How much to give to charity?
Charitable giving isn’t just about money – it’s about what you believe in, and the kind of legacy you want to leave. Perhaps you give because your community has helped you and you want to return the favor. Or maybe it’s part of your spiritual values.
Still, it can be tricky to know exactly how much to give to charity, and which organizations to donate to. You want to do good and have the highest possible impact, without wrecking your own budget. When it comes to giving to charity, a little planning goes a long way.
As a leading global crowdfunding platform, GoFundMe has resources that let you connect with verified charities and strategically donate in a way that benefits both your wallet and your chosen cause. You can also use GoFundMe to set up accounts like donor-advised funds (DAF) to keep all your information in one place.
THow much should I donate to charity?
Before you decide how much and what to give, check your budget. Write out what’s coming in, what’s going out, and what’s left. That leftover amount (your discretionary income) is where generosity usually starts.
For a simple guide, try the 50/30/20 rule:
● 50% covers your needs (housing, food, transportation)
● 30% goes to your wants, or lifestyle choices
● 20% is for both savings and giving
You don’t have to follow this ratio exactly. Maybe part of your “wants” becomes a donation. The goal isn’t perfection, it’s awareness.
For example, if you’re earning $100,000 a year and giving 5%, that’s $5,000 annually. Someone else might give $20 a month consistently. Others still prefer to choose a round number: $500, $2,000, or whatever fits your income. The point is to make it a habit, not a burden.
A quick snapshot:
● The average American gives about 2-3% of their income.
● High-income households often go higher, both for impact and tax benefits.
To help you decide, a donor-advised fund (DAF) can allow you to contribute when it’s tax-smart (say, before year-end) and then spread your charitable donations across the year. The money in your DAF can even grow tax-free, giving you more to share later.
The impact of charitable giving
Donating to charity can have a huge impact on your community. There are plenty of different causes to donate to – education, homelessness, hunger, healthcare, and animal welfare, to name a few.
Of course, many people donate to charity because they genuinely want to provide essential resources, such as food or shelter, to people in need. Maybe they’ve experienced hunger or homelessness before, and want to help others avoid these same struggles. Whatever the specific reasons, emotion and passion tend to be the main drivers for most people who donate.
When you give to charity, you can often see a notable difference in your community: people feel safer, healthier, and happier, and, as a result, society functions better. Physical and mental health improve, not only for those receiving your donations, but also for the giver.
Charitable giving can be a fast and effective way to bring about positive change in your local community.
Donating to charity: Ways to give
Once you decide how much to give to charity, you may be wondering how to give to charity. There’s more than one path to charitable giving. For example, you may choose to donate directly to a nonprofit, or you can consider donor-advised funds for long-term planning. Here are some ideas for ways to give:
- Direct monetary gifts via cash, check, or credit card.
- Donating appreciated stocks.
- Grants from donor-advised funds.
- Non-monetary gifts such as non-perishable food, clothing, hygiene products, or toys.
These are among the most popular ways to give to charity today. Keep in mind, though, that not all donations to charity have to be monetary or even material. You can also donate to charity with your time or skills – perhaps you can volunteer at a soup kitchen or offer to create newsletters for your cause. No matter your schedule or resources, you can find a way to give that works for you.
Find out more about starting a fundraiser with GoFundMe
Claiming tax on charity donations
Many charity donations are tax-deductible, so they not only benefit the charity receiving your donation, but they also benefit you in the long run. The IRS has specific rules, however, about what exactly qualifies as a charitable contribution.
Gifts to qualified 501(c)(3) organizations, like DAFs and private foundations, are deductible, but personal fundraisers and unverified crowdfunding pages don’t qualify.
A few tips to get you started:
● Get written acknowledgement for donations over $250
● Large gifts made by cash, credit card, or check are usually deductible
● Keep digital or paper records of all your giving
● If you donate property or stock, note the fair market value on the date of the gift.
Large donors might reduce capital gains taxes by contributing appreciated assets instead of cash. If you’re not sure how giving and taxes fit into your specific situation, make an appointment with a financial advisor. Advisors can clarify itemized deductions and help you come up with a plan to align your giving with your greater financial goals.
Read more in our useful guide to tax-deductible charity donations
Strategies for donating money effectively
So, you’ve decided how much to give to charity – it’s time to decide how you want to manage your donations. There are a few ways you can do this.
