote nonprofit causes close to their hearts.
While the business expense of volunteering can be calculated by hourly rate, the positive effect it can have on all involved can’t be measured.
Tax Efficiency
Are charitable donations included in your tax strategy?
It’s important to understand what you can and can’t claim as a deduction if it is. Charitable gifts and donations can be tax deductible, but only if the organisation is listed as a Deductible Gift Recipient (DGR).
There can be even more benefits when you donate to your own charity, such as further tax offsets and directly controlling the effectiveness of every dollar.
Setting up a charitable organisation can be one of the most rewarding ways to give back. If you’d like more information on the steps and requirements, our experts can help guide you through the process.
Taking the time to check the efficiency of your donation — for both the charity and your business — can greatly increase the impact it has this holiday season. Remember, you want to make sure it doesn’t just feel good, but that it does good.
Wishing you all safe and happy holidays this year — and efficient gift-giving!
Jarrod is the Managing Partner of Cutcher & Neale and heads up the Medical Accounting Services division within the firm. He has a passion for creating strong partnerships with clients that allow him to provide tailored advice so they reach their goals.
Jarrod has niche experience working with medical practitioners. His expertise allows him to guide clients from the initial stages of wealth creation as doctors in training, through to long-term wealth protection, tax planning, and retirement strategies.
