Can You Afford to Give to Charity?

As the end of the year approaches, you’ll notice that charities are asking for your donations. You may have a worthwhile cause that you’d like to support but think you don’t have the financial resources. Here are some ways you can serve your community and make a difference without upending your budget.

And to get a status check on your financials, you can reach out to a Farm Bureau professional anytime.

Donate Items

It’s easy to donate clothing and small household items to charity, and many organizations will even pick these things up at your home. Get a jump on New Year’s decluttering and go through your closets, cabinets and garage for things that are still in good condition but that you don’t need or want. 

You can deduct the value of your donated goods from your taxes. This donation pricing guide can help you figure out what your donations are worth. 

Volunteer

Your time and expertise are valuable. Whatever your skills are, you can probably put them to use for the charities you care about. You can launch an email newsletter for them, plan a fundraising event or train volunteers. 

You might not think you have skills that make a difference, but just about anyone could take shelter dogs for walks, provide childcare while parents are learning new skills or pass out water to runners at a fundraising 5k.

Donate Your Raise or Bonus

If you get a salary increase at work, or your company gives a holiday bonus, donate some or all of this money. It’s not part of your spending plan, so giving it away won’t impact your budget, and it can make a difference to a cause you care about. 

Round Up on Your Spending

Some banks and apps let you round up the amount of a transaction to the next dollar and save the difference. For example, if you pay $37.42 for groceries, the charge is rounded up to $38 and the $0.58 goes into savings. 

That might not sound like much, but all those cents add up! You could end the year with a good donation that doesn’t hurt your day-to-day.  

Use Gift Cards

Your favorite charities might have wish lists that you can purchase from using credit card points or gift cards that are already in your wallet. For example, animal shelters often need pet food, cat litter, puppy pads and laundry detergent. Organizations that support low-income families might need grocery gift cards, diapers, backpacks or school supplies. 

Make Room in Your Budget

If donating to charity is important to you and you weren’t able to make it happen this year, build it into your budget for next year. Take a look at your spending and see where you could prioritize differently. 

For example, it’s easy to spend $10 or more on a fast-food meal. Skip that just once a month, and you’ll have $120 to donate to a charity at the end of the year. 

Tip: Either make a scheduled monthly donation to charity or set aside the money you plan to donate in a separate account or bucket. That way, you won’t be tempted to spend it on something else.

How Much Should I Donate to Charity?

The amount of money you donate is a personal decision. Many people donate based on their values, upbringing and life experiences. In terms of the average charitable donations by income, people who donate typically give 6% of their adjusted gross income across all their charities each year.

Grow Your Giving

If charitable giving is important to you, we can help. Meet with a Farm Bureau agent to review your budget and strategize ways to build donations into your financial plan, now and in the future.