How to Fit Donations into Your Finances

Financial Challenges

Sometimes, when you are planning your finances, it can be difficult to see where donations fit in and how you can reserve enough money each month to support your preferred non-profit. If you are struggling to pay your bills, donate to a charity of your choice, and stay afloat, here are some top tips on how to fit donations into your financial plan.

Consider End of Year Giving

If you are struggling to put aside enough money each month for your chosen charity, you should consider waiting until the end of the tax year before giving to a non-profit organization. Not only will this allow you to better understand the financial situation that you are in before you donate, but you can also deduct any charitable contributions that you make off your tax return, leaving you having to pay less tax per year. This makes the end of the year the perfect time to donate. Luckily, many charities have schemes that can allow you to get started with end of year giving. This will make it easy for you to donate anything from a couple of cents to hundreds of dollars.

Create a Budget

Fitting donations into your financial plan is impossible if you do not have a budget for you and your family. Your family’s budget is the groundwork of your financial planning and will allow you to spend without worrying whether you have enough for the essentials. A budget is easy to create and will take less than a few hours. All you need to do is to work out all your fixed costs and deduct these from your income. You can then split the money left over into categories such as charitable giving and entertainment, giving you an outline of what you are able to spend each month without going bankrupt or breaking into your savings.

Donate Spare Change

It is important to make donations if you have kids to teach them about charity. Another simple way of making donations part of your everyday life without noticing their impact on your bank account is to donate any spare change that you have. Many people find that they can afford to plop a few cents into collection boxes, which are often handily situated near the tills of stores and cafes. Not only this, but many retail units also now offer you the option of adding a donation or rounding up your purchase when you buy an item with your credit or debit card.

Add a Donation to Your Will

If you are struggling to make ends meet for your family and so are unable to make a monthly or even yearly donation to a favorite charity, you should consider showing your support after you have passed on and have no need for the money that you have earned. Although you might want to prioritize family and loved ones in your will, adding a donation, however small, can contribute to the long-term success of non-profit organizations and can ensure that your money is used for a good cause after you are long gone. This can continue your legacy and allow you to do good deeds from beyond the grave.