Like sand through the hourglass, 2023 is drifting away before our very eyes. The good news is that it’s not too late to donate to a good cause. According to data collected by Nonprofits Source, a whopping 30% of charitable donations are made during December — and 10% are made in the last three days of the year!
I spent more than a decade working for nonprofit organizations that were heavily dependent on charitable giving, and I promise you, writing that check or inputting your credit card information online (or even just dropping some cash into a donation box) really, really helps. Here’s why you should carve out some money to donate before 2023 is in the rearview mirror.
1. You might get a tax break
This is a very pragmatic reason to make a charitable donation, and it certainly shouldn’t be taken lightly. Paying taxes likely isn’t your favorite thing in the world (despite its importance), and the chance to pay less by lowering your taxable income is certainly appealing. There are a few caveats we should discuss, however.
You’ll only be able to write off a charitable donation on your tax return if you itemize your deductions — if you take the standard deduction, you won’t save anything (besides the feeling of doing good for others). The standard deduction is $13,850 for single tax filers for the 2023 tax year. If your itemized deductions amount to less than this, taking the standard deduction is the better move.
You also need to donate to an eligible tax-exempt organization — the IRS has a great search tool to help you ensure your chosen charity meets the qualifications.
2. Your employer might match your donation
It’s not unheard of for employers to contribute to charitable causes in support of their employees. It might be more likely if you work for a big company that already has a history of giving back to the community — or you might even be able to start a new giving program at your workplace thanks to your own generosity and initiative. Ask your boss if the company might be willing to match the money donated by employees. You might also see higher engagement rates from staff members as a result.
As an example, a former employer of mine offered to match donations to the local chapter of the Boys and Girls Club in that city, and this was an impetus for me to donate money. It feels even better to give back if you know your gift will be multiplied.
3. It could help you finish your holiday gift list
While you might not have the most peaceful holiday if you spend your entire Christmas gift budget for your young children on a charitable donation, making a donation in someone else’s name can be a lovely and thoughtful gesture, especially if accompanied by a nice card.
This is especially true if you know your gift recipient well and know what causes are important to them. I’m a huge animal lover, and I’d be pleased and honored if someone donated to the Humane Society or ASPCA in my name.
4. It’s a kind thing to do and it feels good
The last reason to donate to a cause before the end of the year is because doing something nice for other people can be its own reward. You know that wonderful warm feeling you get from being kind to your fellow humans? That’s not just your imagination — it’s backed by science.
According to the American Psychological Association, there have been several studies that found that behaving generously toward others (such as by donating your time or money to a cause) results in more interactions between the parts of our brains that feel pleasure and process social interactions.
So why not lean into that feeling? You’ve got a little bit of 2023 left, so if you have a charity or nonprofit in mind (may I suggest your favorite small local museum or historical society?) that you support, make a donation. Or use a site like Charity Navigator to find an organization that matches your values and is a legitimate operation. Doing so can save you money on taxes (thereby improving your personal finances) and help you carry that holiday feeling into the new year.
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