{"id":52344,"date":"2021-10-15T19:20:00","date_gmt":"2021-10-15T23:20:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=52344"},"modified":"2021-10-26T09:42:38","modified_gmt":"2021-10-26T13:42:38","slug":"contributing-to-charity","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/contributing-to-charity\/","title":{"rendered":"How to Start Contributing to Charity"},"content":{"rendered":"\n<p>Do you want to start contributing to charities? What charity causes do you want to support?<\/p>\n\n\n\n<p>While it certainly feels good to spend your wealth on new gadgets and luxuries, the real <a href=\"https:\/\/www.shortform.com\/blog\/why-does-money-have-value\/\">value of money<\/a> comes from how you use it to help others. Consider donating a portion of your income to a cause you care about. Not only will you <a href=\"https:\/\/www.shortform.com\/blog\/ways-to-feel-better-about-yourself\/\">feel good about yourself<\/a>, but you\u2019ll also actually feel wealthier and your pursuit of money will feel more meaningful.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s explore how you can share your good fortune with others and contribute to a better world.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Choosing Your Recipient<\/strong><\/h2>\n\n\n\n<p>The first step in starting to contribute to charity is to research and identify charities that are meaningful to you. Once you\u2019ve chosen your cause, your recipient should be able to contact your bank to set up an automatic payment plan on your behalf (with your permission) so that you can make regular monthly contributions.&nbsp;<\/p>\n\n\n\n<p>Bach urges you to keep track of your donations\u2014many charitable donations are tax-deductible so you may save taxes on your contributions (if you donate $100, you can claim back the tax you\u2019ve paid for that $100 on your tax return).<strong> You can check with the <\/strong><a href=\"http:\/\/www.irs.gov\"><strong>IRS<\/strong><\/a> and request #526 (<em>Charitable Contributions<\/em>) to confirm whether your chosen charity is tax-exempt.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Should Charitable Donations Benefit From Tax Deductions?<\/strong><br><br><a href=\"https:\/\/www.wsj.com\/articles\/SB10001424127887324469304578143351470610998\">Some politicians are calling for an end to tax deductions on charitable contributions<\/a>. They argue that these deductions:<br><br>Only benefit wealthy donors (they can already afford to give without the tax break)<br><br>Generally don\u2019t increase donor contributions (compassion, not financial <a href=\"https:\/\/www.shortform.com\/blog\/what-is-incentive-meaning-and-definition-economics\/\">incentive<\/a>, leads to giving)<br><br>Definitely harms the economy (the government subsidizes charities every time they offer a rebate).<br><br>In addition, unless you <em>itemize your tax return<\/em> and provide proof of your charitable donations, you won\u2019t get the rebate. This additional paperwork means that millions of Americans already contribute without applying for a rebate, and strengthens the argument that these tax deductions should come to an end.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Invest in Charitable Funds<\/strong><\/h3>\n\n\n\n<p>If you have money to contribute but aren\u2019t able to decide on a charity, Bach suggests you consider investing in a charitable fund\u2014this type of fund allows you to set aside money to donate even if you haven\u2019t decided on a specific cause. This way, you receive instant tax deductions based on your annual IRS limit and the money you invest continues to grow tax-free until you decide to contribute it. However, <strong>once you\u2019ve invested the money, you can\u2019t get it back<\/strong>\u2014the money has to stay in the fund until you send it to a charitable cause.<\/p>\n\n\n\n<p>(Shortform note: If you\u2019ve already decided on a charity and would like to invest your contribution, receive tax deductions, <em>and earn an income<\/em> on your contribution before you send it to your cause, consider investing in a <a href=\"https:\/\/www.investopedia.com\/terms\/c\/charitableremaindertrust.asp\">Charitable Remainder Trust<\/a>. This type of trust pays you a share of the profits for a set period of time, and then contributes the remaining amount to your designated charity.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Remember That Your Time Is Just as Valuable as Your Money<\/strong><\/h3>\n\n\n\n<p>If you can\u2019t yet afford to donate your money, consider donating your time instead\u2014this will make you feel just as good as donating your money would. Bach suggests that you research opportunities to volunteer your time to a cause that you care about.<\/p>\n\n\n\n<p>(Shortform note: Volunteering your time may <strong>create more value<\/strong> than your monetary donations. This is because volunteering allows you to contribute your knowledge and skills to help non-profit organizations effectively deliver their services. <a href=\"https:\/\/govolunteerafrica.org\/3-reasons-why-do-organizations-need-volunteers\/\">Your time has a direct impact on their operation costs<\/a>\u2014without your help, they would need to use donor contributions to pay people to do the <a href=\"https:\/\/www.shortform.com\/blog\/fulfilling-work\/\">valuable work<\/a> you\u2019re doing.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you want to start contributing to charities? What charity causes do you want to support? While it certainly feels good to spend your wealth on new gadgets and luxuries, the real value of money comes from how you use it to help others. Consider donating a portion of your income to a cause you care about. Not only will you feel good about yourself, but you\u2019ll also actually feel wealthier and your pursuit of money will feel more meaningful.&nbsp; Let\u2019s explore how you can share your good fortune with others and contribute to a better world.<\/p>\n","protected":false},"author":7,"featured_media":42966,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[20,31,24],"tags":[525],"class_list":["post-52344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethics","category-money","category-society","tag-the-automatic-millionaire","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Start Contributing to Charity - Shortform Books<\/title>\n<meta name=\"description\" content=\"Do you want to start contributing to charity? 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