How to make the most of your festive season generosity

A Christmas donation to charity helps you feel good and gives others a better festive season, but there are some traps to look out for.

The season of giving is upon us and money isn’t the only way to help charities this Christmas and beyond.

While financial donations deliver instant cash to charities – and usually tax deductions to the donor – many charities also accept food, clothing, homewares and other household items.

And if you have no cash or goods to give, your time can also be a valuable donation.

St Vincent de Paul Society store manager Tamara Moyse says people wanting to maximise their generosity could contact their chosen charity to find out how they could have the most impact.

She recommends choosing a charity that accepts tax deductible donations and has a long and proven history.

Almost all major charities are registered as deductible gift recipients, which means if you donate money you can claim a deduction that reflects your marginal tax rate. For example, a person on an income between $45,000 and $120,000 gets 34.5 per cent of any money they donate back at tax time.

“If you are donating goods, consider whether you would give them to a friend,” Moyse says.

“Nationally, the cost for Vinnies to dispose of unusable goods amounts to many hundreds of thousands of dollars each year,” she says.

Tania Tonkin, left, and Tamara Moyse at a Vinnies store. Picture: Mark Brake

Accountant, financial adviser and regular donor Tania Tonkin says people donating money could check if their employer will match their personal donations, as some companies do.

“You can even donate property or shares to a charity of your choice, so long as you will not receive any benefit from the gift,” says Tonkin, a director at dmca Advisory.

She says donating helps you develop a gratitude mindset and understand “there are always those who are worse off”.

“Remember that donating doesn’t always have to be about money – your time and expertise is also valuable,” Tonkin says.

“You could put your hand up to help a charity serving the homeless ... or more simply even just take the time to visit those on your street who may not have loved ones visiting them this year.

“Write a card to show them someone cares, or drop in for a chat.”

Your skills can be valuable for charities through volunteer work, Tonkin says, and if you want to boost your impact and spread the love you can consider setting up recurring donations monthly to a charity.

When being generous, don’t forget to be on the lookout for scammers.

KnowBe4 security awareness advocate Jacqueline Jayne says charity tricksters are among the top festive season scams to watch out for.

When being generous, don’t forget to be on the lookout for scammers. Picture: Supplied

“The holidays are traditionally the time for generosity and giving – it’s also the time that the cybercriminals try to trick money out of people that mean well,” she says.

Jayne says scammers make out-of-the-blue phone calls pretending to be charities, send fake emails and create fake websites and social media pages.

“Donate to charities you already know via their official website, or you call them directly,” she says.

“Mobile phones also play their part in charity scams. You might receive a test message that looks like it is from a charity with a link to click. Clicking on the link could launch malicious software on your mobile device or take you to a fake website where you make a donation using your credit card.”

MAXIMISE YOUR GENEROISTY

1. Look for charities that align with your own values so you make a connection.

2. Find evidence of tangible projects where your charity has an impact.

3. Make sure the charity is registered as a deductible gift recipient, so you get a tax deduction.

4. Consider spreading the generosity among several charities rather than just one.

5. Look beyond cash to donate presents, clothing, food and household goods – but only if in good condition.