Your family may be among those who are taking their charitable giving budgets more seriously this year, given uncertainty surrounding interest rates, potential new legislation, and possible stock market swings.
At the same time, you also know that our community’s needs continue to rise. As 2025 gets into full swing, your favorite charities will be relying on additional resources and support from philanthropic sources.
Against this backdrop, a budget has benefits!
Here are a few steps to consider as you build a 2025 budget for charitable donations that can help you continue to support your favorite causes and remain fiscally cautious.
Review all your charitable donations from the last three years and compile totals for each organization. This can be an easy exercise if you use a donor-advised fund at Kitsap Community Foundation because the data can typically be pulled directly from the KCF’s donor portal or requested from the KCF team.
Carefully review the list of organizations you’ve supported over the last three years. Regardless of your donation levels, which charities are the most important to you? Are you serving on the board of directors of any of these organizations? Do you regularly volunteer at any of them? Is there a personal connection?
Are there any organizations on your list that you supported primarily because the organization was raising money for a capital campaign, or because you were helping out a friend who is involved with that organization? If you anticipate household budget constraints in 2025, these may be organizations to possibly put on hold and then revisit supporting again in future years.
Add up your total giving over the last three years and then divide it by three to get your average. Is that number doable this year? If not, reduce it to a level that fits within your financial situation to arrive at your tentative 2025 giving budget. Or, if you expect your income and assets to increase this year, consider taking your charitable giving budget up a notch. And always remember that there are tax advantages to giving highly-appreciated publicly-traded stock to your fund at Kitsap Community Foundation.
Consider whether to keep certain organizations at historic levels of giving, such as those you’re personally involved with. Or on the flip side, you may decide to temporarily reduce your level of giving to organizations for which you are providing other types of support, including volunteering or board service.
Review your list to see if there are any organizations you’ve supported that you’d like to learn more about. The team at Kitsap Community Foundation is extremely knowledgeable about charities in our region and would be happy to provide information on how a particular organization spends its money and how it measures impact. Visit www.kitsapgreatgive.org to learn more about the many organizations serving our region and make a plan to support the causes you love on Tuesday, March 11, 2025!
Finally, do the best you can to set targets for the amount of support you’d like to provide to each organization—and perhaps even set targets for the timing of your gifts. You can change these targets at any time, of course. The point here is that the planning and budgeting process is a great way to create more intentionality around your giving. Intentional giving is not only more rewarding for you, but it is also likely to increase your level of engagement with the recipient charities and enhance your understanding of how dollars are being deployed to meet the mission. This, in turn, helps your favorite organizations get better at carrying out their programs and serving those who rely on their work.
We look forward to working with you throughout the year!
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