What % of your income to charity?

[iris lily]

I looked at our taxes over the past 2 years.

This year we gave 5% of our AGI to charitable organizations.

Last year is was 7% of AGI.

I don't know why I use AGI instead of gross income, maybe to make charitable giving look better. Is there any justification for using AGI, hmmmmm?

Comments?

[minority_finance_mo]

I'm still in college and I just started working a full time job. Right now I give ~1% of my gross salary to charity. If I'm getting creative and using AGI instead of gross, I'm giving ~2.2%... If I get REALLY creative and use net (of taxes, 401(k), etc.), I'm giving ~3.5% to charity. Honestly, I don't know why you'd use anything but gross though - it's the most standard and transparent. Any way you slice it, I'm giving $28/month to one charity and a few bucks a here and there into the charity box we keep at home.

[Scandium]

wow, that sounds like a lot. Of the top of my head we gave 0.25% or so, I think. Giving away thousands never crossed my mind. But I also don't believe charities will accomplish much. The "forces of evil" are much too strong so what's the point.. Spend $10k and years to save an injured mountain gorilla, the next day 12 are killed by poachers. yeah why bother? Do people really believe they can affect change?

[Chuck]

I gave nothing. We are thinking about getting involved with a couple of local groups and donating our time though.

[mathlete]

wow, that sounds like a lot. Of the top of my head we gave 0.25% or so, I think. Giving away thousands never crossed my mind. But I also don't believe charities will accomplish much. The "forces of evil" are much too strong so what's the point.. Spend $10k and years to save an injured mountain gorilla, the next day 12 are killed by poachers. yeah why bother? Do people really believe they can affect change?

My girlfriend used to work at a soup kitchen feeding the homeless. They also try to help out the chronically homeless. Like they'll put good candidates up in a halfway house and find them work to do at the charity. Stuff like that.

In the decade plus that the soup kitchen has been opened, they've had one major success story. One guy who lived on the streets and now works regularly with them and lives on his own. Everyone else they've tried to help has fallen back into homelessness because of societal pressure or drug use or mental health or something else.

Despite the fact that they have just the one big success story among the thousands of homeless that they work with, I still think the charity is worth it for a number of reasons.

1.) You can't really quantify how important the charity was to helping the one guy get on his feet and live a nice life.
2.) Homeless regulars come and go and it's very possible that some of the faces that disappear moved on and are making life work somewhere else. And the soup kitchen was a part of that.
3.) Even if most of the chronically homeless are going to be on the streets the rest of their lives, not having to worry about where lunch is going to come from M-F has to make life marginally better for a whole lot of people.

So you should definitely do due diligence when donating to a charity, but I definitely think it is worth it.

[mathlete]

In response to the thread I think it is something like 2-3% of gross income.

[TheAnonOne]

A very small amount, definitely under 1k a year and it's all from nephews asking for some school project.

So... something like 0.25%

[bermudasq]

About 13% of gross every year, give or take. 

First 10% because I've found a good church and want to support it's various efforts in our city and worldwide.  Next 3% because I believe the other charities would use the money in a more meaningful way than I would.  E.g., I could buy unnecessary luxuries or I could, though a charity, provide medical care, food, education, etc. to orphans.

Some context given the forum anonymity (not something I would 'brag' about in real life):  I make about $160k as an attorney, so I'm meeting my retirement goals and have money left over.  If I made a lot less, I'd still pay the 10%, but the 3% may be reduced.  The 10% comes from spiritual convictions (e.g. 1 Timothy 6:17-19; 1 John 3:17-18). 

[Davids]

I donate blood, too bad that cannot be deducted.

[iris lily]

... Honestly, I don't know why you'd use anything but gross though - it's the most standard and transparent. ...

I guess I use AGI because with gross income, so much of it goes to taxes. I am trying to define "discretionary" money I've got so as to compare how much of that goes to charity.

