POLL: Percentage of gross income donated to charity

[HeadedWest2029]

I've seen lots of threads discussing charitable donations and how it relates to mustachianism.  Would love to see how this breaks out statistically

[sol]

Oooh boy, this is going to be ugly.

[wenchsenior]

Yup. These threads always seem to degenerate depressingly.

[boarder42]

my opinion is you can make a much larger impact setting up large endowments for scholarships etc. towards the end of your life that will conitinue to pay out using something similar to a 4% rule on the money allocated for that purpose.  that being said i do make some donations throughout the year to various orgs. -

[tweezers]

We donate close to 10%, but not through tithing (we're not religious). 

[HeadedWest2029]

This is one of my biggest tensions.  I grew up in a religious context so the 10% rule still rattles around in my head pretty strongly.  On the other side, I've become increasingly more frugal and ER is a pretty strong pull, especially since it feels very realistic & inevitable.  I have to admit, I feel a wee bit envious of people who feel no guilt over donating nothing (for logical reasons) and sport a sexy savings rate.  We've gotten to the point where we've trimmed the fat.  Charity is one of the last remaining optional expenses.  Ultimately, I somewhat hedge and tend to give 3-4%

[Sailor Sam]

I donate 10% of my net, which works out to 7% of my gross pay.

I also feel some unhappy tension about my giving levels. I feel like I should bump it up to 10% of gross, but the total sum would be ~11k. Eleven thousand dollars! So much money to just hand over. The self interest cog in my brain kicks in to gear, and I justify keeping to 10% of net.

[Davids]

I donate blood, they claim it saves lives, that is priceless.

[wenchsenior]

I voted 1-3% because that is what we donate to actual technical charities and causes. However, we help support two other family members who would otherwise be relying on federal and state assistance, or charity, so if you count that it is ~10%. Our plan is to keep charitable contributions regular but modest until we are FI, and then scale up if appropriate, and eventually convert our estate to a charitable instrument, should we be so fortunate as to have our money outlast us.

[englishteacheralex]

We currently donate 15% of our gross income, and have a goal of scaling up to around 50% as our net worth and income increase and our expenses decrease. As I post every time I see a thread like this, our end goal is radical generosity and not early retirement. I highly recommend this paradigm shift. For the most part, it removes the tension from personal finance.

[MBot]

Starts at 11% and goes up to 12-13% some months if we make additional gifts when asked for a good cause

[marielle]

I currently volunteer weekly and occasionally make small contributions, but I don't think it accounts for 1%. I only started my career 3 months ago, so this will change as soon as my students loans are paid off in a few more months. Definitely need to do research on organizations to support.

[seattlecyclone]

I max out my employer's gift matching program every year. I plan to switch from monetary donations to more volunteering when I retire. Later in life, in the very likely scenario that the 4% rule leaves me with a boatload of extra money, I'll make some bigger gifts at that time.

[icemodeled]

We are currently giving just under 10%

[Hotstreak]

I give a large amount to charity, something like $50-$100/year.  I chose "nothing" since it matches most closely, what I give is closer to 0% than 1%.  I also volunteer donate blood.

[JAYSLOL]

I voted 1-3% because that is what we donate to actual technical charities and causes. However, we help support two other family members who would otherwise be relying on federal and state assistance, or charity, so if you count that it is ~10%. Our plan is to keep charitable contributions regular but modest until we are FI, and then scale up if appropriate, and eventually convert our estate to a charitable instrument, should we be so fortunate as to have our money outlast us.

Same here, I'm at about 5% to charity, but around another 5% supporting family.  We also would like to increase what we give, but after, or at least closer to FI. 

[Lagom]

At about 2% of gross income for this year. Would love to be at more like 5-10%, but only just finished paying off a mass of consumer debt in June, with another large chunk of student loans to go. I get that it's tough to reconcile FIRE goals with charitable giving sometimes, but at the risk of sounding judgmental, I think anyone who is capable of being on track to FIRE has a moral obligation to use at least some small fraction of their wealth to help the less fortunate, solve global problems, etc. That said, I do get wanting to wait until enough wealth has been accumulated to donate towards a sustainable legacy (e.g. an endowed scholarship).   

