Planning My Annual Giving
Whats the right amount of monetary charitable giving?
This is a pretty touchy subject, not many people talk opening about their annual giving unless they like to brag about giving large donations.
I'll be honest, I have probably been on the small side with my annual giving for the 4 yrs that I have been working. I usually donate some amount to 1-2 charities in IBM's annual Employee Charitable Contribution Campaign and then haphazardly make 1-2 additional donations during the year. One of the main charities I donate to is the Junvenile Diabetes Research Foundation (JDRF).
The one thing I haven't done is much planning on what I want to give annually. For the past 4 yrs my goal has been just to increase my annual giving. It has been unpredictable, and more about the mood I am in when I make a donation then following a plan about how much I would like to give.
I need a rule of thumb at least for the next couple of years that will help me give a set amount that I feel reflects the contributions I want to continue to make to charities. In addition this rule of thumb should not hinder me from reaching my financial goals so I can ultimately donate generous amounts of time helping charities in my early retirement ;-).
I think the best thing I have heard is mms rule of thumb annual giving equal to 1 day of salary. That isn't all that much, but I think it sets a good pace that I can build on as I get closer to my financial goals. However for every $100,000 salary someone makes, we are only talking about a measly $273/yr. If over ones entire life they only averaged 1 day of salary per year in annual giving, we are only talking about .27% of what they earned. I sure hope to do better than that.
I am going to mail a donation for the remaining amount I want to give to the JDRF today (just so happens I got another donation request form them yesterday). This will bring me up to the one day's salary for this year in terms of annual giving.
Now back to focusing on reaching my financial goals so I can focus my time in early retirement to worthy causes!
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