You are right that using AGI is kind of a weak argument especially since it includes deductions (which include those charitable gifts!. haha.)

Probably I should tally up gross income, subtract all income-based taxes or all taxes total, and go from there.

It totals several thousand dollars annually. I give to animal charities like The Elephant Sanctuary and Bulldog Rescue (where I'm on the board and I know where the money goes.) I also like historic buildings.

I think it's quaint that people use as an excuse for not giving the idea that the charity doesn't make a difference. Well, I say find ones that DO make a difference. It's not as though those elephants are capable of feeding themselves if I don't give money for that purpose. The human charities--ok. Don't give them money. I'll support you at that.  :)

[MandyM]

I'm not sure of my percentage, but it is probably 1-2%. I give a significant amount of my time though. At minimum I volunteer half of my Saturdays, plus several hours during the week. Once FI, I plan to increase the monetary giving while continuing my time commitment.

It always makes me sad to hear that people don't give to charity because they don't believe the money will be used well or because it won't make a difference. Its just an excuse. If you want to give, find something you believe in. I guarantee there is a non-profit out there that is putting in blood, sweat, and tears to the cause.

[ender]

10% gross (ok it's more than that but I"m way too lazy to do the math).

Support a lot of local, international, and regional programs.

Amazing what a small amount of money a month will do to transform someone's life.

[NICE!]

~11-12% gross and I never feel like it is enough. Also, it is highly likely that all of our estate will be given away to charity when we die.

[badger1988]

... Honestly, I don't know why you'd use anything but gross though - it's the most standard and transparent. ...

I guess I use AGI because with gross income, so much of it goes to taxes. I am trying to define "discretionary" money I've got so as to compare how much of that goes to charity.

You are right that using AGI is kind of a weak argument especially since it includes deductions (which include those charitable gifts!. haha.)

Probably I should tally up gross income, subtract all income-based taxes or all taxes total, and go from there.

I think you're confusing AGI, taxable income, and net income after taxes.

Last year was 15% of our gross income, spread around to 8 different charities. Honestly, I think there are a lot of good reasons to not donate any money, but a lack of good charities isn't one of them. If you can't find a charity that is making any meaningful impact, you either aren't looking hard enough or are way to cynical.

[2lazy2retire]

Very little to nothing - but I happily pay my taxes, both the same to me

[act0fgod]

Very little to nothing - but I happily pay my taxes, both the same to me

Do you really pay your taxes happily?  I pay my taxes somewhat begrudgingly.

I never give money to those who come around collecting, my co-workers all think I'm cheap.  I recently had a conversation with my officemate after he donated $5 when someone came around asking for money.  He admitted he only donates small amounts when people come around asking for it so people think he's generous.

Last year we donated around 8% of our income.  Like others have said we also donate our time...to be honest the donation of time is more for selfish reasons as I feel good when I feel like I've done something helpful.

[2lazy2retire]

Very little to nothing - but I happily pay my taxes, both the same to me

Do you really pay your taxes happily?  I pay my taxes somewhat begrudgingly.

I never give money to those who come around collecting, my co-workers all think I'm cheap.  I recently had a conversation with my officemate after he donated $5 when someone came around asking for money.  He admitted he only donates small amounts when people come around asking for it so people think he's generous.

Last year we donated around 8% of our income.  Like others have said we also donate our time...to be honest the donation of time is more for selfish reasons as I feel good when I feel like I've done something helpful.

Maybe "happily" is too strong a word - but I try not to complain

[canadian bacon]

We give around 10% depending on the year.  One of the great thing about having money is that when we see a need, my wife and I can help. 

As a kid, I always did a flat 10% to the church but now my wife and I enjoy keeping our eyes open for people or  organizations that need help

[cdttmm]

~10% of my gross income per year. Sometimes a little more, sometimes a little less. It almost all goes to the same place each year. I donate a fair amount of time to the same organization. I have no heirs, so the same organization will inherit my estate when I kick to bucket.