How much.

 

Did you know that many faiths provide a guideline for its followers as to how much to give? Some religions prescribes 2.5 percent of personal wealth, while others put it at 10 percent of income or annual produce. 

How much to donate is however a personal choice. While you may or may not follow any rules, it is always a good idea to donate, according to your capacity and without stretching your finances.

Charity begins at home 

Are you able to pay your monthly bills and save as well? Are you running debt of various kinds and using credit cards to bridge the gap? 

If you are high on debt, focus on getting your financial house in order.

On an average, one should be able to save at least 10-20 percent of income for retirement and other financial goals. Your contribution towards charity should come after investing towards the above mentioned goals.

If possible, streamline your discretionary spends – be it on dine outs or leisure travel – to save for charity. 

Figure out the cause you are passionate or deeply care about. Is it to feed the hungry or educate children? Subsequently, enlist organisations that are serving the cause.

Charitable goals

Figure out the cause you are passionate or deeply care about. Is it to feed the hungry or educate children? Subsequently, enlist organisations that are serving the cause.

Do a thorough research on them as regards their track record and expenses. An organisation with high expenses has a poor allocation rate. For instance, an NGO with an expense that totals 15 percent of disbursement, will only allocate 85 percent of your donated money towards the cause. Rest will go towards paying for their office expenses and administration.

You can find all this on the organisations’ website. 

Pare down the list

Rifle or a shot-gun approach? Perhaps it might make sense to pick the rifle and shortlist two or three causes and donate all to them. It can accelerate progress towards the cause.

Sometimes your cause might be better served by dealing directly with the parties concerned. Perhaps your maid or driver might want finances to fund their children’s education. The advantage of this approach is that you ensure the affected party gets the full money. 

Tax angle

Under Sec 80G of the Income Tax Act, donations made to specified relief funds and charitable institutions can be deducted

But keep at it give continuously, not just once it has to be every year. Our forefathers were able to give without asking and they did it silently normally every year. Now a days people must be reminded to give. Can you believe jobs are created and people are employed with tasks just to go find donors. 

Join organisation's which do charity which continuously help out without expecting anything in return. Believe me it is very rewarding just to help another who is less fortunate at that time. Time and place are not constant roles may change. As far as possible give don't wait to accumulate to give. Give from what you have your life becomes richer. You can see the magic happening.