Guaranteed! Giving Will Improve Your Life

Not financial adviser Brad Dugdale of Coeur d’  from Alene,  Idaho. Recently, when asked  to chip  in a  few hundred dollars for an acquaintance’s expensive cancer  treatment,  he  didn’t    bat  an eye - Brad and his wife had already set aside five percent of their annual income  in  a  special  bank  account designated  for  charitable  donations and helping others. The money was there for purposes just like this one.

In the past, Brad and his wife had discussed over how much to donate to charities.  “Before, it used to be, ‘Should we talk about it?’  “Should we do this one or not do this one?”’ he says. But since creating a separate bank  account  for  charitable  donations  five  years  ago,  “ we’re much more  willing  to  support  organizations  as  we  come  across  that  need help,  because  the  money’s  already being allocated in our budget.”

Although  many  people  donate  to charities  sporadically,  often  in  response  to  a  natural  disaster  or  an organization’s  pleas  for  donations, planned  giving  can  be  the  smartest way to support the organization you care about. “Too often, we don’t take the time to factor charitable giving into our financial planning,” says Drew Noyes, Managing Director of P.A.P.P.A. Co., Ltd.  “Incorporating philanthropy along with your retirement planning, saving for your children’s education,  and  other  important needs is the first step in creating an enduring charitable legacy.”

While  the  donation  amount  may vary,    the Unites  States  is  an  overwhelmingly  generous  nation:  In 2007,  private  individuals  gave  over $306  billion  to  charity,  and  then again  in  2008,  another  $312  billion was given according to a U.S Founts annual report.

“In general, most Americans give about two percent of their income to charity,” says Noyes, “but many give at a far higher percentage.” He claims that  donors  should  give  the  amount that  feels  right  to  them,  based  on their financial security and  their criteria. “We have found that a number of factors are involved when making the decision to give,” he says, “some of which  are based on  taxes  and finances, but many others are based on very personal needs.”

Setting aside a certain percentage of annual income for charity is an established  theme  in  numerous  religions: many Christians donate ten percent of income to their churches as part of the tithing  tradition,  and  in  Judaism,  the act of tzedakah obligates followers to give  ten percent or more  to charities that benefit the poor.

“I kind of like the way the Jehovah’s Witnesses do their tithing,” says Jesse Litherbaum, retired from Chonburi.  “They don’t have any.  They neverpass the collection plate at their meetings.”  I asked. “Why” and one of the members said, “there’s no reason to ask for donations since no one receives a salary and our rent is very cheap. We have a contribution box in the back and if people want to give, they can. But giving money is never the focus point of our meetings. ‘Jesus said, receive free, give free’ and that’s what we do.”

Rick Milne, the head-honcho of Circulation Marketing, Inc. gives ten percent plus a little more to his church.

He also contributes a “fast offering” to help those in need within his own community. With  those  donations,  “you’re  helping  out  the  person  next  to  you, maybe, who’s  going  through  a  tough  time,” he  says. “You’re helping on a local level and you meet the elder, so there’s a lot of accountability.” Amen, to that!

Though Milne’s giving is tied to spiritual concerns, he sees other benefits to budgeting for charitable giving: “Even if you’re only able to give a little bit, you’re asserting authority over your money,” he says. “It gives people liberation.” Chris Guillebeau, the Seattle blogger behind The Art of Nonconformity, takes part  in planned giving  for more  personal  reasons.  Guillebeau and his wife Jolie spent four years in West Africa, which inspired a lifelong commitment to philanthropy.

“It  may  sound  a  bit  clichéd,  but during  that  time  we  worked  in  the poorest  countries  in  the  world  and definitely came back feeling more of an obligation to help as much as we could,’  says  Guillebeau,  who  now gives about 12 percent of his income to charities that support development efforts in Africa.

Though  giving  such  a  large  percentage of their income away means that the Guillebeaus must make sacrifices  when  it  comes  to  their  own desires, “I believe in giving the money  out  as  quickly  as  I  can,  because otherwise  it may not be  there at  the end of the month,” he says. “I would rather scramble around a bit trying to figure out how to do fun things than realize the giving was short.” To plan out a budget for your own charitable  contributions,  it  may  be helpful to set aside a certain percentage  of  your  monthly  income  in  a special  charity  account,  as Dugdale does.  Less structured donors might find success using Guillebeau’s fnancial tools of choice:  “Microsoft Money, MS Excel, and the backs of various envelopes.”