Have you ever wondered, “How much should I give to charity?” or, “Am I giving enough?” The answer isn’t as always clear cut as many would hope because the amount you ultimately decide to give is a personal decision, and completely up to you. But just like financial planning, you’ll want to develop a charitable giving plan to maximize and strategize your generosity. Don’t know where to start? Here are 5 questions you’ll want to consider when determining your overall personal giving strategy:
1. HAVE YOU DECIDED WHICH CHARITIES YOU WANT TO SUPPORT? GIVING CENTER MAKES THE DECISION EASY!
Taking the time to determine which causes you want to support should be the first part of your charitable giving strategy. Think about the causes you’re passionate about and research organizations you want to support. Giving Center makes your decision easy. Giving Center’s mission is to improve the lives of the underpriveleged. We help individuals in needs, familes, Veterans, the homeless, students, those affected by COVID 19, nonprofits, and many others. You can read more about Giving Center here .
2. HOW WILL YOU GIVE?
From one time donations to monthly gifts, there are several ways you can make a financial donation to your Giving Center. Whether you’d like to donate a vehicle, donate a boat, donate financially, or commit to a donor advised fund. Contact us here for more information.
One of the most strategic ways to give is monthly giving. When you set up a monthly donation, you control how much you give each month and make your expenses more predictable and make you feel great giving throughout the year. Plus, monthly donations helps Giving Center too! With reliable monthly income, we can better plan their spending because they have steady funds they can count on each month.
If you’re looking to make a larger donation and have financial investments, a donation of securities may be right for you. Since the elimination of the capital gains tax on securities donations in 2006, a donation of securities or mutual fund shares is one of the most tax-efficient ways to support your favorite charity and reduce your tax bill.
3. HAVE YOU DECIDED HOW MUCH YOU WILL GIVE PER YEAR?
Generally, a good starting place is to determine a percent of your income you are comfortable giving. Deciding to give a percentage of your income allows you to give what you can, even if your income changes. Generally 1 percent of income is a starting point for many. If you already give and live comfortably, you can challenge yourself to give a higher percentage of your income. Or, get creative with your budgeting! You can challenge yourself to give the cost of a daily latte instead of buying one, or to brown bag your lunch once a week and give the money you would have spent to Giving Center.
4. HAVE YOU RESEARCHED CHARITABLE TAX BENEFITS?
When making or re-evaluating your giving plan, remember to factor in the tax credits you’ll receive when you claim your charitable donations on your annual tax return. Taking into account how the money you’ll save on your tax bill can allow you to give more throughout the year. To help you determine how much you can save, we’ve created an easy-to-use tax calculator.
5. WHAT OTHER WAYS WILL YOU GIVE?
Giving comes in all shapes and sizes and it all makes a difference. Whether you choose to volunteer or donate real estate, there are so many ways to give charitably without making a financial donation.
But don’t forget! Just like your financial plan, be sure to review and revise your plan on at least an annual basis. During your review, consider how much you’re giving. Could you do more? Are there additional charities whose work you value and would like to support, and how would they fit into your plan?