• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Budgeting / Debt Relief
  • Home / Health / Auto
  • Credit Cards & Scores
  • Tax Tips
  • Kids / Students & Money
  • More
    • Electronics & Gadgets
    • Health & Beauty
    • Hobbies & Crafts
    • Home & Garden
    • Jobs & Money
    • Outdoor Fun
    • Travel

Personal Finance Guide

Real People. Real Experiences. Real Helpful.

a Fun Times Guide site

search

Home » Jobs & Money » Tax Tips » 3 Good Reasons To Make Charitable Contributions

3 Good Reasons To Make Charitable Contributions

Pin
Share
Tweet

We write about products and services that we use. This page may contain affiliate links for which we receive a commission.


Charitable contributions may be the last thing you have on your mind during tough times. 

But, the truth is, giving away money, time, and items is always a good idea. 

Here are the top 3 reasons to consider making charitable donations this year…

 

donating-clothes-by-Jenna-Rocca.jpg

#1  Tax Deductions

You are going to give a portion of your money to someone.  The government is going either to take more than you think is fair, or you will give money and tax deductible goods to the charity of your choice. 

If you itemize your deductions, you will definitely want to donate money.  Each year, when I do my taxes using a Tax Cut program, I always calculate our taxes without the charitable deductions first.  Then, after viewing my refund or what I owe, I plug in the amount of my charitable contributions — which includes a church tithe, as well as clothing and housewares donations.  It is immediately apparent that I get a good deal of the money I donated back. 

If the gifts are deductible, the actual cost of the donation is reduced by your tax savings. For example, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings). As your income tax bracket increases, the real cost of your charitable gift decreases, making contributions more attractive for those in higher brackets. The actual cost to a person in the lowest bracket, 15%, for a $100 contribution is $85. For a person in the highest bracket, 35%, the actual cost is only $65. Not only can the wealthy afford to give more, but they receive a larger reward for giving.  — Charity Navigator

 

#2  Faith

Religious people give charitable donations for several reasons:

  • Some want to support the work of their church. 

  • Some believe that by giving, they open themselves up to receive. 

  • Still others feel it is their spiritual obligation. 

I have personally struggled with the whole "to tithe, or not to tithe" scenario myself.  But I’ve discovered that I love helping others, so I have set myself up to be used financially when I did not give through the church. 

Now when I meet someone who needs help, I can point them to the church that I have given my money to — knowing that they have the means and also a process set up to help people who aren’t  just looking for free money. 

Growingyourchurch.com offers 5 reasons Christians should tithe.  Their reasons include: to advance the religion, to foster fellowship with church members, to be obedient to God, to deny oneself, and to experience personal blessings. 

#3  It Just Feels Good

Like I just mentioned, I used to give money to anyone I thought had a need.  I did it because I could and because I was in a position to share.  It just felt good.  While I learned to not hand out money to individuals, helping someone in need has always made me feel happy. 

It is a fact that givers are happier people than non-givers. According to the Social Capital Community Benchmark Survey, a survey of 30,000 American households, people who gave money to charity in 2000 were 43% more likely than non-givers to say they were "very happy" about their lives.  Source

However, you are advised not go broke giving money to charity.  You don’t want to give just because you are asked, but instead you’ll want to sit down and plan out your charitable contributions.  You should give the bulk of your contributions to one charity that you are very familiar with. 

 

RELATED: 

Charitable Giving Facts: Why People Give 

How To Spot Fake Charities

6 Surprising Reasons To Give To Charity

Where Do You Give To Charity, And Why?

Andrea
Andrea

I have been a certified tightwad striving for financial freedom since I became pregnant with my first child — and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future — which will include sending 2 kids to college and early retirement.

Pin
Share
Tweet

Filed Under: Jobs & Money, Tax Tips Tagged With: charities, gifts, investments, saving money, tax credits and deductions

Primary Sidebar

About Us

LynnetteWith input from Financial Advisors, (a Tax Accountant and an Investment Manager), I share helpful tips regarding money and finances -- including debt relief, insurance, budgeting, and investing for retirement. My goal is to help you save more, spend less, and invest for the future by sharing honest, tried & true budgeting tips and tools. When I'm not saving for the future and helping others save for theirs, you can find me at the corner of Good News & Fun Times as publisher of The Fun Times Guide (32 fun & helpful websites).

Lynnette: View My Blog Posts

AndreaI have been a certified tightwad striving for financial freedom since I became pregnant with my first child -- and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future -- which will include sending 2 kids to college and early retirement.

Andrea: View My Blog Posts

Top Searches

auto insurance bankruptcy banks books car buying charities childcare Christmas clothing and shoes college consignment and thrift stores credit cards and gift cards credit rating death and dying debt relief frugal tips gas and car costs gifts grocery shopping health insurance home buying homeowners insurance identity theft investments jobs life insurance loans monthly bills and utilities office items and housewares online shopping organizing tips phone restaurants retirement saving money selling things senior living Spousal issues stocks student loans and financial aid tax credits and deductions Taxes 101 tax updates today's economy traffic tickets

Footer

  • Facebook
  • Pinterest
  • RSS
  • Twitter
Fun Times Guide logo
Shop Our Favorite Items

Copyright © 2004-2021 The Fun Times Guide | Privacy Policy | About | Contact | Sitemap