Enabling the change you want to see in the world
A rookie donor's guide to charitable giving
Feel less comfortable encountering a Salvation Army Bell Ringer this holiday season, but you’re not sure why? Maybe it’s a sign you’re ready to establish a new policy for yourself. As a student, you could leave charitable giving to the grown-ups. But once you’re a full-blown adult wage earner, perhaps the time has come for you to make intentional choices about who, when, and how much to contribute towards helping others.
So, let’s tackle some questions rookie donors might have about how charitable giving works.
Why should a young person just starting out give some of their hard-earned money to somebody else?
Even if you have only a little change to spare, charitable giving is a chance to be part of the change you’d like to see in the world. No matter your situation, there will always be people who are worse off than you are. Giving is a way of sharing some of the resources you have with others.
Instead of seeing a Salvation Army bell ringer or a fundraising solicitation you get in the mail as somebody trying to get something from you, try looking at it as an invitation–someone has a good idea for how to help others but can’t pull it off by themselves.
There’s no shortage of problems in the world to solve. And there’s no way any of us could even begin to solve them individually. So, these invitations to contribute are a way for you to help make solutions possible.
Plus, charitable giving benefits your well-being too. When the United Nations collected data from around the world for its 2022 World Happiness Report, it found that, even after controlling for wealth and other measures of prosperity, donating money is one of the six strongest predictors of life satisfaction.
Didn’t John Mulaney imply that people who donate money are suckers?
In his Kid Gorgeous special, Mulaney ridiculed the idea that his alma mater deserved any additional money beyond the tuition he’d paid. However, he also spoke of donating clothing and household items to Goodwill.
Mulaney has even hosted a charity show to support My Brother’s Table, an organization his grandmother volunteers for.
You should always be a cheerful giver. If you feel like a sucker when asked to donate, it’s probably a sign that it’s not the right cause for you. But people who give to charitable causes aren’t suckers.
How much money should an amateur philanthropist like me be giving to charity?
Since charitable giving is optional, the amount you give is entirely up to you. Like any other line item in your budget, you need to make sure you can afford the outlay.
You may have heard of tithing, a practice rooted in religious traditions like Christianity. In biblical terms, tithing refers to giving 10% of one's income to support the work of a church or religious community. However, many people include charitable organizations and nonprofits under the umbrella of beneficiaries they assist.
Of course, even if you wanted to, setting aside 10% of your income is likely unrealistic when you’re just starting out.
But it’s perfectly respectable to start smaller. Maybe set aside 1% of your income if you can afford to do so. You can always increase your percentage of giving over time.
The important thing is to establish a practice of sharing what you have with others–not the amount.
What’s this I hear about charitable donations being tax deductible?
If you itemize deductions instead of taking the standard deduction on your federal tax return (this tends to happen once you become a homeowner and have a mortgage), you can deduct any monies you contribute to charity from your taxable income. When this happens, you effectively don’t pay taxes on the money you donate to charities.
It is essential to keep good records of your donations (letters acknowledging your gift, receipts, etc.) when you get to that stage of the game.
How do I pick a charity?
You probably already come across plenty of worthy causes as you go about daily life. Your sibling or a friend might be participating in a danceathon or 5K. You’ll see an organization in your feed or hear about it on the news. You’ll get a fundraising appeal letter in the mail.
Choosing an organization to support is the fun part. Spend a few minutes learning about what a charity is up to, and you’ll feel good about helping to make a difference.
Here’s a peek at some of the lesser-known charities my husband and I have chosen to support to help inspire you:
Guiding Eyes for the Blind helps change the lives of people facing the daily challenges that blindness and vision loss present. It costs as much as $50,000 annually to train and care for a guide dog throughout its working lifetime. Guiding Eyes has graduated more than 10,000 guide dog teams since its establishment in 1954.
Sam’s Hope is dedicated to helping to keep pets and their people together. Approximately one million dogs and cats are surrendered or abandoned yearly because their owners can’t afford to provide for the basic needs of their pets. Sam’s Hope has pet food and veterinary care assistance programs to help people and their pets stay together.
