Yes, You Can Give Meaningfully on a Budget

People who know me know I love Rutgers where I went to college. After I graduated, I was still a big fan of their football and basketball teams and wanted them to keep winning. So when I started working in my mid-20s, I started giving to the university foundation earmarked for student athletes. I was passionate about wanting to give back with the two cents that I had at the time.

Giving back is something I still feel passionate about today. And it's not just about coming up with a donation on Giving Tuesday or during the holidays (although both can be good motivation). Nor is it something only wealthy people do. To me, charitable giving can be part of your financial life whatever the time of year or no matter how much money you have. And with a little strategic thinking, you can enhance your donation, even if you're giving on a budget. Here are five ideas to consider.

When I first started giving to Rutgers, I would write a check or sometimes used my credit card. Then when I did my tax return, it asked if I made any donations. I realized I needed to keep receipts because there could be a tax benefit for me.

Then, I learned about a donor advised fund and set one up. A donor-advised fund (DAF) is a simple and tax-smart solution for charitable giving. Once you set up a DAF account in your name or with other individuals, your irrevocable contributions to the account are eligible for current-year tax deductions. You may then invest contributions for potential growth that's tax-free, and you have the flexibility to recommend grants to qualified public charities of your choice immediately or over time. A DAF account also offers succession plan options to help you give beyond your lifetime and continue your charitable legacy.

Because my employer had a match for charitable gifts, it was also a way for me to give more and get a tax break. It felt awesome to double my gift and was pretty cool to have a Patrick Means charitable fund.

It doesn't take a lot of money to set up a donor advised fund. Some financial companies require a minimum opening contribution, but others don't. You can make ongoing contributions to the fund as it suits your financial circumstances. You can even help make your contributions more effective by giving appreciated stock, which could give you the added advantage of avoiding potential capital gains taxes. Plus, your contributions to the donor advised fund are tax deductible in the year you make them, not the year the donations are distributed.

Once your account is open and funded, you can direct your donations to any eligible charity whenever you like. The recordkeeping is taken care of for you; you have easy online access, and you'll have a complete history of your giving. An extra bonus is that you can invest the money in the account, potentially increasing your ability to give over time.

Make sure you have the money you need for yourself. Then think realistically about your budget. How much can you afford to give? When's the best time to give it? Maybe an automatic monthly donation would work for you. Or maybe you could earmark a portion of a yearly bonus.

Want to increase your donation? See if your company has a matching gift program. For instance, with my employer, Charles Schwab Foundation will match an employee's donation to eligible nonprofits dollar for dollar up to a limit. It's a great way to make your dollars go further—and it feels awesome to double the money you give.

It's generally recommended to do your research before making a donation. You can check an organization's nonprofit status, reputation, efficiency, and impact at an independent online rating service such as charitynavigator.org or charitywatch.org.

There are so many causes and organizations in need of support. You can't give to all of them, so consider choosing something that has special meaning to you. Maybe it's your university or high school, or a pet shelter where you adopted your dog or cat, or a faith-based organization. When I decided to support Rutgers student athletes, I wasn't trying to be a big-time booster. I was just trying to give back to something that had been meaningful to me while I was in school.

You might also look to your own community. Making a financial contribution that not only benefits a cause you believe in but also has a local impact could help give your donation extra meaning to you.

Giving back isn't always about money. Many organizations need volunteers. Civic organizations, community support organizations, the arts—they all can use a variety of skills and expertise from cleaning up after a disaster to welcoming people into a service or event to offering specialized help with things like communications or technology.

You might also consider serving on a nonprofit organization's board. And if you serve on a board as well as donate, some companies with matching gift programs will increase your match even more.

Are you running a race for a special cause? Helping to organize a fundraiser? Don't keep your passion a secret. Tell your friends and family what you're doing and why. Chances are they'll want to help you out. And include your kids, too. Help them learn at an early age the importance of giving back. It would make my heart melt if my son took something out of his piggy bank to give to a special cause. So don't be shy; consider being an inspiration.

I'm fortunate, as many of us are, to have had other people give me opportunities. I want to do the same for others. For me it's not just about the dollars, it's about the feeling that I'm having an impact. When I gave to Rutgers student athletes, I saw that impact on the field and in the classroom. Seeing an outcome like that can help give added meaning to your donation, no matter how much you're able to give.