The holiday season inspires generosity. Many Canadians choose December as the time to give back to causes they care about, whether through financial donations, volunteer work or gifting items to local charities. While most people give simply because it feels good, there can also be meaningful financial benefits that support your long term planning. Charitable giving and insurance connect more closely than you might think. From tax credits to using life insurance as a legacy tool, here is how giving during the holidays can create impact today and in the future. Why Charitable Giving Peaks During the HolidaysDecember is one of the busiest months for charities in Canada. With holiday campaigns, gift drives and increased community need, many people feel motivated to contribute. It is also the final month to make donations that apply to the current tax year, which encourages year end giving from individuals and families. Whether you are supporting a local organization or a national charity, your financial donation can provide significant benefits both for the cause and for your personal tax return. How Charitable Donations Affect Your TaxesWhen you donate to a registered Canadian charity, you receive a donation receipt. This can be used to claim federal and provincial tax credits. Here is what that means in simple terms: You get a portion of your donation back at tax time Tax credits reduce the amount of tax you owe. The larger your donation, the more meaningful the credit. This is not a deduction from income but a direct reduction of tax payable, giving you a real financial benefit. You can carry unused donation amounts forwardIf your donations are more than what you want to claim in one tax year, you can carry the rest forward for up to five years. This gives you flexibility in how you structure your credits. Couples can combine donation receiptsPartners can combine their donations on one tax return to maximize the credit. This often results in a larger benefit. Tax advantage aside, year end giving is a powerful way to support organizations that need help most during the holiday season. How Insurance Plays a Role in Long Term GivingBeyond seasonal donations, many Canadians use insurance as a tool to leave a meaningful legacy. Here are the most common ways insurance and charitable giving overlap. Naming a charity as a life insurance beneficiary You can name a registered charity as the beneficiary of your life insurance policy. When you pass away, the charity receives the proceeds tax free, and your estate may receive a charitable tax receipt. Donating an existing policyIf you have a life insurance policy you no longer need, you can transfer ownership to a charity. You may receive a tax receipt for the fair market value of the policy, as well as for any future premiums you continue to pay. Purchasing a new policy for charitable purposesSome donors buy a new life insurance policy with the specific intention of gifting it to a charity. This allows you to create a larger gift than you might be able to donate in cash. Using insurance to free up cash flow for givingStrong insurance planning can protect your family financially, which may give you the confidence to increase your charitable giving without affecting your long term stability. These options are often used by individuals who want to leave a lasting impact beyond their lifetime. How to Give Safely During the HolidaysUnfortunately, the holiday season is also a peak time for fraudulent donation requests. Here are a few ways to protect yourself: Make sure the organization is a registered Canadian charityAvoid donating in response to unsolicited calls or emailsKeep records of all receipts and confirmation numbersUse secure payment methods when giving onlineVerify that fundraising pages are legitimate Being cautious ensures your support goes exactly where you intend. _ Charitable giving during the holiday season is a meaningful way to support your community while also offering financial benefits at tax time. Whether you are making a one time donation or exploring long term giving strategies through insurance, every contribution helps strengthen the causes that matter to you. If you have questions about using insurance as part of your charitable plan, our team is here to help you understand your options and make informed decisions. Book a meeting with one our advisors to learn more.

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