Some time ago Finn and I decided that instead of making donations randomly (like buying the pens at the grocery checkout, or chucking a couple of bucks to someone who had a tin at the traffic lights), that we would be more intentional in our giving.
In order to do this, we decided to settle on an amount each year that we were comfortable with adding into our budget as a donation and then treat it in the same way we spend all our other money. With a limit and with thought as to whether or not that is the best place for that money to go (just like the whole ‘am I getting value for my money with this purchase?” that I always ask myself).
Until then, donations had kind of been slipping through the cracks I guess, because you’re never going to beat yourself up about giving money to charity but like everything I do in life, I’d prefer it to be sustainable, impactful and driven by passion rather than just on a whim.
So, we settled on 2%. That way it is scaled depending on what we earn – this is helpful when you’re a business owner because your income can fluctuate a lot – and we decide at the beginning of the financial year what our limit will be for the year ahead.
The best thing about this is it gives me real confidence and power to say no to a charity because I have a predetermined amount I am planning to give and it also gives me real joy to spend time researching and thinking about the charities that I really want to support. This year, the bulk of our allocation supported the CEO Cookoff, raising awareness and much needed funds for homelessness (something Finn has supported for many years now), and several other smaller donations went to causes close to our hearts including CARE Australia.
I’m very proud to be a CAREtax Ambassador this year, so if you’re still thinking about donating and want to get that tax deduction secured before the end of the financial year, head on over to their website. They’ve got a nifty little calculator that will tell you how much you can expect to get back in your tax return based on your level of income and the donation you wish to make.
A donation of $69 can educate a girl for a year and costs someone earning between $37,001 and $80,000 just $46.58 because they’ll receive $22.42 back in tax.
What I love about this the most is that educating a girl provides the single highest return on investment in the developing world! By helping one woman out of poverty, she will bring four others with her. Pretty amazing right?