[Villanelle]

It's about 4%.  It was a bit higher when we were DINKs.  As SINKs, I donate a lot more of my time, but overall, we donate less, although not significantly less as a percentage.  But since he's by far the primary bread winner and makes much more than I ever did, the % didn't change especially drastically. 

We also have plans to make extremely large donations upon our deaths.  Once we are well in to FIRE, we might begin making those donations gradually over time. 

[College Stash]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

[choppingwood]

About 5% of gross. I set a flat amount for the year, though, and in a lean year this is a stretch amount. I have donated for years, and I look at this as compounding over time. A life saved twenty years ago is a life lived.

Half to all of my estate will go to a charity (Doctors without Borders), but it probably won't be much money, unless I die earlier rather than later.

[everinprogress]

Right now, about 2% of gross- with plans for this percentage to be increased quite a bit once husband is done training, we know where we'll be living long term, and we're not paying $2000 a month in daycare (3-5 year timeline)
Also planning on getting back to donating blood as soon as I qualify again, and donate items no longer needed

[SnackDog]

My employer matches up to $10K, so I figure we would be crazy to donate any less.  Our preferred charity is quite well known to us, is local, and directly benefits people in need in an immediate fashion.

[Rural]

Donate virtually nothing, but my volunteer grant writing brings in more than my gross income every year for a local charity. That's more than I could give (obviously).

[clarkfan1979]

my opinion is you can make a much larger impact setting up large endowments for scholarships etc. towards the end of your life that will conitinue to pay out using something similar to a 4% rule on the money allocated for that purpose.  that being said i do make some donations throughout the year to various orgs. -

+1

[arebelspy]

Question isn't relevant to FIREEs who have no gross income.  Some percent of spending might be interesting to know.

We donate way too little, right now.

Only a year and 1/2 into FIRE, and need to see how sustainable it is.  Already planning a big bump to donations next year (based on donating a large chunk of the new book contract the wife just signed), and we're planning on leaving all of our funds to charity eventually (no inheritances for children, save the case where one has a medical issue and cannot care for themselves, in which case a trust will be set up to care for them, then the surplus will go to charity after they pass.  I'm actively against the idea of "donating" your extra money to your kids instead of much less fortunate people, as I've discussed many other times in other threads).

That doesn't push away the responsibility to help now, so I do want to actively increase our contributions (made donations last week to ACLU, EFF, and Planned Parenthood due to election, for example), but it does help me assuage my guilt a little, that it will all eventually go to charity even if we don't do so as much now.

[pancakes]

I like these threads because I didn't grow up in a financially altruistic family but want to be a generous and community minded person so want to learn from others.

At the moment I give very little. Maybe $500 a year + some donated time to community events.

On one hand I justify my non-giving because we have long term financial goals that are not nearly met but on the other hand we do spend thousands each year indulging ourselves in things like luxury foods and travel so we could certainly find more to give.

I also get torn when it comes to big charities as many seem to have ethical clouds over them or are run by organisations pushing an underlying agenda that I do not want to associate with.

[Metric Mouse]

So little, I don't even calculate it. Most of my charity involves local projects in which I give my time. Not really the same, and since I don't have an income because I'm fired, I can't really apply to the poll either.

[HeadedWest2029]

I have donated for years, and I look at this as compounding over time. A life saved twenty years ago is a life lived

+1 this
I get the appeal of saving for a massive contribution towards the end of life, but I'm skeptical of myself being able to relinquish after a lifetime of frugality. Providing small business loans to the poor in impoverished countries could possibly out compound an index fund. The journey inward for me is how much is my giving (lack thereof) self-interest veiled in strategy for the long game. Not projecting...this is my baggage.

[Turkey Leg]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

Speak for yourself, Mod. The religious people mostly just lurk, for just this reason.

[Metric Mouse]

I have donated for years, and I look at this as compounding over time. A life saved twenty years ago is a life lived

+1 this
I get the appeal of saving for a massive contribution towards the end of life, but I'm skeptical of myself being able to relinquish after a lifetime of frugality. Providing small business loans to the poor in impoverished countries could possibly out compound an index fund. The journey inward for me is how much is my giving (lack thereof) self-interest veiled in strategy for the long game. Not projecting...this is my baggage.

This is a a great idea. Micro loans have been shown to make a huge positive imoact on oeople in developing countries.

