How to Budget for Charitable Donations
04/09/2025
How to Budget for Charitable Donations
Sometimes it can feel difficult to add charitable donations into a budget that already feels stretched by groceries, loan payments, and utilities. But adding charitable donations into your budget doesn’t have to be hard or time consuming!
Why You Should Add Donations into Your Budget
Adding donations into your budget is an easy way to remember to give on an ongoing basis. Many people prefer to give larger sums during the holiday season, but breaking up your donations during the year can help you be more intentional with your giving—especially if you treat them as a priority.
Always remember that how you give back to your community is entirely up to you. Not everyone will be able to add charitable donations to a monthly budget and that is okay! Donating your time through volunteering is just as valuable to your community.
Decide On Your Cause/s
Some people choose to focus on one cause or organization, while others will spread theirs through multiple things they want to support. The first step in adding charitable donations to your budget is to decide what you really care about. Maybe you are an animal lover or really care about ending hunger in your community. No matter what you choose, research groups actively working in your community to help solve these problems.
Next, reach out to your chosen organization(s) and see what they are most in need of. Most will be actively seeking monetary donations, supply donations, or volunteers for upcoming events.
Keep in mind that not all organizations are non-profits or qualify for donation tax breaks (more on that later). Usually, most people recommend making monetary donations to organizations where at least 60% of the funds go to the cause and not administrative purposes. You can research organizations at https://www.charitywatch.org/.
Add Your Donations to Your Budget
Now you are ready to add your donations to your budget. Prioritizing charitable contributions does not mean that you must put yourself into hard economic times. In fact, many organizations are happy to receive even $10. Really consider your needs and look at past years to decide how much and when you can give. If you have months where you know you will have more expenses, decrease the amount you give or choose to give your time instead. No amount is too much or too little!
Also keep in mind that some charitable donations are eligible for a tax break. While this shouldn’t be your main motivation, it may make things a little easier for you. If you are giving to a tax-exempt 501(c)(3) organization, you may be eligible. If you want to learn more about eligible contributions, visit the IRS website (https://www.irs.gov/publications/p526) or speak with your tax professional.
No matter how you factor charitable contributions into your monthly budget, recognize that you are making positive improvements to your community. As a community bank, The Savings Bank is dedicated to the advancement of the communities we serve. If you would like to see some of the ways we give back, check out our Facebook page!
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