Exploring Financial Literacy 48 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. You may also want to budget for charitable contributions. A charitable contribution is a donation of money or gifts to a nonprofit organization or private foundation. Making charitable contributions is often an act of social responsibility. Social responsibility is behaving with sensitivity to social, environmental, and economic issues. When deciding how much to give, look at your income and expenses to see what you can afford to contribute. Donations you make to a qualified charity in the form of both money and property are often tax deductible when you file your income taxes. You will need to keep proof of your donations to take advantage of this. Be responsible in your giving. Research organizations before you make a donation. This is especially a good idea if you are donating online. Make sure contributions go to the cause, not in the pockets of those who run the charity. Check Your Understanding How does a charitable contribution demonstrate social responsibility? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ While you are young, you may not have a lot of money to give. A donation of your time can be just as valuable to a charity as a monetary contribution. Community groups, animal shelters, elderly neighbors, food pantries, and other organizations often need volunteers. Make the most of those opportunities. Some may lead to a career later in life. F F Y I Internet Research Charities 1. Visit the Better Business Bureau website and perform an Internet search for charitable contributions. 2. Select three charities to which you might consider contributing. Record their names in the table. 3. Research how much of each dollar goes to the actual charity recipients or activities and how much goes to administrative expenses. Record this information in the table. Charity Percent to Charity Percent to Administration Categorizing Expenses Expenses are categorized as either fixed or variable. A fixed expense stays the same each month, such as the amount paid for a monthly bus pass or a cell-phone data package. Record savings as a fixed expense to help you get into the routine of saving money every month. Depending on your personal budget, you might also choose to categorize charitable contributions as a fixed expense.