The 2% Challenge

In my "new" line of work, I see a lot of different tax returns.  One of the things I look for on a tax return is the amount that someone will deduct as charitable contributions relative to their gross income.  In some cases, people are very generous.  In others, I'm surprised to see how little they give*. 

As I consider my own tax returns, I think of times when my charitable contributions have been low and when they've been higher.  Even when I've tried to be more intentional about my giving, I have not always made contributions at the level that I would like.  So I am setting a goal for myself that I am calling The 2% Challenge.  Or for more dramatic effect...

THE 2% CHALLENGE

My goal for this year, next year, and the foreseeable future is to donate 2% of my gross salary (before taxes) to charitable organizations.  2% is kind of an arbitrary number, but I wanted to pick something that would be ambitious, but achievable.

Like most goals, it is often helpful to have partners to hold each other accountable and to provide encouragement.  I invite anyone to join me by setting a similar goal for themselves!

I understand that the prospect of donating 2% of your gross salary is not feasible for everyone.  Many of you are raising kids, paying off school debt, paying off mortgages, or otherwise may not be able to afford 2%.  But any goal for giving more than you already are is good.  If you would like to set a similar goal (1% of your gross, 2% of your salary after taxes), anything you do is fantastic.  I won't ask for details about your finances, but I can help you figure out a good goal (and talk about tax benefits to giving, too).

And who says giving money is the only way to participate?  You can set a goal of volunteer hours/days and participate that way, too. 

Whether or not you participate, I would love to hear about the organizations that you support and how you got involved with them.  I would like to share these organizations in another blog post in the future and also with anyone who would like to participate in the 2% Challenge if they need suggestions for organizations to give to.

Thanks for reading and for your responses!
Josh


* I also recognize that there are reasons why people may not report all of their charitable giving on their tax returns.  Some people may not get much of a deduction due to the Alternative Minimum Tax.  Others may feel that giving is "tainted" if they get a tax deduction for it.