We’ve all been asked at a checkout, “Would you like to round up a purchase to the nearest dollar to support a charity?” In the moment, it can feel hard to make a decision. How do you evaluate where your money is going? How can you know if your giving is truly making a difference? This guide will help you budget for charitable donations, research trustworthy organizations, and keep track of your contributions.
How to Budget for Charitable Donations
It may seem counterintuitive, but charitable giving works best when it’s part of your budget. Budgeting ensures your generosity remains realistic and sustainable. If you don’t know where to start, consider giving 1% of your monthly income to charity. For example, if you earn $5,000 a month, that’s $50. If that seems doable, you can start to increase your giving budget over time.
The way you donate is also a choice you must make. Do you want to donate money to an organization on a monthly basis or as a one-time donation? If you choose to give to the same organization monthly, you can streamline the process by setting up a recurring payment. You may also choose to give a one-time donation during a seasonal campaign or for emergency relief efforts.
Action Step: Calculate how much of your monthly income you can feasibly put toward charitable contributions.
Do Your Research Before You Donate
Before you start the hard task of figuring out which organizations to support, you should first figure out your main reasons for supporting a cause.
- What is your motivation to give?
- What are your values?
- What would you like your giving to accomplish?
- Would you prefer to support local, national, or international organizations?
After figuring out what is most important to you, conduct research to find out which charities align with your values and goals.
Use reputable resources to evaluate different charitable organizations.
If you are struggling to find an organization to support, consider asking your friends and families which charities they are passionate about. This may give you a great starting point.
Doing research on different organizations is important. Some scammers pretend to be representatives of charities asking for donations in the form of gift cards or wire transfers. Real charitable organizations will not ask for those forms of donation payments. If someone is urging you to act quickly to donate, take a step back to evaluate the situation. It may be a scam.
Action Step: Identify your top three values. Use that as a filter to find out which charities align most with your principles.
Keep Your Records
Keeping track of your financial giving is very important. When tax season rolls around, it will be helpful to have all your charitable donation receipts filed away in one place. You should also monitor your statements to make sure that the correct amount was taken out of your account.
Action Step: If you don’t have all of your financial giving receipts filed in one place, take the time to do so now to avoid stress down the road.
West Bancorporation Foundation
The West Bancorporation Foundation, Inc. (the “Foundation”) is the charitable foundation affiliate of West Bancorporation, Inc. West Bancorporation is the parent of West Bank which is actively involved in the greater Des Moines, Iowa City/Coralville, and Minnesota areas where we do business and where our employees are leaders in helping our communities and citizens grow and prosper.
Our giving priority is to support programs whose primary purpose is to benefit low- and moderate- income individuals. The three main categories of the Foundation’s contributions focus on human service, education, and arts and culture. In 2024, the Foundation awarded over $267,000 in grants. You can find information about the Foundation’s grant application here.
Note: West Bank does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