[BigHaus89]

I donate 1% of my gross pay to causes/charities threatened by the results of the election. I also donate an hour of my time to tutor math/science every week.

[Paul der Krake]

Practically 0 while in the accumulation phase. I do not have the will or time to figure out who is a worthy recipient.

[FireLane]

I aim to give around 5% of my income to worthy charities. Yes, this would delay my FIRE date, but I feel a moral obligation.

I've been immensely fortunate in my life: to be born in a wealthy developed country, to grow up in a happy and stable home, to have access to a solid education, to have family and friends who love and support me in whatever I do, to earn an income that's way more than I need to live on. Most of us here can say the same.

If I've made good choices in my life, I've also benefited from these privileges that did nothing to earn. The very least I can do is pass on some of this good fortune to others who haven't been so lucky. Even if it means I have to work a few months longer, that's a small price to pay.

[Goldielocks]

Question isn't relevant to FIREEs who have no gross income.  Some percent of spending might be interesting to know.

That is what I thought, too.

 A poll of donations as a % of discretionary spend would be interesting.

e.g., after taxes, housing, insurance, utilities, fuel and ok, car.   What is the ratio of donations to discretionary expenditures?

[Metric Mouse]

Question isn't relevant to FIREEs who have no gross income.  Some percent of spending might be interesting to know.

That is what I thought, too.

 A poll of donations as a % of discretionary spend would be interesting.

e.g., after taxes, housing, insurance, utilities, fuel and ok, car.   What is the ratio of donations to discretionary expenditures?

Shit. Then we would have to track our spending...

[arebelspy]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

Speak for yourself, Mod. The religious people mostly just lurk, for just this reason.

That sentence is clearly the Royal We, as evidenced by the next sentence: "I get it."  Replace "we're" with "you're" if it helps you to understand.

[ohsnap]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

I understand your reluctance.  But be glad there are those of us who are religious.  Yes, we give to a church, which money keeps the lights on & pays other expenses directly related to the church.  But my family and other "religious" people we know give generously of time & money to help foster children, orphans, immigrants (documented and not-so), disaster victims, cancer patients, etc. etc. etc.

[arebelspy]

MOD NOTE: Split tithing discussion here:
http://forum.mrmoneymustache.com/off-topic/tithing-questions/

[ohsnap]

MOD NOTE: Split tithing discussion here:
http://forum.mrmoneymustache.com/off-topic/tithing-questions/

From this thread, what should be moved to the tithing thread?  The only mention of tithing was from one poster who said he gives 10% but it's not a tithe because he's not religious.

People give charitably for different motivations, including religious motivations.  Can those who are motivated by Christian charity participate in this thread?

[arebelspy]

From this thread, what should be moved to the tithing thread?

I already split what needed to be split--there was a whole new question about tithing, someone was curious and hoping Christians would reply.  Did you bother to click the link in the post you quoted?

The only mention of tithing was from one poster who said he gives 10% but it's not a tithe because he's not religious.

No, there was a whole new post with questions about tithing.  That got split off, for discussion.

Can those who are motivated by Christian charity participate in this thread?

Of course.

Try not to take offense when none is given.  Someone had some questions about tithing, so I split it to a separate thread so discussion of that could happen.  Why choose to put a chip on your shoulder, and ask a passive aggressive question like this?  It's not a great look.

[nnls]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

I understand your reluctance.  But be glad there are those of us who are religious.  Yes, we give to a church, which money keeps the lights on & pays other expenses directly related to the church.  But my family and other "religious" people we know give generously of time & money to help foster children, orphans, immigrants (documented and not-so), disaster victims, cancer patients, etc. etc. etc.

You dont have to be religious to help foster children, orphans ad immigrants. My  non religious family all do this infact I have multiple members of my extended family who are foster parents and who volunteer both time and money at many organisations.

Religious people aren't the only ones who give generously

[ohsnap]

From this thread, what should be moved to the tithing thread?

I already split what needed to be split--there was a whole new question about tithing, someone was curious and hoping Christians would reply.  Did you bother to click the link in the post you quoted?

The only mention of tithing was from one poster who said he gives 10% but it's not a tithe because he's not religious.

No, there was a whole new post with questions about tithing.  That got split off, for discussion.

Can those who are motivated by Christian charity participate in this thread?

Of course.

