Giving is good for you—but it needs a budget

Money and Mindset | July 2025

Research suggests giving back is healthy and may even relieve stress and anxiety. But how can you budget for it, and how do you decide where to give?

The highlights

  • Giving back can not only feel good, but it can improve your physical and mental health.Disclosure 1
  • There are strategies that can help make financial giving part of your monthly budget.
  • You can have even more impact with your gift by researching options for employer matching or donating time and services along with money.

Studies show that giving back can be beneficial to your emotional and physical health—potentially helping your overall health and well-being.Disclosure 1 Giving back can give you a sense of purpose and community, allowing you to direct your focus to others rather than yourself.

When it comes to financial giving, it can be difficult to prioritize it if you have competing financial obligations. So how can you give, save, and live within your budget? Here are some tips.

Align your giving with your values.

There is no shortage of worthy recipients out there, so finding the best places to give can take some work. To get started, make a list of values, causes, or societal issues that are most meaningful to you. What sparks a fire in you? What types of community impact bring you joy?

Giving locally or globally, to individuals or organizations

With a narrowed-down list of prominent issues or causes, consider where you are—and where you could contribute the most help. Is it important for you to give locally, in your immediate community? Or do your intentions take you to other parts of the world? Or both?

Traditionally, donors mostly give to nonprofit organizations certified by the Internal Revenue Service (IRS). This is because donations to these organizations are typically tax-deductible, although primarily for big donors.

You can also give to individuals who need funds more urgently or are doing work for causes you value. Supporting neighbors in need or donating time to a cause you care about may feel just as rewarding as giving to an organization. Just be aware that helping a neighbor or family member in need may not tax-deductible.

Giving by the numbers in 2023

67%

of charitable giving came from individuals

$557B

was given by Americans

1.8M

the number of recognized 501(c) organizationsDisclosure 2

Giving on a budget: Think in percentages

As with your other spending, giving needs a plan. It may be best to think of giving a percentage of your budget rather than a set dollar amount.

While donating some of your income may be a great goal, it’s critical to not sacrifice savings or debt payments. Instead, go through your expenses, find what you can do without, and allocate that expense to your favorite cause.

Making it easier to give

No matter how much you decide to give, there are a few ways to ensure the process of giving is streamlined.

Automatic giving

Many organizations can set you up with recurring donations. Instead of giving one lump sum, they can spread your donation throughout the entire year, with 12 monthly payments.

“I give to certain organizations every month, and I automate it. It’s factored into my budget already, and it doesn’t seem like huge amounts, but it does add up over the year. For me, giving throughout the year is a good strategy, explains Bright Dickson, Truist’s resident expert in positive psychology, on the podcast Money and Mindset With Bright and Brian.

Matching gifts

Some employers have matching giving programs. You make a donation, and they match some or all of your gift amount. It’s a great way to get more out of your giving.

Cashless giving

There are many ways to give without spending any money at all. Many organizations will accept in-kind donations, which are non-cash contributions such as goods, services, time, or expertise. Reach out to a local institution and ask for ways to volunteer your time or talent.

“If you’re really good at something, you can use those talents that aren’t costing you anything right now and share them with others,” explains Dickson.

Podcast episode: Listen to ”How giving back feels good” from Money and Mindset With Bright and Brian.

In the end, the benefits of giving aren’t dependent on the amount you give, but on your intention. Start small. Be thoughtful. And make a plan to ensure you’re giving in a way that’s smart and fulfilling. It may just make you happier, too.

Next steps

  • Identify what causes matter to you, and research organizations—local, national, or both—that align with your priorities.
  • Determine how much of your monthly budget could go to a cause you care about, perhaps using the 50/30/20 rule.
  • Look for ways to make your money go further. Does your employer match contributions? Could you also donate time or goods to one of your chosen organizations?