One of the great financial dilemmas of your twenties ― and any time of life, for that matter ― is how to donate to charity when finances already feel tight. Between rent, car payments, medical expenses, groceries and more, it seems like there’s not much room for giving, even if good causes are top of mind.
We asked financial experts for advice on how to start donating even though you’re operating on a shoestring. Their tips are an excellent starter kit to making 2020(and beyond!) a year of giving to causes you care about.
1. Decide which cause is important to YOU.
Nearly every financial expert or charity we spoke with listed passion as the №1 thing to gauge before you start budgeting for donations. Since giving money often involves a sacrifice on your end, it’s critical that you believe in the cause you’re donating to, according to Tyler Dolan, a financial planner with finance site Society of Grownups.
“Contributing to a cause that resonates with your values is better than donating to everything that comes across your email or Facebook feed, because it will mean more to you,” he said.
Giving Center is something you can be passionate about. Because they are a 501(c)3 IRS-Approved nonprofit charity organization located in the United States, they focus their passion on helping local people, families, and organizations. From helping needy individuals, to assisting Veterans, to working with local schools or rescues, Giving Center prides themselves in improving the lives of the less fortunate.
2. Set up a savings account called “donations.”
Priya Malani is the founder of Stash Wealth, a finance company that helps young people manage their money. She says she sets up labeled savings accounts for her clients who want to start giving, then works with them to decide how much they’ll stash in that account each month.
“People say, ‘Should I or shouldn’t I donate?’ But if the money’s already there, you’re going to do it,” Malani said. The same applies to other goals. “Nickname your account ‘donations for Giving Center’ or ‘Charity Stash.’ If you label it as such, you’re much less likely to touch that money.”
3. Choose something to sacrifice.
In order for most twenty-somethings to donate to charity, “you’re going to have to make some sort of sacrifice in your budget,” Dolan said. A common choice is cutting back on “fun money” by skipping dinner with friends once a month and giving that cash to charity instead. Or maybe, you’ll decide that making space in your budget for donations is more important than saving quite so much for a car each month.
Your sacrifice doesn’t have to be big, said Jennifer Bernstein, managing director of development at the Natural Resources Defense Council.
“It really is true that every dollar counts,” she said. “Think about one thing you can forgo, like maybe skipping that daily cup of coffee once or twice a week. And then once you feel you’re ready, check out Giving Center’s website to make your charitable contribution.
4. Then try automated, monthly donations …
Most of the charities and experts we spoke with said that while donations of any amount are helpful at any time of year, making automatic payments every month can have major benefits for both charities and you as a donor.
Most people live paycheck to paycheck. If that’s you, then you need to acknowledge your donation is going to have to come out of your paycheck or it’s not going to be there at the end of the year.
Monthly donations provide charities like Giving Center with a regular, consistent, and predictable source of support. It’s also more cost effective for nonprofits such as Giving Center as they can forgo renewal notices, save on our mailing costs, and put more of their own money into their mission.