Creating a Budget for Charitable Donations - Sarah Laud

Giving doesn’t necessarily mean one should be a filthy wealthy Billionaire to donate. People can give their time, money, or both—here’s how one can create a budget for charitable donations.

Form a Habit of Donating Weekly, or Monthly

Giving shows an act of noble kindness that many people find a pleasure to give than to receive. Sharing is also associated with happiness. However, sometimes one can run out of funds, gifts, etc. If this happens, they should try to adjust to the typical rule of thumb when budgeting to hand in their donations.

It’s merely a 50/30/20 rule popularized by senator Elizabeth Warren in her book, All your worth: The Ultimate Lifetime Plan. It only means for everyone’s income tax division, 50% will go to their needs, 30% to their wants, and 20% goes directly to their savings plan.

Adhering to this rule will save many a great deal. One will know how to allocate their money and achieve a financial breakthrough. They’ll be sure that their charity funds are successfully allocated in the 30% Want category.

Select an Organization for Giving

If not careful, people can easily get carried away into putting all their money into different charitable organizations. I’m not disputing that it is wrong; rather, it may inconvenience them.

People don’t need to give out to all these institutions, and let’s not sugarcoat things. They can’t distribute donor funds to everyone as many charitable institutions are established per year.

One way to that will be smooth lining their giving spirit to find out their passions and select an organization that corresponds with it. Consider non-profit watchdog sites like; American Red Cross, Bill and Melinda Gates Foundation, The Salvation Army, etc.

Invest in Dollar Fund

If people regularly give out in more than two or three organizations, then considering a Dollar Fund would be the easiest option. These are entirely charitable investment accounts, in case they’re wondering what they are. These will help them put together all their giving in one donation without worrying about monitoring their taxes. Also, they can choose the option of donating privately. Nobody will notice if they’re the ones who contributed.