{"id":1167,"date":"2025-09-19T11:50:10","date_gmt":"2025-09-19T11:50:10","guid":{"rendered":"https:\/\/igorsplayground.com\/appcheckr\/how-to-fit-charitable-giving-into-your-budget\/"},"modified":"2025-09-19T11:50:10","modified_gmt":"2025-09-19T11:50:10","slug":"how-to-fit-charitable-giving-into-your-budget","status":"publish","type":"post","link":"https:\/\/igorsplayground.com\/appcheckr\/how-to-fit-charitable-giving-into-your-budget\/","title":{"rendered":"How to Fit Charitable Giving Into Your Budget"},"content":{"rendered":"

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\n The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities, or other investments.<\/span>
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\n Recently, while sharing <\/span>
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\n with a kindergarten class, I encountered an unexpected question: How should they incorporate donating money into their financial plans?<\/span>\n <\/p>\n<\/p><\/div>\n

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\n In my focus on budgeting basics, I had overlooked this vital aspect of financial literacy\u2014how we can assist others, especially as the holiday season approaches.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Determining how much of our budget to allocate for charitable giving can be complex. Charity preferences vary widely based on individual circumstances and income levels.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n \u201cSome clients are very charitably inclined, while others are not,\u201d says John Jones, a certified financial planner and investment advisor representative at Heritage Financial in Newberry, Florida. Factors influencing the decision to give can range from personal beliefs to potential tax benefits.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Financial experts provide some guidelines on balancing charitable donations with other financial obligations.<\/span>\n <\/p>\n<\/p><\/div>\n

\n First, examine your overall financial picture<\/span>
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\n Before setting a donation goal, Erin Lowry, author of the \u201cBroke Millennial\u201d book series, recommends reviewing your financial situation closely.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Assess your <\/span>
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\n financial goals<\/span>
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\n , including any debts, liabilities like mortgages or student loans, and cash flow needs. \u201cIf you feel financially secure and are ready to increase your charitable contributions, that\u2019s fantastic,\u201d she adds.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n There\u2019s no universal percentage for charitable giving, so choose an amount that fits your budget without causing stress, Lowry advises. \u201cI just want to ensure you\u2019re not incurring more debt while helping others,\u201d she emphasizes.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Once you determine what you can give, Lowry suggests consistently donating to reputable organizations that resonate with you, such as a local food pantry. This approach aids in planning ahead.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Additionally, consider setting aside funds for unexpected requests that may arise throughout the year.<\/span>\n <\/p>\n<\/p><\/div>\n

\n Choose recipients carefully<\/span>
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\n It\u2019s crucial to ensure that your hard-earned money goes to trustworthy organizations.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Scammers often target charitable individuals with fake websites or solicitations, particularly after significant events like natural disasters.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n \u201cAlways vet organizations before donating to ensure their legitimacy, especially before clicking on any links,\u201d Lowry advises.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Websites like GuideStar.org and CharityNavigator.org make it easy to verify organizations and confirm their credibility.<\/span>\n <\/p>\n<\/p><\/div>\n

\n Explore donating in non-financial ways, too<\/span>
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\n To assist others without straining your budget, Lowry recommends exploring non-financial donation options, such as volunteering your time.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n \u201cSometimes we become overly focused on financial contributions and forget there are other meaningful ways to help,\u201d she notes.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Volunteering with organizations, donating items to community pantries, or participating in virtual skill-based volunteer opportunities can significantly contribute to the greater good.<\/span>\n <\/p>\n<\/p><\/div>\n

\n Focus on budgeting the rest of your money<\/span>
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\n For those planning to give financially, it\u2019s essential to consider how charity fits into your overall budget, advises Brenton D. Harrison, CFP and host of the podcast, \u201cNew Money, New Problems.\u201d<\/span>\n <\/p>\n<\/p><\/div>\n

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\n If someone intends to donate 10% of their income for religious reasons, he respects that decision and instead focuses on how it impacts their other financial goals.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n This may involve brainstorming long-term savings goals, ensuring an emergency fund is established, and aligning your budget with strategies like the <\/span>
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\n 50\/30\/20 rule<\/span>
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\n for spending guidance.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n He emphasizes the importance of paying down personal debts and ensuring adequate insurance coverage.<\/span>\n <\/p>\n<\/p><\/div>\n

\n Consider the tax implications<\/span>
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\n Think about how donating can help minimize your taxes, even if that\u2019s not your primary motivation for giving. There are strategies that can make your contributions more impactful.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n \u201cPersonally, I tithe monthly but make larger payments every two years for tax benefits,\u201d Jones explains.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n For instance, if you plan to donate $10,000 annually, grouping two donations in one year could allow you to claim a higher tax deduction than the standard deduction, even though your total donation remains the same.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n Consider donating through a donor-advised fund or, if you\u2019re over 70 and a half, making contributions directly from your IRA to further reduce tax liabilities. Consulting a tax professional can provide clarity on these options.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n While it\u2019s easy to donate small amounts throughout the year, Harrison encourages planning ahead. \u201cTax deductions can be a strategy,\u201d he notes, allowing you to save money while doing good.<\/span>\n <\/p>\n<\/p><\/div>\n

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\n I believe the kindergarteners I spoke with would appreciate a thoughtful plan for giving, even if they don\u2019t yet grasp the complexities of taxes.<\/span>\n <\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities, or other investments. Recently, while sharing personal finance lessons with a kindergarten class, I encountered an unexpected question: How should […]<\/p>\n","protected":false},"author":1,"featured_media":1168,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":["post-1167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/1167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=1167"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/1167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/1168"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=1167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=1167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=1167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}