7 Tips for Incorporating Charitable Giving into Your Budget

“We make a living by what we get, but we make a life by what we give.” – Winston Churchill

Alright, real talk. When I first started thinking about how to squeeze charitable giving into my budget, I had no idea where to begin. Like, how do I help people without completely wrecking my own financial goals? It turns out, it’s not just about tossing cash at a cause and hoping for the best. There’s actually a way to do this that makes sense for your wallet and still lets you feel like you’re making a difference. And if you’re anything like me, you want to be smart about it while still doing some good in the world.

Table of Contents:

• Why Giving Matters Now More Than Ever
• How to Make Room in Your Budget for Giving
• Don’t Miss Out on These Tax Benefits
• Get Your Family Involved in Giving

Why Giving Matters Now More Than Ever

Look, I get it. In a world where the economy feels like it’s held together with duct tape and good intentions, charitable giving might not seem like a top priority. But here’s the thing—right now, it’s actually more important than ever. The need is huge, and it’s only growing. People are hurting out there, from those struggling due to natural disasters to families who still haven’t recovered from the economic mess of the pandemic. By figuring out how to weave charitable giving into your budget, you’re not just throwing money at a problem—you’re becoming part of the solution. And you can do it without jeopardizing your own financial future.

Current Events Alert:
A recent report from Charity Navigator showed that while the demand for charity is up by 20%, donations have dipped as everyone tightens their belts. So yeah, it’s time to step up and figure out how to give wisely.

How to Make Room in Your Budget for Giving

So, how do you actually make charitable giving work with your budget? Here are some practical tips:

• Set a Goal: Whether it’s 2%, 5%, or 10% of your income, decide how much you’re willing to give. It’s like setting a savings goal, but for doing good stuff.
• Focus on What Matters to You: You don’t have to save the whole world. Pick one or two causes that really speak to you and channel your funds there. Your giving will be more meaningful, and you’ll feel more connected to the impact you’re making.
• Automate It: Yeah, I’m talking about auto-pay, but for charity. Set up monthly donations that come out of your account without you even thinking about it. Less hassle, more help.
• Check-In on the Regular: Life changes, and so does your financial situation. Make it a habit to review your giving plan every year to make sure it still works for you.

Don’t Miss Out on These Tax Benefits

Let’s not pretend we don’t care about tax breaks because, honestly, they’re part of what makes giving even more doable. Here’s what you should know:

• Itemize Deductions: If you’re giving big, it might make sense to itemize your deductions. It can help you get the most bang for your buck come tax season.
• Use Your IRA: If you’re over 70½, you can make a Qualified Charitable Distribution (QCD) directly from your IRA. It counts toward your Required Minimum Distribution (RMD) and won’t be taxed as income.
• Carry It Forward: If you donate more than you can deduct this year, no worries—you can roll it over into next year. Keep giving, keep saving on taxes.

Hot Tip:
With the recent extension of charitable tax benefits through 2024, now is the time to make the most of your donations. The IRS just gave you an extra reason to be generous.

Get Your Family Involved in Giving

Charitable giving isn’t just for grown-ups. Getting the whole family involved can be a game changer.

• Bring Your Kids In: Talk to your kids about why you give and let them help pick the charities. It’s a great way to teach them about empathy and responsibility.
• Do Something Together: Whether it’s a bake sale or a community clean-up, find a way to raise money or give your time as a family. It’s fun, it’s fulfilling, and it’s a great way to bond.
• Make It a Tradition: Turn giving into something you do every year. Whether it’s at Christmas, during tax season, or on birthdays, make charitable giving a regular family event.

Reality Check:
As we face ongoing challenges in our communities, from local food shortages to global crises, turning charitable giving into a family tradition means you’re not just raising kids—you’re raising good humans.

Final Thoughts

Incorporating charitable giving into your budget doesn’t have to be complicated or stressful. It’s about making intentional choices that align with your values and your financial goals. Whether it’s setting a percentage of your income, taking advantage of tax breaks, or getting your kids involved, there’s a way to make giving a sustainable and rewarding part of your life. And who knows? You might just find that in giving to others, you end up getting something pretty incredible in return.

If this article hit home for you, do me a favor—share it on social media and spread the word. The more people we can get on board with smart, sustainable giving, the better off we’ll all be.