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DQMission

charitable donations - the 10% rule

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DQMission

I noticed in another thread that some people use the rule of donating 10% of their income to charity. It seems I am falling short by a large amount. My taxable income last financial year was $20k (with a part carer pension and carer allowance on top of that). $2k (or more if you include my non-taxable income) just feels like so much money when I dont even have that in savings. I definitely have a small amount of disposable income each pay cycle though. I'd like to do something positive with some of my money though. Am I horrible for not wanting to part with 2k though? I feel greedy and selfish knowing how much more generous others are being. Please be kind on your responses as I am very run down and really unwell and feeling a bit sensitive. 

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BadCat

Nope.  Not horrible.  Give what you're comfortable with as far as I'm concerned. 

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JRA

you are definitely NOT horrible.  

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kerilyntaryn

I find if I give a little to various charities through the year,  is much easier than a huge chunk all at once.  Just really research the ones you are giving too, also

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Ozquoll

Ten per cent? That seems high for most people TBH. I remember back in my single, pre-kid days getting an ominously worded letter from the ATO about my deductions for charitable contributions being above the normal range. IIRC, my income that year was $58k and my donations were just under $1200, so 2% of my pre-tax income. 

Nowadays I have a household income of not much higher than $58k, to look after two adults and 7yo DS with autism. I won't be making more than very token charitable donations until my little family unit is in a better financial position. 

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Aughra

I used to donate 10% of my income when I was younger and didn't have responsibilities.  It's a huge amount to give when you have a mortgage and kids.  At the moment I try to volunteer and give more time than money.

I think everyone should give what they can afford when it comes to both time and money.  Don't feel pressured by what others are doing.

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rob^2

For some people, their 10% might be calculated on their after-tax income.


And if you give to tax-deductible charities you have the added bonus of being able to claim it on your tax-return (the charity should state that the donation is tax-deductible and provide you with a receipt - note, offertory giving to a church is NOT tax-deductible).  If you donate in June, and do your tax-return in July you will recoup the tax benefits quickly. 
Donating to a charity you can reap the benefits from may feel more achievable too - ie donating to a building fund, where you will get to use the building.  Or donating to medical research for a condition that a family member has.

There is also the option of giving your time to a charity instead of giving money.

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DQMission

Thanks for the feedback. I want to build charitable spending into my budget now so that it can grow when my income grows (hopefully!) and also to teach the same to my kids. I will have to work out the financial sweet spot for a regular %.

Time to do some research.

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born.a.girl

Good god no, there's no way we gave that during years that were tight.

It's probably not a bad guidline once you've got an income/lifestyle whereby a significant amount of your expenditure is very discretionary.

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~LemonMyrtle~
Posted (edited)

10%?? Who does that?? When some people are paying 50% of their income just on rent or a mortgage, I doubt they could afford An extra  10% just on donations.  I have heard that 10% of your income should go to your church, if you’re part of some particularly strict religions. But I wouldn’t say it’s common.

we don’t donate to charities much at all, it doesn’t occur to us. Neither of our parents did regular donations to anything. So it’s just not something we do. Recently I decided to sponsor a child through smith family. And we do one-offs like for the bushfire appeals and good Friday appeal, But that’s nowhere near 10% of our income. 

Edited by ~LemonMyrtle~
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got my tinsel on

The only 10% I've heard of has to do with tithing to churches.

Donate what you can, when you can, if you can and don't beat yourself up if you can't or have other priorities.

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seayork2002

10% no we don't 

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Soontobegran

It is ridiculous for anyone or any organisation to 'suggest' any amount when it comes to donations.

Giving 10% of an income that is providing for 2 people is quite different to giving 10% and providing for 7 people.

I give what I can and when I can.

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BornToLove

10% seems high. The only times have heard giving so much is with churches (tithing) or teaching children with basic budgeting (1/3 each for spending, saving and giving). 
 

I don’t think 10% is realistic for most. Thinking back to when our income was limited, there was no way we could even afford to donate 0.5% of our income. Even now, it would be a strain for us to give that much. We do give our time and contribute in other ways. 

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Meepy
Posted (edited)

10% is unrealistic for most.  Instead of money that I can't afford to give, I volunteer for community organisations. Please don't feel inadequate or bad for not donating money.  Sometimes time is more valuable than money.

Edited by Meepy
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Murderino

I think people who give 10% have a VERY high income with all their basics covered or no housing costs etc.

I support two kids and myself last night I started gathering information for my tax return. There is no way I could afford to donate $6000 a year right now.

My single, child free younger sister would have to donate at least $10000 per year and there is no way she could do that.

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kimasa

EB has a small but vocal group of people who seem very out of touch with financial reality of most people. If we're ever in doubt, we can just have another art buying thread, or even just another groceries thread.

No it's not typical to donate 10% of your income. 

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foxbread

10% is not all equal either, if giving to tax deductible causes and claiming it. At my current income, each dollar I give is worth 37c or whatever. When I was mostly living off carer payment, the dollars weren't worth as much (but I felt the absence of each more keenly). Do what you can. 

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Zippypeaks

I read the other thread and thought TEN PERCENT?!! THAT'S SO MUCH MONEY!! Regardless of household income.

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got my tinsel on
23 minutes ago, kimasa said:

EB has a small but vocal group of people who seem very out of touch with financial reality of most people. If we're ever in doubt, we can just have another art buying thread, or even just another groceries thread.

No it's not typical to donate 10% of your income. 

That art buying thread was a ripper!  I still can't believe how much was spent by one poster in it - it was more than I was earning (gross)!

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SplashingRainbows

I can assure you OP I see a lot of information about a lot of people’s financial affairs. Very few people give 10% of their income. 
 

and those who do, that 10% often doesn’t ‘hurt’ as much as even 1% might for a low income person because their income is sufficient to cover the basics. 

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Kiwi Bicycle

Interesting that both Robert Kiyosaki ( Rich Dad, Poor Dad) and other financial gurus in the late 90s to early 2000s all said to build in 10 % charity into your financial portfolio, mainly a kind of woo woo, what goes around, comes around sort of mystical universe type thing.

I give what I can, when I can. I like putting loose change into buckets mostly. 

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DQMission

The people I know Who do donate 10% are absolutely not financially out of touch.

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Silverstreak

I once knew a family that was tithed over 25 % of their income by a church, now that was a lot. 10 % is still considerable though.

I believe in giving what you can, when you can and how you can. Can be via money, or donating your time, but don't leave yourself short in the process.

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