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How to fit charitable giving into your budget this holiday season


With high prices continuing to squeeze budgets, 47% of Americans say their charitable giving will be affected by inflation as the holidays approach, a recent WalletHub survey found

“It certainly isn’t surprising that all of the economic factors that have been going on are impacting not only families’ baseline budgets, but that it’s trickling over into their charitable giving as well,” certified financial planner and founder of Live and Give Financial Sara Young tells CNBC Make It.

WalletHub’s finding comes amidst a larger drop in individual charitable giving: Last year, Americans gave the smallest percentage of their disposable income to charity in nearly three decades, according to data from Giving USA.

Charitable donations tend to pick up speed at the end of the year, with donors encouraged by Giving Tuesday, the Tuesday after Thanksgiving following the shopping sprees of Black Friday and Cyber Monday. 

But this year, figuring out how you can donate may be difficult. Young recommends first determining if donating money at all is feasible for you.

“No. 1 is to make sure that you’re meeting all of your own basic needs,” she says. “You shouldn’t be dipping into emergency funds to support these measures. The intent is beautiful, but you don’t want to be putting yourself in a bad position to be on the other side of needing the receiving aspect of a gift in the future.”

As we enter giving season, here are three tips for those looking to donate to charity without breaking the bank. 

1. Don’t discount the value of starting small

While you might think a big monetary donation has the most impact on a charity, Young says every little thing helps. 

Adding an extra food item or a pair of mittens to your regular shopping purchases at the grocery store or on Amazon allows you to donate a few dollars without having to carve out a big chunk of your budget, Young says. 

“Even just one extra item of canned goods is going to make an impact on the family that’s looking for a little extra support this season,” she says.

2. Donate your time

While money is often the focus of charitable giving, donating your time is another effective way to help your favorite organization. 

“If you have an extra hour or two, there are so many organizations, particularly this time of year, that are looking for manpower and time,” says Young. “If that feels comfortable for you and fits in with your schedule and life circumstances, then that can be extremely powerful without needing to shake your financial foundations.”

Signing up for a soup kitchen shift allows you to “still feel good, give back and not have to break your bank,” says Brandon Opre, CFP and founder of TrustTree Financial. 

“Time is something that is also at a premium, but might be more available than actual money out of your wallet,” he adds.

3. Donate non-cash items

Another way to still participate in giving season without spending is to donate non-cash items like clothing, furniture or electronics to a local charity.

Meet your giving goals by doing some early spring cleaning, which will help you take stock of your belongings and give away items you no longer use.

Charitable giving can be an important part of your financial plan

Opre encourages people to consider charitable giving as part of their overall annual budget, “whether that’s 1%, 3% or 10%.”

If you want to be better prepared to donate next holiday season, consider setting aside a portion of your 2024 spending for charitable giving when you sit down to plan your yearly budget this January.

Making any kind of donation during the holiday season often has a massive impact for an individual or family in need, adds Young. 

“Those of us that have the extra cash to spare, whether it’s $1 or $100, or whatever that looks like given all of the economic forces that are happening right now, every little bit helps and can make a bigger difference than you can really put into words,” she says.

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