Sometimes it feels good to give money to charity, it can be when we sponsor a friend, respond to an advert on the the television or give to someone in the street. We need to make sure that when we give money that our money is used in an effective way – simply speaking we want the most ‘bang for our buck!’ Simple things like looking at our budget and cutting out some of the unnecessary luxuries we buy every month can free up a few pennies to give to great causes, another way to get some funds to donate is to find good savings rates then you can donate the interest. However you choose to give money, you should follow this great advice for effective charitable giving.
Set a budget
Look at your monthly income and decide how much of it you can realistically give away without putting yourself in financial difficulty. People usually give, on average, between 1-3 percent of their income to charitable organisations. Only give an amount that you feel comfortable with, you want to be able to maintain your contributions so that you don’t let the charity down in the future.
Have a plan
It is never a good idea to just give money out at random to charities, you should try to make a detailed plan for your contributions. Once you’ve drawn up your plan you should try to stick to it as best you can.
Find the right charity for you
You should find a charity that you’re passionate about, one that has a cause you truly believe in. If you’re passionate about animals then look for a great charity that works with animals- there might even be one local to you that you can donate to and also spend time with. Maybe there is a cause that is close to your heart because it has affected a relative or even yourself in the past. Whatever you decide it is good to have a connection to the charity in some way.
Do your homework
When it comes to parting with your hard earned cash you should always make sure that you’re giving it to an effective organisation. Look online and read all that you can about the charity, this will help you make an informed decision. If there is a local charity then it’s perfect! You will probably know about them already and more importantly you will be able to go in and see them to have a chat. You will be able to get a better idea about their outlook and aims with a face to face chat.
Remember the tax benefits
When you give to charity you are able to claim a tax deduction on your donation. Remember to do this, no matter how big or small your donation is you should always be rewarded with a tax break.