I went through my first income tax audit last year.
The letter arrived months after we received our return. I assumed the review was triggered because I claimed some of my husband’s education credits for the first time.
I was half correct.
They wanted the paperwork for the credits, but they also wanted something else: our charitable giving receipts.
Canada offers a very generous tax credit to those who give money to charity. For us, this has huge implications for our taxes, often playing a key role in the end result: a return.
But while the tax benefits are a nice bonus, that’s not why we give.
Getting our priorities straight
Giving is a priority for us today, but that has not always been the case.
For many years, we held back on giving. We didn’t have much money to begin with and besides, if we focused on paying off all our debt first, we would be able to give more later, right?
Maybe there’s some truth to that. I’m not sure. Looking back, it’s clear that approach was motivated by fear.
It didn’t line up with our values, either.
So we made a change.
What our giving looks like
When it comes to giving, we choose causes that are having a positive impact.
We make one-time donations throughout the year, but most of our giving is long-term. The two most significant ways we give are through tithing at our church and sponsoring a child through Compassion Canada.
These two things are listed in our budget under monthly expenses. As non-negotiable as the rent or the car insurance, they are paid each month, even when the budget feels tight.
And while I am sure there are many other things we could do with that money, I can honestly say we have yet to approach a situation where being generous has caused us great financial hardship.
Why we prioritize giving even when we’re paying off debt
We see being generous with our money as an act of service.
It’s a personal choice for us. And honestly, I feel a little strange writing about it. I don’t want to suggest we are doing anything special or make anyone feel bad. The reality is personal finance is exactly as the name suggests: personal. Everyone’s situation is different.
In our case, we know we are richly blessed. We have debt to pay off, yes, but we are also very aware of our financial privileges and the windfalls that helped us get where we are today. We believe the best way we can acknowledge and honour this is by being generous and blessing others with the resources we do have.
Final Thoughts
Choosing generosity over fear is worth it to us, but it is not always easy.
It has been a revealing process. Making the shift showed me how selfish I can be with my resources when I let fear guide me instead of holding the things we have loosely.
Paying off debt is a priority for us, but it’s not our only goal. We don’t have much to give, but we are willing to use what we can to help meet the needs of others when we can. Living in accordance with our values is just as, if not more, important to us than paying off debt.
Do you support any charitable causes?
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