Try not to take offense when none is given.  Someone had some questions about tithing, so I split it to a separate thread so discussion of that could happen.  Why choose to put a chip on your shoulder, and ask a passive aggressive question like this?  It's not a great look.

My apologies.  Your post came directly after mine, so it looked like you wanted stuff headed that direction (anything religious) to go to that thread. My question was not passive aggressive; it was genuine!

[ohsnap]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

I understand your reluctance.  But be glad there are those of us who are religious.  Yes, we give to a church, which money keeps the lights on & pays other expenses directly related to the church.  But my family and other "religious" people we know give generously of time & money to help foster children, orphans, immigrants (documented and not-so), disaster victims, cancer patients, etc. etc. etc.

You dont have to be religious to help foster children, orphans ad immigrants. My  non religious family all do this infact I have multiple members of my extended family who are foster parents and who volunteer both time and money at many organisations.

Religious people aren't the only ones who give generously

Of course not, and I didn't say that.  I was just pointing out that church giving doesn't just build churches; it builds hospitals, schools, food banks, & orphanages, too.  When I suggested "be glad there are those of us who are religious" because of our giving, I should have added that I'm also glad there are those who are NOT religiously motivated who give to similar causes.  Because the world can use our compassion, no matter the motivation.

[arebelspy]

My apologies.  Your post came directly after mine, so it looked like you wanted stuff headed that direction (anything religious) to go to that thread. My question was not passive aggressive; it was genuine!

Got it.  No worries.  :)

[historienne]

my opinion is you can make a much larger impact setting up large endowments for scholarships etc. towards the end of your life that will conitinue to pay out using something similar to a 4% rule on the money allocated for that purpose.  that being said i do make some donations throughout the year to various orgs. -

I take the opposite approach to this - if you are giving to effective charitable organizations, they are going to be creating an "investment return" much greater than the market would.  The most efficient thing to do, then, is to give money away as soon as possible.

[I'm a red panda]

About 7% of our household gross.

I volunteer a lot at a refugee center and they send out a statement to show the financial impact of each volunteer's time. That's equivalent to another 5%, and I volunteer time elsewhere too.  Plus stuff to goodwill and donating blood.

[GetItRight]

I selected "Nothing" but have donated a non trivial amount but still under 1%. There are certain libertarian groups I donate to and other groups or individuals that fight the good fight to restore our freedoms. I will donate more once I have no debt, but the only charities I will donate to are those which are active advocates for liberty until such time as freedom has been restored.  If that happens in my lifetime I will have tens of thousands in tax savings which I will donate a significant part of to non politically motivated charities.

Key factors:
1. Still paying off debt, I will donate more once debt free (likely 10%-15%)
2. Compulsory taxation is theft (namely the income tax), it is taken by force and not charity in any sense of the word

[deborah]

Taxes are good. They give you and your community the bones to flesh out your community - the roads, schools, police, hospitals, laws... that create a decent society. Your community has decided which of these things your taxes will pay for. As you live in a democracy, you have been part of that decision. Your community has also decided as a group how all these things are paid for, and one of them (in your case) is income tax. If you want to change your taxation mix, you can engage with your community to do so.

[Turkey Leg]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

Speak for yourself, Mod. The religious people mostly just lurk, for just this reason.

That sentence is clearly the Royal We, as evidenced by the next sentence: "I get it."  Replace "we're" with "you're" if it helps you to understand.

The royal "we" clearly referred to the members of the MMM community, if it helps you to understand.

[englishteacheralex]

0%. I'm a college student. My post-graduation donations will also be 0% by choice with possible large sums later in life. Like most of my competent peers, I am not religious and thus I will never give to a church like many Americans.

[MOD NOTE: Yeah, we're not much for religion around here.  I get it.  No need to call other people stupid though.]

Speak for yourself, Mod. The religious people mostly just lurk, for just this reason.

That sentence is clearly the Royal We, as evidenced by the next sentence: "I get it."  Replace "we're" with "you're" if it helps you to understand.

The royal "we" clearly referred to the members of the MMM community, if it helps you to understand.

I also think it was meant to be a bit tongue in cheek, since actually there are plenty of religious mustachians. And generally there is mostly plenty of tolerance manifested towards us. Just sometimes...not so much, and then the mods come out and try to keep things civil.