Prison Fellowship works to restore those affected by crime and incarceration. In addition to helping people address the cycle of brokenness that landed them in prison, their programs also focus on caring for prisoners’ families and helping to strengthen the bond between children and their parents behind bars.
United Spinal Association offers services and resources to America’s 5.5 million wheelchair users and the broader disability community. By empowering and advocating, their goal is to create a world where people with spinal cord injuries and disabilities and wheelchair users can realize their full potential and live life to its fullest.
Adopt a Platoon helps ensure that deployed United States Service men and women are not forgotten by a grateful Nation. They provide care packages to improve the quality of life and raise morale for those serving overseas in the Army, Air Force, Navy, Marine Corps, Coast Guard, and Special Forces.
For Pete’s Sake helps people take a break from cancer. Patients, caregivers, and their children receive a Travel Respite Experience, or if they cannot travel due to advanced-stage cancer, they receive a Staycation Respite Experience in their own home. After a Respite Experience, FPS provides continuing emotional support by offering mini-breaks throughout the year.
If reading about the minor miracles an organization pulls off lights you up inside, it may be a sign that the organization is a good match for your philanthropy.
How can I tell whether an organization is legit and effective?
The Federal Trade Commission offers tips for donating safely and avoiding scams.
Options for evaluating charitable organizations include:
Charity Navigator rates charities on impact and results, accountability and finances, culture and community, and leadership and adaptability. You can also search its database for charities that align with your passions.
Charity Watch dives deep to evaluate how efficiently a charity uses donations. You can review detailed reports of their top-rated charities for free.
The Better Business Bureau Wise Giving Alliance issues reports on hundreds of nonprofits with a national or international profile.
Is it better to give a single organization $100, or $25 to 4 different organizations?
According to Charity Navigator, giving small donations to multiple organizations is much less impactful than combining all those small gifts into a significant gift for a single organization. Even if you can only afford to donate in small amounts throughout the year, they recommend recurring donations to a single organization instead of splitting your donation among multiple groups.
Donating to fewer organizations also helps make the giving more impactful for you because you can more easily focus on learning about the work of the organizations you support.
How can I afford to give to every charity that sends me something in the mail?
You can’t. Remember that the charities sending you those solicitations typically don’t know your capacity to give. They’re just taking a shot, hoping you might kick in a little support for their cause. So it’s on you to know how much and when you can afford to give.
As much as you might like to help everyone, you can’t. But just because you can’t help everybody doesn’t mean you can’t help anybody. So, choose to support those organizations that are the most meaningful to you.
If you have committed to sharing a portion of what you have with others, it becomes easier to turn down organizations when necessary. You’re not saying no to helping others–you’re already helping somebody else–you’re just saying not right now.
What if I can’t afford to donate right now?
Money is only one of the resources that keep charitable organizations going. They also rely on volunteer labor. If money is tight, you could contribute your time and talent instead.
For instance, the Salvation Army is looking for bell ringers. Over the past few years, the Salvation Army has reported a decline in the funds raised through its Red Kettle campaign, which they attribute mainly to a decrease in volunteers. Before the pandemic, more than 2 million people volunteered to be bell ringers; last year, only 1.4 million people did. There’s no guarantee you’ll end up with a primo spot outside of Macy’s like Phoebe Buffay did, but no doubt it would be a worthwhile contribution.
If there’s a question about charitable giving that you’re still wondering about, let me know in the comments.
Katie Couric, journalist and former anchor of the CBS Evening News, asked the many remarkable people she'd interviewed over the years to share lessons from their lives. The result was The Best Advice I Ever Got.
Stay tuned for more samples from The Best Advice I Ever Got in the next issue.
In the olden days, moms used to clip articles from newspapers for their kids if they thought it was something they needed to know. I’m keeping an eye out for things that you might have missed that may be helpful to you.
This week’s clips:
Social psychologists have found that people who have less give more. Part of the reason is because they are more compassionate and sensitive to the needs of others.
Philip Yancey reflected on the good news in Hans Rosling’s book Factfulness: Ten Reasons We’re Wrong About the World—and Why Things Are Better Than You Think. Rosling, a Swedish physician, devoted his life to correcting misconceptions about the state of the world.
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