Charitable Gifts: How to Save Money Aside for Donations Effectively

Giving to charity is a generous act that a person can perform. It can show support for your causes, it can help foster programs in your community, and it can make you feel good, as we all know that the act of giving is a reward in itself. Along with that, giving to charity can be tax write-off come April 15th. Few would argue that donating money to a cause is not worthwhile and fulfilling. However for some, having money to give can be difficult. Young people at the start of their careers may be on a tight budget, or freelancers with varying incomes might have trouble putting the money aside while maintaining their lifestyle. As I am a member of both of those categories, I have developed a system which I use in order to ensure that I have a gift when the time comes to give one.

First, decide what you want to give. Take a real good look at your finances. What do you have left over for spending on every paycheck? How much are you spending from that? This is also a great time to look at where your money is going and evaluate any frugality practices you could employ to save some. For instance, do you know that there are children starving in Africa? Then why are you eating out at nice restaurants three times a week, huh? Obviously I'm kidding, but a look over your spending never hurt anyone. Then decide what suits you. For example, my grandmother always said, "If we all gave a dollar a day..." So that's what I decided to do. I have a transfer of seven dollars go from my checking account into my savings every Monday. You could do whatever amount you determine whenever you decide; twenty dollars every paycheck for example. You could also have a contingency plan for windfalls. I usually say that any amount of "free money" like a large tip at work or a stimulus check, anything over $200, ten percent of it automatically goes into the charity fund.

The next step is to determine a place to keep it. An envelope of cash under your bed is tempting. A savings account at a bank different from your regular bank is a safer bet, because the three to five day wait you may have to endure to transfer the money to your checking account makes it more improbable that you will dip into it for a shopping spree or a night on the town. It doesn't have to be anything fancy or high-yield, just as long as it keeps your money safe. Again, this is entirely based on your spending habits and entirely up to you.

Once you are successfully saving money aside, it is time to choose where you'd like it to go. Take a look around the at the groups helping in your community. Charity starts at home after all, and fostering good things in your own neighborhood can effect your life on a daily basis. That's because these are the problems you see everyday, so helping to work on them will feel extremely fulfilled and like your making a difference. For gifts to national non-profits, sites like Charity Navigator offer a look at how charities use their funds and what they stand for to help you make a decision. The most important part of choosing a charity though, is taking a look at your values. If you're having trouble deciding where to give, make a list of 5 to 10 things, places, people or values that you care about. Take a good look at what these things represent. Is a person on your list a survivor of cancer? Take a look into research charities. Is one of your values providing for others? Hunger charities might be for you. Is your Alma Mater on the list? Perhaps they have a scholarship fund.

The final step is to determine a schedule and stick to it. You can give once a year, every month, every six months, or whenever the account reaches a certain amount. The more likely you are to dip into the pot, the more often you should give it away. Remember to keep any canceled checks and receipts of gifts together in a safe place for tax purposes later on. If you follow this system you will be able to donate a sizable amount and make an impact on the causes you believe in.