When it comes to budgeting for charitable giving, the first step is to assess your financial situation and determine how much you can afford to give. Start by evaluating your income and essential expenses. Subtracting essential expenses from your income will give you a clear picture of how much discretionary income you have available. Once you have a good understanding of your financial situation, you can budget an amount for charitable giving that aligns with your values and goals without compromising your financial stability.
Once you’ve identified the causes and charities you want to contribute to, it’s time to set a giving goal. Consider what percentage of your discretionary income you can comfortably allocate toward charitable giving and set up a separate line item in your budget specifically for this contribution. Treat it as a regular expense, just like bills or groceries, to ensure that it remains a priority. Even small amounts can make a big impact.
One effective way to incorporate charitable giving into your budget is by automating your contributions. Set up a direct, recurring monthly donation directly from your account to ensure a consistent stream of support for the organization you have chosen. Remember, the amount you choose is a personal decision and should be based on your financial situation and priorities.
If a monetary donation is not in your budget, consider volunteering your time and skills in place of financial contributions. Your expertise can be invaluable to nonprofit organizations, and this hands-on involvement can offer a unique and fulfilling way to make an impact. Also, you may consider donating items you no longer want or use to an organization that can put these items to good use.
Periodically evaluate your budget and financial situation to determine if there are any adjustments needed in your giving strategy. Take the time to reflect on your giving goals and whether they continue to align with your personal values.
Remember, your budget is a powerful tool that can be leveraged to bring about positive change in the world. By making charitable giving a priority within your financial plan, you are contributing to the greater good and making a difference in the lives of others.
About the author
Jessica Teszlewicz is a Financial Educator at Tinker Federal Credit Union. Jessica earned her bachelor’s degree in Secondary Education from New Mexico State University, where the fire for education was ignited and fueled an 11-year career in public education. She joined TFCU in 2022. Learn more about TFCU’s Financial Education team here.