Giving back is an important part of our culture and including charitable donations in your budget is one way to accomplish some good.

If you are short on funds, you can donate your time and expertise to your favorite causes.  Every organization needs money, but they also need volunteers helping with the actual mission or helping to run the organization.

How do you decide how much to give in a year?  Did you specify a dollar amount that is an appropriate amount for your budget?  Or did you start with a percentage of your take home income that you would like to give each year?

Is your charitable giving hit or miss? You can dilute your giving efforts without a charitable gifting plan. Where do you want your limited dollars to go?

Do you have several causes that are your priorities?  If yes, then target your dollars to those organizations.  Whether it is the environment, your religion, education, the arts, supporting the troops, health issues or a food bank or whatever.  Take some time and decide what you really care about.

How can you stretch your giving dollars?  Often charitable organizations have a matching program set up during key fund raising times.  Those programs give you an opportunity to magnify your gift.

Also, does your employer match some level of charitable giving?  If so, you want to make contributions early in the year.  Many times the matching funds of your employer are limited and funds can run out before the year ends.

If you have a real interest in an organization, you can improve your financial literacy by getting involved on the board or a committee.  Each of these organizations has to raise money, decide how to spend the money, decide how to invest the money for future years and carry out their mission.  You may have skills or expertise that is badly needed in the organization.

Before you get involved in a charitable organization, please vet it.  Does a large percentage of the budget go toward its mission?  Is the organization committed to transparency and accountability?  Is the charity making an impact?  These websites can help you do this:   Charity Navigator  GuideStar  The BBB Wise Giving Alliance

Giving back is a great feeling and everyone should try to find organizations that have a mission that matches your interests.

Kowalczyk Comment: DonorsChoose is an organization that helps you find ways to help teachers and schools.

Kowalczyk Location:  I’m back in Chicago or Chiberia as it is more commonly known this winter.  Now we are starting the big thaw.

 

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