Millennial Money: Give back without busting your budget

Millennials as a generation believe in supporting causes more than individual organizations, are likely to be influenced by peer networks when it comes to giving and want to give back in terms of money, time and leadership, according to the Millennial Impact Report, a decade-long study of millennial philanthropic behavior.

Here’s how to prioritize causes you care about and be strategic about giving, regardless of your income.

Begin by writing down the issues you care about most, says Andrea Pactor, interim director of the Women’s Philanthropy Institute at Indiana University.

The act of making the list gives you clarity about what’s important to you and how to direct your spending or your time.

“The next step is to do a real assessment of what you’re giving now,” Pactor says. “Is what I’m doing now aligned with my values?”

If you find yourself contributing to causes only when a friend or family member asks for help or clicking yes to Facebook pledge requests, having a giving plan can help you focus on the issues you really care about.

Financial experts say there’s no rule of thumb about how much of your income you should dedicate to charitable giving.

Religious communities that practice tithing recommend giving 10% of your income, but unless you adhere to that, there’s no “right” amount, says Christine Centeno, a certified financial planner at Simplicity Wealth Management near Richmond, Virginia.

“It all goes back to what you can afford,” she says. “Charitable gifting is important, but you have to make sure you are saving for retirement and building a cash reserve.” Centeno notes that volunteering your time or expertise can be an alternative to cash donations.

When your income changes, revisit your giving plan to see if your priorities have changed and how much you can afford to donate, Pactor says.

Both Pactor and Centeno recommend looking at websites like Charity Navigator and GuideStar, which allow you to research nonprofits, see their tax filings and identify organizations that make the most impact on your chosen cause.

Since charity begins at home, your local Community Foundation website is also a good place to start. Many have a list of vetted organizations in your community you can help.