Thanks to technology, the world has become a global village, and many processes, especially payments, have become more accessible. Imagine how cool it is to make payments on your smartphone from the comfort of your home.
Today, the various payment methods have made it easier to carry out many financial activities, including donating money to charity. However, a large percentage of Americans are oblivious to some payment methods; and it has crippled their giving capacity.
A recent statistic shows that many individuals in the United States want to donate money to nonprofits, but they have concerns that make giving challenging. One of the challenges potential donors face is how to donate money to charity.
It’s no news that most charity organizations extend helping hands to countries in remote areas of the world. And they go as far as places without an internet connection. So, you think to yourself, how do I make donations to such a nonprofit organization?
If you’ve always asked yourself that question, stick with me. You’ll find multiple answers in this article. However, a significant number of donors find tracking and organizing their donations an arduous task. Besides, there are donation rules for nonprofit organizations, and you wouldn’t want to defy them.
If you’re in that category, it’d be best if you took your time to understand how to finance your donations and the impact of your giving. Hence, the following are tips to help you donate better:
Automate Your Donation
Many people know the amount they want to donate per month or annum, so it’s advisable to have a set amount in mind if you don’t. Having a mindset of the amount alone isn’t enough. You’d want to pre-schedule your giving as well.
This tip helps you become a better giver. Like you plan for rent or mortgage, planning a payment makes it easier to give what you’ve decided. Interestingly, automatic donations are straightforward to set.
You can set up automatic donations via your credit card or bank account. In some cases, some employers can help you combine it with your payroll deductions.
Speak with a Financial Planner
It’s one thing to have the mindset to donate, and it’s another to know how much you can afford. Knowing what you can afford can be difficult sometimes; that’s why you’d want to consult a financial planner. You want to consider your earnings and what you have left after bills to make a favorable decision.
Many potential donors are in the doubt pool. Should I give? Or hold on to the money for personal use? This is because many people view small amounts as insignificant. You shouldn’t have such a perspective. Imagine a dollar donation from one million Americans – that’s $1,000,000. Making a donation – no matter how small – goes a long way.
So, always remember that nothing is too small to give. If you feel you can’t decide on an amount that would be comfortable for you to give, you should see your financial advisor help you identify and achieve your charitable goals. They can as well help you figure out some charitable tax-saving strategies you may not know.
Understand Your Favorite Charities
Many donors have occasionally questioned the trustworthiness of the nonprofits they support. And this is because most of the donors don’t know what the charities they donate to do. It’s advisable to study the mission statements and set charities’ goals before picking.
There are several charitable organizations today, and they all have different goals. Many individuals donate to particular charities because they understand what they do and wish to support the initiative’s progress.
If you wish to know what a charitable organization does or how your donations are being used, a little research is all you require. You can ask the charity directly about how they use gifts if you don’t find the answers you seek in the emails or newsletters you get.
This tip is relevant to boosting your confidence in what you support. The more confidence you have in any nonprofit, the higher your zeal to keep supporting the cause.
Teach Your Family How to Give
Putting your family in a giving way is a double-win for your favorite charities. It broadens the impact of your family on a noble cause and also increases the amount you give. If you have kids already; consider setting up a donation jar for the entire family. Spare change and some other little amounts can go into it at any time of the month.
It’s advisable to lead by example. When your kids see your contributions to the donation jar, they’d be encouraged to put some change into it as well. It’d be best if you explained the impact of giving to your family. Gradually, you’re teaching your family how to donate money to charity.
With an in-depth understanding of how you can better make donations, here are efficient ways to donate money to charity:
- Use of Checkbook
One of the common forms of philanthropy is donating to a charity by writing a check. It’s relatively straightforward. And many people prefer this payment option for security reasons. A significant number of people find it difficult to input their credit card details online, especially when it involves a substantial amount of money.
- Donate Online
As the tech world evolves, innovations spring up. Prominent tech innovation is the online payment platform. And this technology has made it relatively easy for anyone to make donations to any charity they like.
Online donations have also encouraged young people to give, as it fits their digital lifestyle. To that end, virtually all nonprofits have developed online payment platforms to aid swift donations. If you don’t have any charitable organization in mind, you can check online for the best charities to donate to in 2021.
- Donate Via a Donor-Advised Fund
Donor-advised funds, also known as FDAs, are charitable donation accounts offered by a sponsoring organization. These accounts are designed as simple and less expensive alternatives to setting up a private foundation.
This type of charitable giving has become quite popular and has grown exponentially over the years. The modus operandi is straightforward. You put in your money, let the sponsoring firm manage it, and they make the donation to the nonprofit of your choice.
- Use Cryptocurrency
Donations with cryptocurrency happen to be the latest trend, and several individual and charitable organizations alike have welcomed the idea. Using digital assets, like Bitcoin and Ethereum, has made it easier for many to make swift and complete donations to their favorite charitable organizations.
Donating to charity is an effective way to relieve yourself of some extra funds and do something that will support a worthy cause. To donate the intelligent way, you’d want to follow the tips on how to donate money to the charity mentioned above or visit Food for Life Global to help feed hungry children.