Integrating Charitable Giving Into Personal Budgets Fosters Discipline
TL;DR
- Integrating charitable giving into a personal budget, even with debt, instills financial discipline and gratitude by forcing prioritization of the 90% of income remaining after tithing.
- Committing to year-round charitable giving, rather than solely during holidays, addresses ongoing community needs and prevents a reliance on sporadic, less impactful donations.
- Giving of one's time, through volunteering or community service, provides a valuable alternative for those with limited financial resources, fulfilling the need to contribute.
- Verifying charity legitimacy through resources like the BBB Wise Giving Alliance or Charity Watch prevents funds from being diverted to scams, ensuring aid reaches intended recipients.
- Establishing a personal giving plan allows individuals to proactively allocate resources and time, enabling them to confidently decline unsolicited requests without guilt.
- Including children in charitable activities normalizes giving from an early age, fostering a lifelong commitment to altruism through observed behavior.
Deep Dive
Giving back, whether through money or time, is an achievable goal for everyone, even when financial resources are constrained. The key lies in intentionality, planning, and giving from a place of abundance after essential needs are met, which ultimately fosters gratitude and personal growth.
Charitable giving, when integrated into a personal budget, instills financial discipline and cultivates gratitude. Personal finance columnist Michelle Singletary emphasizes that giving should stem from one's "abundance" -- after securing necessities like housing, food, and savings. This principle is exemplified by tithing, where a percentage of income is dedicated to charitable causes, forcing a tighter management of remaining funds and fostering an appreciation for what one has. This approach encourages a consistent commitment to helping others year-round, rather than solely during holiday seasons, recognizing that needs persist throughout the year. For those with debt, the advice is to prioritize creditors but to allocate even a small amount, if possible, to charity, or to offer time as an alternative.
Beyond monetary contributions, dedicating time to volunteer work offers a valuable way to give back, especially for those experiencing financial strain. This can range from regular visits to nursing homes to involving children in community service, normalizing altruism from a young age. The act of giving, regardless of motivation--whether genuine desire to help, social pressure, or tax benefits--ultimately results in a positive impact on those in need. The source suggests that even giving for a tax write-off or due to guilt can still benefit charities and the community. To ensure donations are effective, it is crucial to vet charities for legitimacy through resources like the Better Business Bureau's Wise Giving Alliance and Charity Watch, and to be cautious of unsolicited requests. For emergent needs, platforms like GoFundMe can be utilized after verification. Creating a personal giving plan allows individuals to manage requests effectively, enabling them to say "yes" or "no" without guilt, thereby ensuring their giving is both sustainable and impactful.
Action Items
- Create giving plan: Define 3-5 annual charitable causes and allocate budget percentage for each.
- Audit donation channels: Verify legitimacy of 2-3 chosen charities using BBB Wise Giving Alliance or Charity Watch.
- Implement time-based giving: Volunteer 2-4 hours monthly for a cause aligned with personal values.
- Track giving impact: Measure personal financial or time contributions against defined charitable goals quarterly.
Key Quotes
"Now what I do say is a caveat is that you give out of your abundance you give out of your extra so you make sure you've taken care of your necessities roof over your head food on the table you know your savings and then you allocate that to charitable giving."
Michelle Singletary argues that charitable giving should stem from surplus resources after essential needs and savings are met. This principle ensures that giving does not compromise personal financial stability. Singletary emphasizes prioritizing necessities before allocating funds to charitable causes.
"I personally think that everybody should have some of their time devoted to giving to a charity or working and I have believed that since I was a teenager when I was a single woman and just had a little dog I used to visit a nursing home with my dog because they found that a lot of times people in nursing homes they don't necessarily connect with people but they connect with animals."
Michelle Singletary highlights the value of donating time as an alternative to financial contributions. She shares a personal anecdote about visiting a nursing home with her dog, illustrating how animal interaction can foster connection. Singletary believes that dedicating time to charitable work is a fundamental aspect of giving back.
"I think the charity's perspective like bring that guilt money I mean I don't care you know I think you give however you give if you are if you wanted to give for the tax break you know what go ahead and give because somebody's benefiting right that's right something is better than nothing I would like to think that even if people are giving for just the tax break the underlying that is still an effort to try to help somebody else."
Michelle Singletary expresses that the motivation behind giving, whether it's for tax benefits or to alleviate guilt, is less important than the act of giving itself. She believes that any form of charitable contribution, even if not purely altruistic, ultimately benefits someone. Singletary suggests that the underlying intention is often to help others.
"So right now there's a lot of need in jamaica for people and you get this email or text message and you are like your heart leads but I need you to lead from your heart and your head so before you give to anybody any charity please please check it out because you want your money to be used well and you don't want it to fund a scammer because that emboldens them to cheat other people."
Michelle Singletary advises a balanced approach to charitable giving, urging individuals to combine emotional impulses with rational due diligence. She stresses the importance of verifying the legitimacy of charities before donating to ensure funds are used effectively and not exploited by scammers. Singletary recommends using resources like the FTC and BBB Wise Giving Alliance for verification.
"And if you've got a plan you can say well you know what I these are these are the charities that I give to and this is not part of my charitable plan and that way when people keep coming at you you can say no and not feel guilty or or be guilted into giving when you already have a giving plan."
Michelle Singletary advocates for creating a structured giving plan to manage charitable contributions effectively. She explains that having a pre-defined plan allows individuals to confidently decline requests that do not align with their established charitable goals. Singletary suggests this approach helps avoid guilt and ensures intentional giving.
Resources
External Resources
Books
- "The Gifts of Imperfection" by Brené Brown - Mentioned as a resource for understanding vulnerability and self-acceptance.
Research & Studies
- BBB Wise Giving Alliance - Referenced as a resource for checking the legitimacy of charities.
- Charity Watch - Referenced as a resource for rating charities and assessing their legitimacy.
- Federal Trade Commission (FTC) - Referenced as a resource for checking out charities via its tip sheet at ftc.gov.
People
- Abigail Marsh - Mentioned as a speaker in the first class on altruism, advocating for starting altruistic actions with a plan.
- Big Mama - Mentioned as the grandmother of Michelle Singletary, who taught her about money and rescued her and her siblings.
- Michelle Singletary - Mentioned as the personal finance columnist for The Washington Post and a guest on the podcast, discussing charitable giving and budgeting.
Organizations & Institutions
- Epilepsy Foundation of Maryland - Mentioned as a charity to which Michelle Singletary gave and served on the board.
- Michael J. Fox Foundation for Parkinson's Research - Mentioned as a special segment guest and a dedicated organization for finding treatments and a cure for Parkinson's.
- University of Maryland at College Park - Mentioned as a recipient of Michelle Singletary's charitable giving.
Websites & Online Resources
- GoFundMe - Discussed as a platform for crowdfunding, with a mention of its system for checking campaign legitimacy.
- Washington Post - Mentioned as the source of the podcast and the publication for Michelle Singletary's personal finance column.
- Washington Post.com - Mentioned as the location to visit the Try This podcast page.
Other Resources
- Tithing - Explained as giving 10% of one's income or increase, typically to a local church, as a practice rooted in scripture.