At DonorsTrust, we speak with lots of people about their charitable
giving. Many give generously but want to find a way to do it more efficiently,
rather than cutting an end-of-year check or two with what reserves remain after
their Christmas shopping. These people often express a desire to get serious
about their charitable giving and say they look forward to doing so “when they
can afford to.”
Let me make the counterargument—you can afford to now! You
don’t have to be a millionaire to make a difference, and it’s even possible to
keep giving when big-ticket items like paying for college tuition seem to get
in the way.
Many DonorsTrust clients are average folks who decided to
get more strategic and intentional about their giving. Even if you think of
yourself as a modest giver, there might be some overlooked ways you can grow
your charitable potential. Here are a few you shouldn’t overlook:
Slow and Steady: The most obvious is to start smaller
than you’d like. Stash away a few hundred dollars from every paycheck in an
automated way. You’ll make giving a priority by working it into your monthly
budget and having funds set aside throughout the year. Put those funds in a
high-interest savings account or a donor-advised fund and watch them grow. You
might be shocked by how easy it is to give – and to accumulate charitable
capital—when you do it consistently throughout the year.
The Windfall: Big year-end bonus? Sell a house for a
tidy profit? Surprise inheritance? Win a lawsuit? These might be rare, but when
they happen, make sure to carve out a portion for charitable giving right when
you receive it. The quicker you do, the easier you’ll find it to be generous.
When you daydream about what you would do with that winning lottery ticket,
think about the initiative or group you’d like to support before you figure out
what car you’d like to buy! Bonus—setting some aside for charitable giving will
benefit you on the tax side as well.
Hiding Under the Mattress: Remember when you bought Amazon
stock 25 years ago because you thought the idea of an online bookstore was neat?
Ok, most of us aren’t that fortunate, but you perhaps own a few stocks that
have appreciated over time. Avoid the capital gains tax and donate stocks you
don’t urgently need, creating a nest egg of giving for yourself and claiming a
tax deduction to boot. A DonorsTrust giving account makes it easy to claim your
tax deduction right away and stop worrying about fluctuations in share price.
Receive to Give: We’re closing in on the holiday
season, and birthdays pop up every year. This may be a better tip for younger
givers, but ask those with a few more resources to seed your giving habit by
donating into a donor-advised fund that you start. They get the benefit of the
tax deduction and you get to build your charitable muscles. When you’re not
sure what to put on your Christmas list or hear yourself saying, “No, no, I
have everything I need” to that generous relative, think about inviting that
person into your charitable goals.
Above all, in turbulent times, the real question around engaging in giving is, can you afford not to? Today’s problems aren’t going to solve themselves, nor is government going to swoop in to the rescue.
But you can be a part of the solution. So why not jump in? You
can do more than you think you can when it comes to getting your charitable
habit funded. Be creative and get going!
