How to Decide How Much to Give to Charity
Charitable giving is more than a financial decision—it’s a reflection of your values, priorities, and vision for a better world. Whether you’re supporting local schools, funding humanitarian aid, or responding to an urgent crisis, deciding how much to donate to charity can feel both inspiring and overwhelming.
If you’re like many Americans, you want to give meaningfully but also responsibly. That’s where tools like donor-advised funds (DAFs) come in. A DAF allows you to donate now, receive an immediate tax benefit, and support nonprofits over time. With GoFundMe Giving Funds, you can open your own DAF account and manage all your giving in one place.
So how do you figure out how much to give? Let’s break it down.
Assessing your financial situation
Before deciding how much to donate, take a clear-eyed look at your finances. Start with your income, regular expenses (like rent, groceries, and loans), and savings goals. How much do you have left over each month? That’s your disposable income, and it can help guide your charitable budget.
One useful approach is the 50/30/20 rule:
- 50% of your income goes to essentials
- 30% to discretionary spending
- 20% to saving and giving
From that 20%, you might allocate a portion specifically for donations—whether that’s $50 a month or $5,000 a year. For example, someone earning $100,000 might aim to donate 5%, or $5,000 per year, depending on their financial comfort.
Even a small, consistent amount can make a big impact. And if you use a donor-advised fund, you can plan your giving ahead while potentially growing your donation through tax-free investments.
Determining the overall amount to donate
There’s no one-size-fits-all formula for determining what percentage of your income should go to charity. But there are some common benchmarks that can guide you:
- 1–2% of annual income is typical for many U.S. households.
- 5–10% is often inspired by religious traditions like tithing or by philanthropic movements such as Effective Altruism.
- Others may set a dollar goal each year based on life milestones or causes they’re passionate about.
What’s important is that your giving is intentional—planned as part of your larger financial picture.
And remember: charitable donations can offer significant tax benefits. If you itemize your deductions, your donations may reduce your taxable income. When you contribute to DAFs like GoFundMe Giving Funds, you get that tax deduction the year you donate—even if you choose to grant the funds out over time.
Choosing the right method of giving
There are many ways to give—but not all methods offer the same flexibility or financial benefits.
Here’s how donor-advised funds compare to more traditional methods:
| Giving Method | Tax Deductible? | Can Give Over Time? | Investment Opportunity? | Easy to Track? |
| Cash | ✅ | ❌ | ❌ | ❌ |
| Assets | ✅ | ❌ | ❌ | ❌ |
| DAF | ✅ | ✅ | ✅ (tax-free growth) | ✅ |
DAFs are especially helpful if:
- You want to make a large contribution before year-end for tax purposes.
- You’re not sure yet which charities to support yet.
- You want a single, streamlined place to manage all your donations.
Allocating donations among different nonprofits
Once you know how much to give, the next question is: Where should it go?
Start by reflecting on your personal values. Are you passionate about education, climate change, or racial justice? Do you want to support global relief efforts or give closer to home?
Look for charitable organizations that are transparent about their impact and financials. Many nonprofits share information about how donations are used, who they serve, and the outcomes they achieve. You can also explore public financial disclosures or annual reports to make informed decisions about where your support will go furthest.
These tools help assess transparency, impact, and how funds are used. But remember—big isn’t always better. Local and grassroots organizations often rely on individual donations to stay afloat and make an impact in their communities.
Remember that there’s no one right way to give. Whether you donate to many charities or focus on a few, every contribution makes a difference, so give in a way that’s meaningful to you.
Making charitable giving a personal decision
A “good” donation amount is one that aligns with your values, your finances, and your vision for the world.
Think of giving as a lifelong habit, not a one-time act. By making space for generosity in your financial life—whether through a monthly donation, a year-end contribution, or a fund you build over time—you can help shape the world you want to live in.
Donor-advised funds are powerful tools for turning good intentions into real-world impact. With GoFundMe Giving Funds, you can:
- Set aside money for giving when it’s financially convenient.
- Potentially grow your charitable dollars through tax-free investing.
- Support causes and charities alike—all from one simple dashboard.
Giving can—and should—feel joyful, empowering, and intentional. And when you give with clarity, you give more confidently.
Your giving journey starts here
Deciding how much to give to charity starts with understanding your own financial reality, reflecting on your personal values, and using the tools available to you.
Whether you’re giving $25 or $25,000, what matters most is that your giving is purposeful. And with the right strategy—like using a DAF—you can amplify your impact while maximizing your tax benefits.
This content is for educational purposes only and does not constitute tax, legal, or investment advice. Any examples provided are illustrative. Please consult a qualified tax or financial advisor to determine what’s best for your individual situation.