A DAF can be an effective strategy for charitable giving if you want to make it super easy. With a DAF, you can manage all your donations in one place. It allows you to contribute to your fund now, but decide later where those funds actually go. You can also support multiple charitable organizations without filling out extra paperwork, and you get a receipt for your tax return, so deductions are a breeze.
If you plan to donate on a regular basis, you can set up automatic monthly donations directly from your bank account. You’ll have to be more diligent about recordkeeping this way, but it’s an easy method once you’ve set it up.
To create a long-term giving plan, you can use the tools available through GoFundMe Giving Funds. Not only can you track all your donations easily, but you’ll get immediate tax deductions for qualified donations.
Donate as often or as little as you want, with any amount you want, and watch your dollars make an impact.
How to donate money effectively
We all want to make an impact with our charitable donations – why else would we donate? In order to help your money go as far as it possibly can, keep the following dos and don’ts in mind.
Do:
● Give directly to the charity of your choice; avoid any middleman that could be taking a cut of your donation.
● Research the charities you want to support before giving. Transparency is key: check out annual reports, measurable results, and basic stories of impact. Use sites such as GoFundMe and Charity Navigator to find tax-exempt organizations that align with your values.
● Check if your company has a program where they’ll match employee donations.
● Protect your personal financial information at all times.
Don’t:
● Give without keeping records of how much you gave, when, and to whom.
● Fall for soliciting or high-pressure scams; giving should be on your terms.
● Donate broken, expired, or dirty items if you’re giving a non-monetary gift.
Setting up a charitable giving plan
If you feel ready to make charitable giving a habit, there are a few ways to go about establishing a plan. First, take into account your budget and schedule, and decide which assets you’re going to donate. Then, set up a system to make maintaining your giving goals easy.
A donor-advised fund is a simple, accessible way to make giving a regular part of your life without any hassle. With GoFundMe Giving Funds, you can:
● Donate cash, appreciated stock, or real estate during the tax year on your own schedule, whenever it fits your budget
● Receive trackable tax deductions for your donation.
● Support verified and trustworthy charitable organizations.
● Manage everything in one account with built-in recordkeeping.
Maintaining your charitable giving habit and donating long-term has positive effects on your community and for those that you’re giving to. But it also benefits you, the giver. Aside from tax deductions, long-term charitable giving has been associated with improved physical and mental health, a greater sense of purpose and fulfillment, and increased overall happiness.
Make a difference and donate today
There are so many reasons to give to charity, and charitable giving doesn’t have to be perfect. There’s no amount that qualifies as “enough”. It just has to be well-intentioned and honest. The “right” amount is the one that feels meaningful, not forced. When your giving reflects what you value most, it stops being an obligation and starts feeling like purpose.
Whether you’re donating cash, stocks, or other assets, or simply volunteering your time, every donation counts. The trick is to start small and stay consistent. Then, you can adjust as your lifestyle changes.
With the right strategy, such as a DAF through GoFundMe, you can easily find verified charitable organizations, track your donations, and get immediate tax benefits for your gifts.
Whether you’re giving $50 or $15,000, what matters is showing up for the causes you believe in, again and again.
Giving money to charity: FAQs
How can I make a donation to a charity?
You can donate via cash, credit card, or check. Or, you can give appreciated stocks, or non-monetary items like food or toys. You can also volunteer your time.
What charity should I donate to?
The charity you should donate to depends on the causes you’re passionate about. Whichever charity you choose, do your research and make sure it’s verified and trustworthy before giving.
What’s the best way to raise money for a charity?
One of the best ways to raise money for a charity is to use a donor-advised fund (DAF), so you can track your donations in one place and make them consistently. You can also use your network to spread the word.
Are charity donations tax-deductible?
Yes, some charity donations are tax-deductible, such as credit card or cash donations, DAFs, and private foundations.
How much of your income should you donate to charity?
There is no “should” – the correct amount depends on what feels right to you. However, the average American aims to donate 2-3% of their annual income to charity.
How do I check if a charity is legitimate?
To check if a charity is legitimate, make sure it’s registered with a government agency or regulatory body. You can also look for annual reports, measurable results, or basic stories of impact.