newsprompt.coCOMMUNITY SERVICES
Making charitable donations or practicing regular charitable giving either through donating money, goods, or time is undoubtedly a good habit. It’s important to give back, particularly if you’ve achieved success. You can even think of paying it forward, if you like; either way, practicing a little generosity is a great use of your time, energy, and money.
Beyond the sometimes vague concept of giving back, though, figuring out the details of charitable donations can be a challenge. Are gifts that give back enough? How should you choose a charity? How much should you donate? There’s no hard-and-fast rule, but there are some smart expert tips that can help you figure out the right answers for you and your family. Read on to learn everything you need to know about charitable donations. Donating to the causes you care about not only benefits the charities themselves, it can be deeply rewarding for you too. Millions of people give to charity on a regular basis to support causes they believe in, as well as for the positive effect it has on their own lives.
Choosing a charity:
Search for national charities on Give.org, to get a look at their financials, including administrative costs and program expenses. “For insight into the effectiveness of smaller, local charities, check with your community foundation. You could also try volunteering first. Sometimes just working the water station at a road race can give you a sense of an organization’s ethos think of it as a fact-finding mission. If you’re new to an area and want to donate to a local cause, ask neighbors or coworkers for their favorite places or go to a trusted site. Plug in your city and what type of cause you’re interested in.
Avoid charity scams:
We’ve all heard the scam stories the phony appeals for homeless vets, the woman who faked a carcinoma, etc. The best way to avoid being had is to know (a) the person who started the campaign and (b) exactly what the donation will pay for. (GoFundMe deducts a 2.9 percent processing fee from donations, so if you know someone who’s rebuilding after a wildfire, for example, you can just give the person cash directly.) As a rule, never give money via phone or email, even if the cause sounds legit. And keep in mind: Contributions aren’t tax-deductible unless a qualified nonprofit has organized the fundraising. Use the IRS’s Tax Exempt Organization Search to confirm that a charity is eligible to receive tax-deductible contributions.
How much to donate:
Just like housing, car insurance, and groceries, donations should be factored into your budget, says a great financial coach in Temple, Texas. “Base the amount you give on your monthly income,” is the advise. If you can afford it, make charitable giving about 10 percent of your budget. And get in the habit of donating once a month rather than at the end of the year. To maximize your donation, opt out of the incentive gift, like the tote bag or coffee mug.
Positives of charity & donation:
- Experience More Pleasure
In research conducted by the National Institutes of Health2, participants who chose to donate a portion of $100 they were provided enjoyed activated pleasure centers in the brain. Although this experiment was controlled and scientific, it did show that donating money simply makes you feel better, which is something we can all benefit from. - Help Others in Need
We don’t live in a perfect world, and there’s never going to be a perfect time to give but there are always people out there in need of help. Whether interest rates are rising, the economy is in the doldrums, or even if you’re experiencing financial difficulties of your own, the reality is that when you donate your money, you help others who need it. - Bring More Meaning to Your Life
When you donate money to charity, you create opportunities to meet new people who believe in the same causes that inspire you. That, and making a real impact on those causes, can infuse your everyday life with more meaning. If you’ve been stuck in a rut, whether personally or professionally, sometimes the simple act of donating cash can do the trick and reinvigorate your life. - Promote Generosity in Your Children
When your kids see you donating money, they’re much more likely to adopt a giving mindset as they grow up. I write from personal experience. I’ve donated money to a variety of charities over the years and have always made sure to inform my eight-year-old son of my efforts. Last Christmas, when he and I were shopping at a mall, he spotted a kiosk for a charity and rather than spending some of his allotted money on Christmas gifts, he asked if we could sponsor a hungry child overseas. We signed up then and there. Do the same with your kids and you might see similar results. - Motivate Friends and Family
When you let your friends and family know of your charitable donations, they may find themselves more motivated to undertake their own efforts to give. It takes a village to address issues such as world poverty, scientific advancement, and early childhood education. Stoking passions in the folks around you is a very positive and tangible effect of your own giving.
Reasons to donate:
1 GIVING TO CHARITY MAKES YOU FEEL GOOD
Donating to charity is a major mood-booster. The knowledge that you’re helping others is hugely empowering and, in turn, can make you feel happier and more fulfilled. Research has identified a link between making a donation to charity and increased activity in the area of the brain that registers pleasure proving that as the old adage goes, it really is far better to give than to receive.
2 GIVING TO CHARITY STRENGTHENS PERSONAL VALUES
In researches, why we give, a feeling of social conscience was the most widely-given reason to give to charity. Whatever type of charity work they supported, 96% said they felt they had a moral duty to use what they had to help others, a sentiment very much rooted in their personal values and principles.
Having the power to improve the lives of others is, to many people, a privilege, and one that comes with its own sense of obligation. Acting on these powerful feelings of responsibility is a great way to reinforce our own personal values and feel like we’re living in a way that is true to our own ethical beliefs.
3 GIVING IS MORE IMPACTFUL THAN EVER
Many people are concerned that their donations to charity may be reduced by tax or administrative costs, preventing the full amount from reaching the people or causes they really want to help. Thankfully there are ways to make the most of every donation to charity.
If you’re a UK taxpayer, you can boost the amount of every donation you make by giving through Gift Aid, an Income Tax relief created to help charities get the most out of the funds they receive. As Gift Aid enables the charity to recover the basic rate of tax on your donation, the scheme adds 25p to each £1 you give at no extra cost to you.
There are many other ways to give to charity tax-effectively too, such as by donating straight from your salary before tax is deducted through a payroll giving scheme, donating shares to charity or leaving a charitable legacy in your Will. These methods of giving ensure your chosen charities benefit as much as possible from your support.
Every Little Bit Helps:
Are there ways that charities and individuals can help overcome our tendency to limit generosity? Fortunately, several studies suggest that there are. You don’t need $10,000 to make a difference in someone’s life. In developing countries, even just a few U.S. dollars could result in a week’s worth of meals for a starving child, much-needed medical attention, and even improved schooling. Don’t just think of your cash donation from an American economic perspective. Often that money can go a lot further elsewhere in the world.
Encourage:
Following natural disasters like a hurricane or earthquake, many people rely on the generosity of strangers to help rebuild their lives. Donations to disaster relief organizations, local food and diaper banks, and other charities can make a big difference to people in great need.
However, we know that not everyone who can donate to these organizations ends up opening their wallets. In fact, a phenomenon known as compassion collapse (or fade) can make people less generous following catastrophic situations or any time we are faced with many people in need.
