From Automatic Donations to Acts of Kindness: Building a Balanced Giving Plan
I was very blessed with my prior employer because the company was very mindful to encourage donations to local charities, and to support that they partnered with United Way for payroll deductions. Having my donations for my two favorite charities (Paws With A Cause and Forgotten Harvest) be automated ensured my giving was helping out and it allowed me to stay consistent throughout the year. These smaller amounts each payroll check helped build into a larger annual amount which had more impact. This helped me balance structure financially while allowing some spontaneity with where the donations would be allocated. Knowing that I took care of these donations to help others really brought peace of mind to me because I have been blessed for many years with a healthy family, consistent employment through my chosen career field and an overall strong financial standing.
Having your donation on autopilot ensured my generosity was consistent even when life got busy, I would not forget to send something in because it was happening every two weeks. It certainly reduced decision fatigue on where I might want to send money throughout the year - instead I remembered it was automated and handled. I hope it also helped the nonprofits plan better because there was predictable funding coming to them based on my annual donation pledge. Aligning giving to charities close to my heart consistently also gave me a sense of purpose to my planning because the dollars were pulled out during the payroll process compared to me needing to remember every month. It also got easier over time to adjust each year by a few dollars because I was so used to the payroll process. I think if I had managed to set aside funds each month or year, I might not have gotten to the large annual amounts I was able to achieve.
Giving in this manner may seem disconnected with the charities, but I try to always remind myself emotionally that generosity matters. I also stay in touch with how the charities are helping my community by monitoring their social media and websites. As well as ensuring I’m staying connected and spontaneous I find ways throughout the year to build joy in giving - most often with food drives. One of my favorites is the National Association of Letter Carriers Stamp Out Hunger Food Drive every second Saturday in May. I think it’s important we find what works best for each of us - automated or spontaneous. Both works well for me as it gives me a balanced plan each year.
You might ask, how can you build a balanced giving plan? Here are three actionable steps I recommend you can take immediately to assess and create your own balanced giving plan:
Automate Your Core Causes — Choose one or two organizations that align with your values and set up recurring donations. Many online banks will allow you to “mail” checks directly to organizations as part of their bill processing, so make it one of your monthly or quarterly tasks to either send funds or visit their website to make your online donations. It is my recommendation that you donate with cash or debit cards, do not go into debt for charity unless you have the funds available. If you are really motivated, perhaps talk with your payroll or HR department to develop an automated process within your organization for recurring donations – many companies like to get employee involvement for not only volunteering services but supporting donations to worthy causes.
Budget for Spontaneity — Set aside a small fund for spontaneous generosity (e.g., local drives, in memory of donations due to someone's passing or causes or events you are passionate about). Every month you might want to have a “generosity sinking fund” created for you when something comes up which allows you to easily support others in need. Having those funds set aside in a sinking fund for that dedicated purpose allows you to accumulate the anticipated costs without taking on debt or facing financial strain when the moment arises.
Reflect Regularly — At least once a year, revisit your giving to ensure it still aligns with your heart and financial goals. I suggest ahead of the annual Giving Tuesday which takes place the Tuesday after Thanksgiving in the United States. It is touted as a "global generosity movement unleashing the power of people and organizations to transform their communities and the world.” Reflections are important because they foster learning and personal growth, improve your decision-making, and boost mental and emotional well-being. By pausing to think about your gift giving you can gain a better understanding of the “why” and importance of your donations and make more informed choices in the future.
Gratitude in action whether big or small is a personal choice. I find that by choosing charities close to my heart, it’s easier for me to set aside the funds to support their missions. But it is important you do your own research on your charities and that their vision blends well with your head and heart but also understand how they utilize your funds both for the cause but also minimizing their administrative fees.
By remembering the true gift of giving we are all strengthening our gratitude and connections with our hearts and in our communities. Pull your family into the planning spirit, especially young adults and children. Your entire household can always use a reminder about the importance of giving, and perhaps even enjoy the process of selecting, researching and then making the donation to causes you all agreed upon. Generosity isn’t about the amount — it’s about awareness. Every act of giving, no matter how small, shapes the world we share.
What specific charity or cause has meaning for you and your family? Or what gift giving are you most proud of and why? Share your thoughts on my social @lordfinancialcoaching
