Budgeting for Charity
As you consider how much to give, the first thing to remember is that everyone’s financial situation is personal. For most people, donations don’t exceed 2 percent of their total annual income, but decide for yourself whether this works for you. Those who tithe often donate 10 percent or more, but this is best planned and saved up for during the year.
When determining your budget, go with an amount that you can handle without dipping into your emergency fund or retirement savings. If your giving budget is smaller than you’d like, never fear. There are plenty of ways to get creative and give in non-cash ways—time, services or other in-kind gifts (more on that here).