A few years back, my husband and I decided to plan a trip to Southeast Asia with our kids. When speaking with a friend, she recalled her favorite memory from her trip to Vietnam was visiting an orphanage. My initial thought was, what a wonderful experience that would be for our kids. Beyond the experience of the culture and travel is the less tangible and most important gift: the gift of perspective.
We started planning this leg of the trip. Our local insurance agent extraordinaire is from Vietnam and often visits orphanages. She connected us to a Catholic church, flights to Vihn, Vietnam, and a GoFundMe. We raised over $2,000, and my husband and I matched those funds dollar for dollar, so the total was over $4,000. To put that in perspective, the average orphan in Vietnam lives on $2/month.
Of course, this was significant for the Catholic charity and will go a long way in caring for the amazing kiddos. But, I’ll be honest, the impact was far more beneficial for us.
When creating a spending plan, you may focus on your income and expenses. An often overlooked category is giving.
This may sound a little woo woo, but hear me out. I firmly believe, “You will receive what you put out into the universe.”
And if that doesn’t resonate with you, remember, the joy of giving is a reward in itself. Donating to charity can also have financial benefits. A charitable donation is a gift of money or goods to a tax-exempt organization that can reduce your taxable income. To claim a deduction for charitable contributions on your taxes, you must have donated to an IRS-recognized charity and received nothing in return for your gift.
- Charitable contributions or donations can help taxpayers lower their taxable income via a tax deduction.
- To claim a tax-deductible donation, you must itemize on your taxes.
- The amount of charitable donations you can deduct may range from 20% to 60% of your AGI.
Lastly, if you’re not in a position to give monetarily, you can still make a difference. You can give the gift of time to an organization that matters to you—ideally both. Whether it’s donating blood, volunteering at a local food bank, or simply lending a helping hand to a neighbor in need, every act of kindness counts. And it’s not just good for the soul, it can also have positive financial implications.
I speak from experience, I just wrapped up a 12-week volunteer program with Women’s Money Matters. This incredible organization works to empower underserved women through financial education. When a woman is empowered and in control of her money, it creates a ripple effect around her, changing and improving the lives of her loved ones.
If you haven’t seen my article in Denver Voyage Magazine, I discuss giving back in more depth.
I’d love to know – what’s your favorite way to give? Share your experiences and inspire others to join the giving movement.
