Understanding Charitable Allowance: Your Questions Answered

What You’ll Discover in This Blog

1. 1. Anyone can set up a Charitable Allowance. Parents, grandparents, aunts, uncles, mentors, and trusted adults can all create an allowance to help kids learn about generosity and practice giving.
   2. The allowance is funded through an Impact Account. Your Impact Account lets you add money which you can use to fund your kids’ allowance. You can set the allowance amount and frequency and adjust them anytime. You get an instant tax receipt whenever you add money to your account.
   3. Kids can give to any Canadian registered charity. This lets them support causes they care about by giving to charities making a difference in those areas, such as animal rescue, environmental protection, youth programs, and more. 
   4. Kids can give on their own or with your guidance. Older kids with their own email can be invited to become an admin to their Impact Account. This allows them to log in and choose where to give. For younger kids who are not made admins, their parents, family members, or other trusted adults can guide them in giving or give on their behalf.
   5. Give on the mobile app. The Impact Account is available on iOS and Android. Our app lets you access existing allowances and search and give to charities. However, currently, setting up and managing an allowance can only be done on a desktop.

Charitable Allowance makes it easy for parents, grandparents, aunts, uncles, or mentors to help kids and teens practice giving. By setting up a monthly allowance for them to support causes they care about, they can discover how good it feels to give back while learning valuable life skills like social responsibility, financial literacy, and how to make thoughtful choices.

If you’re considering setting up a Charitable Allowance, you may have some questions about how it works, who can contribute, and where kids can give. We’ll dive into some of those topics, including specific details you might be wondering about. For general FAQs, you can always check out our Help Centre to find answers.

Who can set up a Charitable Allowance?

Anyone who wants to help a kid learn about generosity and giving can set up a Charitable Allowance. This includes parents, grandparents, aunts, uncles, mentors, or any trusted adult with an Impact Account can create an allowance.

How is the allowance funded?

To set up a Charitable Allowance, you first need an Impact Account. This account lets you add money and receive an instant tax receipt. You can then use the money in your account to set up a Charitable Allowance, add your kid as the recipient, and decide its amount and frequency. We recommend starting with $10 a month and adjusting it anytime.

If I want to create an allowance for someone else’s kid, how can I explain the concept to their parent?

You can introduce the concept to the kid’s parent or guardian by sharing our Charitable Allowance webpage and video. They’ll help explain how the allowance works and whether it’s a good fit for their kid.

What role does the creator of the Charitable Allowance play?

When you set up a Charitable Allowance, an Impact Account is created for the kid, then you set the allowance amount and frequency. Once done, the allowance is added to the kid’s account. While the account is in their name, it is owned and managed by you, the creator of the allowance.

Here are a few things you should know:

• You control how much money is added and can give another trusted adult admin access.
• Older kids can be invited as admins to manage their charitable dollars if they have their own email. Admins can send money to charities but cannot add money to the account.
• You can guide kids in exploring causes and deciding where to give. 

Can kids give on their own if they’re an admin?

Yes! Kids can give on their own as an admin:

1. For younger kids – The adults, you or an admin, handle the giving, guiding them through the process and making decisions together.
2. For older kids or teens – With their own emails, you can invite them to become an admin. They can then log into their Impact Account and start giving. However, you and other trusted adults can still track and supervise their activity.

How can kids use their Charitable Allowance? 

Although kids must use their allowance for charitable activities, they have flexibility in deciding how and where to give. With their charitable dollars, they can learn how to make thoughtful decisions while exploring causes to support. This also provides them with the opportunity to develop financial literacy as they manage the use of the charitable dollars. 

Here are a few ways they can use their allowance:

• Give to charities – They can give to more than 86,000 Canadian registered charities, including organizations that help causes they resonate with, like animal rescue, environmental protection, and youth programs.
• Transfer to another Impact Account – Kids can send charitable dollars to a friend or a family member’s Impact Account and let them decide how to give.

How often can kids give?

Kids can give whenever they’re ready. Although a monthly allowance makes it easy for them to give regularly, they can choose to save up for a bigger impact. We suggest that you start their allowance at $10 a month to help them get into the habit of giving.

Who is responsible for giving?

We believe that when a kid is responsible for making decisions about giving, it can lead to valuable learning experiences. As the creator of the allowance, you can decide if you want the kid to be able to access and use the Impact Account without you by making them an admin.

If your kid is made an admin of the account receiving the allowance, they can log into the account and use it on their own. If they aren’t made an admin, they won’t be able to access the account at all. 

Can kids receive money from others?

Yes! A kid with a Charitable Allowance can receive money from multiple trusted adults, so family members can contribute to their giving. An Impact Account user can send charitable dollars directly to a kid’s email address if they already have a Charitable Allowance. The money will automatically be added to their Impact Account.

Charitable Allowance is a great option for family members who want to send kids charitable dollars regularly, while a one-time gift is more suitable for those who just want to send occasionally, such as for special occasions like birthdays, holidays, graduations, and more.

Do you have a mobile app?

We do! The Impact Account is available on iOS and Android. However, setting up and managing a Charitable Allowance is currently only available on desktop. The mobile app only allows admins to access existing Charitable Allowance accounts and search and give to charities. We’re actively working to bring more features to the app in future updates—stay tuned!

Help your kids practice giving with a Charitable Allowance

Give your kids a hands-on opportunity to learn about generosity through their own actions. Set up a monthly Charitable Allowance for them to support causes they care about. Make giving a natural part of their everyday life or engage them in meaningful discussions about generosity. With an allowance, you’ll help them build important life skills like social responsibility, financial literacy, and how to make thoughtful choices. Create a Charitable Allowance today!