Charity may begin at home but with smart planning, you can fit worthy causes into your budget too
It’s a dilemma: You want to help those in need, but your budget seems to barely cover your groceries as it is. And yet there are good reasons to give in to the nagging feeling you could be doing more. Not only is there so much need in SA, but charities are the first to be cut from donor budgets when times are tough, which makes this a great time to chip in and do your bit. Consider the benefits: A study that was conducted by Harvard University found that it is indeed better to give than to receive. While participants predicted that spending on themselves would bring them more joy, it actually made them happier to give something to someone else. So get a happiness boost and help someone out!
How much is enough and how much can you afford? The amount you give to charity is entirely personal, but it’s important to first work out what you can spare without breaking the bank. On average, those who donate to charity give between two and 10% of their after-tax income, but you need to be sensible about it. Old maxims such as ‘charity begins at home’ have wisdom to them. Start with how much you need to cover every month: bills, bond or rent, retirement funding and a buffer for unexpected expenses that pop up (so you won’t need to use your credit card). Then, work out how much you can afford
to put towards charity.
THE RECEIVING END
Spend time finding worthy causes that mean something to you – child welfare, literacy, animal anti-cruelty or care for the elderly are examples. Once you know where you’d like to donate your money, seek out a charity or NGO that works for you. Talk to people at your community centre, child’s school, or religious community, to see if there are small organisations that need your help. Alternatively, visit any of the following websites that help connect donors with charities:
• Greater Good SA (myggsa.co.za)
• For Good (forgood.co.za)
TIP THE SCALES
Now that you’ve got a better idea of how much you can spare and where, here are five top tips for fitting charity into your budget:
Monthly donations
One of the easiest ways to commit to a worthy cause is to donate a set amount each month, which gets debited straight from your bank account. If you are lucky, your employers might have made this easy for you by giving you the option of donating
to a charity directly from your salary.
Save up
Set up a savings account into which you deposit money each month, so you have a sizeable chunk to donate at a time. You could pick a new cause every year to which you’ll then give your saved donation.
Small sacrifice
Make a commitment to the cause you choose by looking at non-essentials, such as Dstv, your daily muffin or that gym membership you never use, and rather opt to pledge that amount to charity.
Team up
One way to make a small amount more significant is to rally friends and family into pooling money to support a cause. This is also a great way to tackle charitable events such as fun walks or runs – the more people entering, the more funds raised. Pick a few events a year, diarise them and encourage your friends to join in.
It’s better to give
Having a big birthday bash? Rather than gifts or flowers, ask your guests to donate to your favourite children’s hospital or an animal welfare organisation instead. Include the banking details of the charity on the invitation.
AND THERE’S MORE
As long as the amount doesn’t exceed 10% of your taxable income, your donation is tax-deductible. Make sure to always request a section 18A receipt from the organisation in question. This must be submitted to SARS should they question the deduction.
Words by Lisa Templeton
Photo by Liza Summer On Pexels
