Give generously through donations and other acts of kindness

More Aussies are doing it tough this Christmas and the need for donations is great. Here’s how to give generously and intelligently.

Children can learn to be generous from their parents and grandparents.

The season of giving is looking cloudy for many Australians this year as inflation and interest rates hurt, and that means those of us with the means – financial and physical – to help now have greater responsibility to step up.

Money is the simplest tool to assist others but there are other ways to be generous including donating food, clothing, household goods, your time and expertise.

I have a dream of walking down city streets handing out $50 and $100 notes to those who need them, but issues around funds, fear of being mugged by onlookers and procrastination have so far held me back. One day it shall happen.

For those wanting to make a practical difference today, here are seven ways to spread seasonal generosity.

1. CHARITIES

Most major charities have Christmas appeals and say demand for their services this year has surged, with many people approaching them for the first time because of the cost-of-living crisis.

Cash donations are the simplest form of giving, and you get a tax deduction for it when over $2 and handed to most major charities.

Charities also accept donations of other stuff, but say you should only do this if it’s good enough to give to a friend – because piles of dodgy donated items are thrown out annually.

2. WISHING TREES

The Kmart/Salvation Army wishing tree appeal has been running for 35 years, and people can similarly donate gifts and goods at drop-off points in workplaces and elsewhere.

You may not get the tax deduction but should get satisfaction. It also allows a personal touch for those who want to donate a specific gift.

Cash donations are the simplest form of giving, and attract tax deductions. Picture: iStock

3. REGULAR DONATIONS

It’s always a good time to start a regular giving habit, through monthly donations deducted from your bank account that can be set up in minutes.

Most people won’t notice the money missing because they don’t physically hand it over. Then at tax time there can be multiple $600 tax deductions for those who’ve parted with $50 a month per charity.

4. HELPING OTHERS HELP THEMSELVES

The best financial tip I’ve heard from Barefoot Investor Scott Pape was more than a decade ago, when he introduced me to Kiva.org, which allows anyone to provide interest-free micro-loans to people all over the world to help them establish and grow their own business, or often simply build a toilet for their home.

The loans are repaid then you choose to help someone else, so the money keeps on giving.

5. VOLUNTEERING

Those without financial means can donate their time to help others. You can check with your favourite charities to see if they need physical help.

Otherwise, Volunteering Australia has a govolunteer.com.au service that matches helpers with help wanted, and it currently displays more than 10,200 opportunities nationally.

6. LASTING LEGACY

Longer-term and larger donations can be set up in wills and estate plans, where people can give directly to worthy causes or set up a trust with larger sums that distribute the earnings each year to chosen charities.

Be clear in your will about where you want your money to go.

7. TEACH THE SPIRIT OF GIVING

Inspiring children to donate some of their time, toys or money to help those less fortunate will help ensure that kindness continues through generations.

Children learn best by watching and copying their parents and other family members, so this will involve some effort on your part too.

Originally published as Give generously through donations and other acts of kindness