How Much Giving Is Enough? Experts Outline a Budget Plan For Charitable Donations
Hurricane Sandy probably has you wondering how much money is enough to give to charity. The budget experts over at Real Simple recently pondered this same question and came up with a good guide for how to earmark your income.
Experts say that, if you're able to, 2 to 3 percent of your income is a good ballpark for cash donations to charitable organizations. So if you earn $50,000 per year, that‘s $1,000 to $1,500 annually or $83 to $125 monthly — depending on the frequency that you prefer to make donations.
From there, it’s recommended that you split your donations into regular organizations you wish to support, and emergency organizations that need extra, immediate support. Start by setting aside 80% of your giving budget to your regular causes, and sock away 20% allotted to emergency donation funds. If you put that 20% aside all year, you can give a good chunk of money to a good cause when they need it.