Setting Up a “Giving” Budget

November 7, 2012 | By | Comments (1)

Checkbook balance

In the wake of natural disasters like Hurricane Sandy, it’s important to remember to factor in charitable donations into your budget. Many financial experts recommend setting aside 2 to 3 percent of your income for charity, if you’re able to.

Once you have that budget set up, it’s time to divide that money into regular contributions and emergency contributions. The split here should be 80 percent to regular contributions (organizations you want to support on a monthly or yearly basis) and 20 percent to emergency contributions. That way you won’t break your budget donating money after a natural disaster. And if you make it through the year without having to use that emergency donation fund, you can give a little extra to your favorite charity around the holidays.

Get more tips for fitting charitable giving into your budget.