You should give away more money.
By: Sarah Deluca
Tags: Giving, Income Inequality, Philanthropy, Justice, Social Change

What would it mean for you to give away 10% of your income to social change organizations, or to provide direct services to poor people in your community?

The concept of “tithing” or “giving alms” isn’t a new one. Many of us grew up knowing of it, religiously-based or not, but we often get caught up in a scarcity mode of “getting what’s ours” and feeling the need to save everything for our future selves or future generations. For some, giving to the church is important, but I like the broader definition of tithing to social change organizations.

In the grand scheme of things, giving back $10 of every $100 you make doesn’t seem like that big of a deal. You can think of it in time too: for every 2 weeks of full-time work, you’re giving one day to causes you care about.

People on average are giving away 3.7% of their income to charity. And excluding those households at the tippy-top, folks with the least are often the ones giving the most, according to this chart:

Truly Pitiful for those of us in the middle.

How much money did you make last year?

If you’re a software engineer in Boston, the median salary is $118,000 according to Built In Boston. Compare that to a Community Organizer for a non-profit in Minnesota, where you’re making on average about $38,000.

You may also have to factor in salary from a partner, or any income you’ve made off of investments — stocks, bonds, high-interest savings accounts, etc. Things get more complicated if you have other money coming in, like income from rental properties, or monetary support from family members. Add up what you can, and estimate where you need to.

Generally speaking, a household income of over $150,000 is considered the top 10% of income earners in the US, so if — like me — you fit that category, we DEFINITELY need to be giving our fair share. (A more detailed calculator by age percentile is here, if you’re into that sorta thing)

A note for those not working for a living: If you are retired, have access to inherited wealth, or are otherwise living off of investments, I’ll tackle that one in another article! Your cash flow may look different, but there’s also ways for you to keep giving generously.

Now is a great time of year to assess what your total number is, as many of us are getting W2’s and other tax forms hitting the mailbox this month, and then just take 10% of that.

For the software engineer example above, not counting other income, 10% is $11,800. For the Organizer it’s $3,800. Because math.

If you live in an expensive area (like where high paying jobs tend to exist), your expenses are presumably higher too. Childcare, transportation costs, supporting other family members — these things add up! Not to mention saving for retirement, a home, or other big life expenses. I get it.

But also, shouldn’t we be investing in the betterment of other people’s kids and futures too? Or protecting people’s basic rights to live and thrive? With income inequality at an all-time high, and government supported safety nets struggling to meet the needs of people, there’s an even greater need for non-profits to step in.

Again, this is especially true if you are at a high income bracket.

Think of giving 10% as a starting place.

You need to figure out what is best for you and your family. What is a meaningful amount for you to give back? What would be a stretch?

If giving 10% is a bit too much of a stretch for you this year, perhaps you can push into a level of healthy discomfort and personal growth. Certainly, we can do a lot better than the average of 3.7%. And the earlier in your career that you start with giving away 10%, the easier it will be to continue giving that percentage away as your salary grows.

OK, I’ve picked a number — now what?

Once you’ve set that goal number, you can start making your plans of where to give.

I recommend committing to to a few realms or categories, thinking about people and places you are personally connected to, and movements you want to see grow and thrive. There are a million issues to choose from, and you get to decide what is most important to you. Fund systemic change, as I’ve wrote about before.

If you’re stuck, or are totally overwhelmed with the money conversation, know you are not alone! Everyone’s got their own weirdness and discomfort around money. If you want to be better, or just take steps to give some of it away, I’m here for you! Set up a time to chat with me, or just drop me an email. I’d love to hear from you.