Even with challenges brought by the pandemic, charitable giving reached an all-time high in the United States in 2020. And it continues to grow every year.
Americans today across states, incomes, and ages, give more generously and regularly. If you have extra income that you want to pay forward or you want to support a cause you care about, your gifts can make an incredible impact on your community and your life.
Here are 5 ways why you should donate to charities:
1. Your donations are an investment in your community.
When you give a gift to a non-profit or cause you care about, you are investing in that mission to continue growing. Non-profits and charitable causes rely on donations from individuals to achieve their day-to-day work, like keeping the lights on at a children’s hospital or purchasing essential products for people in need.
2. Charitable gifts are tax-deductible.
If you donate to a qualified organization, you can deduct your charitable contributions during tax time. But certain restrictions apply. Stay up to date about what organizations qualify using the IRS Tax-Exempt Organization Tool. Donating is a great way to reduce your taxes in the name of a cause you care about.
3. A gift at any level makes a huge difference.
You don’t need to make a four-digit dollar donation to make a difference in a non-profit. If you give a recurring gift of $10 or more a month to a non-profit, you show consistent support for that cause. Its impact also builds over time. It’s also important to know that the American dollar goes further in other parts of the world. If you’re interested in giving to causes that build up our global community, research the organization before you give using Charity Navigator or Give.org.
4. Charitable giving supports your money management.
By setting aside a certain amount or percentage of your income to donate, you ensure that every dollar you earn has a purpose, from saving to spending. Incorporate giving into your monthly or annual budget by reviewing our guide to setting up your monthly budget.
5. When you give back, you feel good.
Paying it forward with charitable giving is one of the best ways to feel connected to your community and know that you’re making a difference. Your commitment to giving what feels generous to you is a life-long practice. And the gifts you make for your communities and causes will live beyond you.
Want to learn more about where to start when you want to give back? Listen to our episode of Dream, Plan, Live. We sit down with community leaders in non-profits from the Iowa Great Lakes Area for their guide to giving.
Looking for more ways to give back?
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