The indulgent feasts, the shower of gifts, the unending love and laughter evokes gratitude and a feeling to pay this forward. We want to share our joy with everyone, especially those who don’t enjoy the same privilege. So, how do we go about planning our generosity?
To plan our charity contributions, just like when we plan our investments we need to get to know ourselves a little better. We ask ourselves the most important question first:
What cause(s) is closest to my heart?
Once we identify what cause(s) we want to support, we need to shortlist the charity organizations that work for those causes. Platforms such as www.giveindia.org can help us do our homework on charity organizations.
The next step is to make room for it in our budget. In our annual budget, along with our expenses, we allocate a sum that we can donate to charitable organization(s). Whether it is a percentage of our income or a fixed amount, there is no wrong way to decide how much to keep aside.
Charity, while working wonders for a cause we believe in, is extremely beneficial to us as well. From protecting and uplifting our community to activating the reward center of our brain and improving our levels of satisfaction, charity is a sought after ‘feel-good’ activity.
But as the age old saying goes, charity begins at home. So, let’s understand how helping others helps us as well.
Lowering the Tax Burden
Donating to certain relief funds and charitable institutions allows us to claim deductions under Section 80 G of the Income Tax Act. These deductions can be claimed when the donations are made by cheque, draft or cash less than ₹2,000. Donations in kind are not eligible for any deductions. We need to submit the details of the charity (name, PAN, address) along with the receipt stating that amount we contributed along with our Income Tax Returns to claim the deduction.
Improves Money Management Skills
When we decide to make charity a part of our lives, we make space for it in our budget. Along with our expenses and savings, we include the amount we aim to donate in a year. This commitment improves our financial discipline.
Sets a Good Example
Giving back to society is our moral duty. Uplifting the lives of the less fortunate is a rewarding experience. It also puts life into perspective for us and those around us who would see us doing charity can incorporate similar habits in their lives too.
Charity can be considered as an investment in our society’s well-being with the return on our investment being a better, healthier future for everyone. We believe this is an investment that everyone should undertake as part of their life’s portfolio
