Making a Charitable Giving Plan for The New Year
If your New Year’s resolutions include giving back, the time to construct a cohesive charitable plan is now. 2moda has laid out the most important considerations to help you compile a functional and effective giving plan.
Add It To Your Year-Round Budget
One of the main reasons people hesitate to donate is because they don’t know if they can afford to. It’s essential to include a budget when making a charitable giving plan for the New Year. A few effective ways to ensure you stick to your charitable budget for the year are setting up an account, sacrificing the small stuff, and recognizing that any contribution is better than nothing.
Set up a Donation Savings Account
Designate a separate savings account for donations only. Build this account by allocating amounts toward it from your monthly earnings or each paycheck. Label the savings account to avoid touching it. It can be tempting to transfer money from a savings account to splurge on luxury items, but you’ll be a lot happier with a donation, knowing it hasn’t been touched.
Choose a Mini Sacrifice
Whether it’s nixing the bi-weekly takeout order or limiting your Starbucks coffee, there are ample ways to curb spending habits. Reallocate this money toward your donation savings account. The more you save from mindful spending, the more you’ll contribute your earnings to an impactful donation.
Something is Better Than Nothing
The point of giving back is not to financially wear yourself thin. Avoid stressing over your donation amount, as any is better than none. Focus on your intentions on simply donating rather than the quantity of what you can provide. Plus, there are additional, non-monetary ways to give back if you want to contribute even more.
Selecting Where To Give
With all the charitable organizations there are, you want to be sure that your donation goes to one that best aligns with your values and causes you care about.
Make It Meaningful To You
Look over organizations’ missions to determine which speaks to you most. It’s crucial to confirm the organization is legit and understand how their donations are allocated. Well laid-out procedures, policies, and purpose are a good sign it’s a consistent organization. When you choose a cause that’s impactful to you, you’ll remember why you’re donating in the first place.
Get Folks To Join In
Check if Your Company Has a Matching Program
If your company has a donation match program, take advantage of it. The concept of a donation match program is that your employer matches the amount you donated to that chosen charity. It’s a simple and quick way to duplicate your donation and encourage workplace philanthropy.
Start a Community Fundraiser
A fundraiser is a great way to boost community morale. Get folks in your neighborhood, recreational groups, or sports teams to contribute to a communal fundraiser. Group fundraising is an exciting way to unite people for the greater good.
Social media platforms have changed the fundraising game. Instead of creating a birthday wishlist, you can start a fundraiser for your favorite charity for your birthday. Facebook and Instagram, for example, have streamlined the connection of users and donation pages.
Configure Tax Benefits
If you need any more incentive to give back, know that a donation can be beneficial to your finances. Charitable-related expenses can often be written off to cut you a greater tax break. Maintain proper documentation to monitor your giving throughout the year. For certain write-offs, the IRS may even require the presentation of a valid receipt. Donations to keep tabs on include money, textiles, and any expenses accumulated while volunteering. With the right qualifications, your donation can go toward your tax deductions.
To qualify for a tax break, your donation must adhere to the following:
- The donation must be presented to a tax-exempt organization. Verify the nonprofit you contribute to withholds a 501©(3) status. The IRS only considers donations to organizations with the 501©(3) status to be tax-deductible. You can also confirm with the organization what percentage of your charitable lump sum is deductible.
- Check that your charitable deduction is greater than the standard tax break before completing your taxes. Accumulate totals from the year to determine whether the tax deduction outweighs the standard. Another cost to consider regarding additional tax info is the price of any taxes-sorting software or third-party advisor services.
- Know that the IRS typically allows you to deduct up to 50 percent of adjusted gross income. However, some tax deductions are limited to 20 or 30 percent of AGI. Be sure to authenticate which deduction percentage you qualify for.
Other Ways To Give Back
If the new year looks financially tight for you, don’t worry. Making a charitable plan for the New Year can include donating your time, skills, and gently used items.
Look through unused and household items to accumulate a pile of helpful donation items. Local shelters and thrift stores are amazing resources for people in need within your community. Declutter your home and supply a charitable organization by donating gently-used textiles and appliances.
Volunteering and Its Benefits
Volunteer work is an incredible opportunity to support a meaningful organization. Many nonprofit organizations utilize volunteer assistance and offer plenty of ways to get the community involved. Volunteering can also serve as a wonderful bonding activity for family, friends, or coworkers to partake in together. Not only do you help those in need when you volunteer, but you also reap copious health benefits.
Studies reveal that volunteering lowers depression. The responsibilities set in most volunteer roles boost one’s sense of purpose, build life skills, and promote socializing. Those three things help boost mood and self-esteem.
Volunteer with an organization that’s personally meaningful to you so you can network with like-minded individuals. In volunteer positions, you’re stimulated physically and mentally, which provides intrinsic fulfillment. If you need to de-stress, volunteering may be able to achieve that too. With volunteer roles, you can redirect your energy from work or home stressors and focus on the elated feeling that comes from being generous with your time.
Revisit and Revise Your Charitable Plan
Once your plan for giving back through the New Year is set, inspect and revise it. A second or third run-through of the budget and timeline will ensure any glaring concerns are addressed and properly tweaked. A revision or two will create a realistic and achievable plan so you can make all your planned the donations in the New Year.
For donating assistance, review 2moda’s broad index of wholesale items. We have bulk school supplies and homeless care package kits at an affordable price to make your charitable ambitions feasible. Make the new year a good one by creating your donating plan today.