Throughout life, you would like to contribute to the world in whatever small way you can. Donating to charities is one way to help and make lives better. Being able to help someone is empowering and contributing to society is a social responsibility. Contributing to charity has financial benefits as well.

Tax Benefit 

Tax deductions can be claimed for charitable contributions made to organizations that are specified by the government under Section 80G of the Income Tax Act. In the amount of the donation, deductions are applied to gross income. One of the best ways to save on taxes is to donate to charitable institutions. Besides contributing to society, you also save on taxes.

Do you know how to incorporate charity giving into your financial planning?

• Be Financially Fit

Contributing to society’s improvement is important. Having financial stability is equally important for you to go through this process. Having a plan for your financial goals is crucial to achieving financial stability, as it will determine how much you must start saving toward them. It will enable you to better understand your financial situation and plan your charitable contributions.

• Financial Planning provides Clarity

Writing down your goals makes it easier to develop saving strategies to achieve them. A financial plan gives you clarity and control over your finances, which reduces anxiety about money. You can also choose your donation amount for the charity of your choice.

• Charity as a financial goal

As part of your financial planning, when you determine how much you would like to donate to charity, make that amount a goal. If you do this, you’ll definitely save those funds for charity. Before you start spending money, sweep money into a bucket specifically for charity like you would for other goals.

• Repay to the Society

Contributing financially to society isn’t the only way to give back. You can also make a deed contribution. You can contribute your time to the betterment of the society by taking up a social cause, such as teaching the underprivileged children who cannot afford tuition. Helping unemployed individuals start afresh in a community center. You can help underprivileged people by providing free advice or guidance if you are in a position to do so.

The ones who receive your contributions are grateful, regardless of the way in which you choose to give back to society. Positively affecting the lives of others and reinforcing our personal values is an honour. As you do a service, include your kids, so that they appreciate what they have and will be humble. This is how they will learn the importance of generosity and giving back.