Donating or volunteering? How best to help
December 2015
As the season of giving is upon us, you may be turning your thoughts towards others — and what you can do to help them. But before you send off a donation to your favourite charity or show up at the soup kitchen, it’s worth considering what type of contribution would be of the most value.
Depending on the needs of the charity you support, your financial resources, your skills and your availability, there can be a variety of ways to help. Here are some things to think about to make sure your charitable intentions are put to the best use.
Funding a good cause
There are many reasons why a charity might prefer money to volunteers. Most organisations are in urgent need of funding - and every little bit contributes to keeping up their services.
Organisations often rely on cash donations to pay for much-needed things like rent, electricity and essential permanent staff. The training of volunteers comes at a high cost – not only financial, but in time as well. In contrast, financial donations can be put to work straight away.
Appreciatively, almost nine in ten Australians make a donation to charity each year[1] - with an average of around $460 per person. And we are becoming more generous, with the average donation size doubling over the ten years to 2013.[2]
For you, making a donation can be a convenient way to help the causes you believe in, without it impacting your work or family time. It’s also a good way to help organisations that operate primarily overseas or remote locations. Plus, all your cash donations over $2, to a deductible gift recipient, are tax-deductible, so donating to your favourite cause can work in your favour at tax time[3].
Lend a helping hand
On the other hand, many organisations rely entirely on volunteers and would be unable to do their work without them. So by donating your time to your favourite charity, you are effectively freeing up the funds they would otherwise use to pay workers.
Every year, nearly 4 million Australians volunteer a total of 521 million hours for a worthy cause - that’s the equivalent of organisations employing 265,600 full time staff. [4]
Volunteering is a great way to get involved in your local community and make new friends. Depending on what you choose to do, it can be sociable and fun. You can look for organisations that are in need of your particular skillset, whether you’re a lawyer, accountant, IT specialist or tradie. You can even use the opportunity to gain valuable work experience if you’re planning a career change.
But the best part of volunteering is you don’t have to be rich to do it. All you need is time - even a few hours a month can make an enormous difference to the lives of others.
Find out more
Need help working out the tax deductions on your donations or leaving money to a charity in your Will? For these and any other financial questions, speak to us today.
[1] Australian Charities and Not-For-Profits Commission, Nine out of 10 Australians donate to charity, 2015.
[2] The Australian Centre for Philanthropy and Non-Profit Studies, Current Issues Information Sheet, 2013
[3] Australian Taxation Office, Gifts and donations, 2015
[4] Australian Bureau of Statistics, Australian National Accounts: Non-Profit Institutions Satellite Account, 2013