How Much Money Should I Give Away?

The internet has made charitable giving a lot more visible and easy to do. All sorts of organizations that do valuable work vie for our attention and financial support. Which ones should we give to, and how much?

Actually, a lot of people don’t give away any money at all: 34% of Americans in 2021. Some of these people simply had no money to give away–they were too poor or out of work, and their living expenses were too high to have anything left over for others. But I suspect that a significant number of people have the means to give away some of their money but choose not to.

For those who do give away some of their money, it may be surprising who they are. For instance, more Millennials give to charity than any other age group: 84%. It may also come as a surprise that those households with income between $40,000 and $50,000 give away a significantly higher percentage of their income than those with incomes between $100,000 and a million: 4% versus 2.5%. I think those who struggle to get by are more aware of the legitimate needs of their neighbors, and so they are more willing to give money to worthy programs. Those in the middle-class are perhaps more removed from the daily needs of others and are more focused on accumulation for themselves and their offspring.

How much should I give away to worthy charities? And to which ones? That depends on our values.

If we believe that the long-term well-being of future generations is just as important as our own survival, then we might be inclined to give substantial amounts to environmental organizations. If we believe that everyone has a right to enough food and basic medical care, then we may give substantially to organizations that provide those services. If we believe everyone needs shelter and warm clothes, then we will likely support efforts to reduce poverty and homelessness. If we believe everyone needs a decent education and employment opportunities, then we will invest in tutoring, scholarships, and job training. If we believe everyone needs to be treated justly and equally, then we may give money to free legal services. If we believe that everyone has a wide range of needs including meaning, purpose, friendship, guidance, forgiveness, and spiritual growth, then we may give generously to the ministries of a faith community we belong to or believe in.

Since there is no end to human need, there is no end to how much we may feel we ought to give away. But we can’t give away everything without then also being in need. So we must decide on some kind of a balance. Here are two possible alternatives:

Live as simply as possible and give away all that is left.

Give away a certain percentage of one’s income, and seek to increase that percentage each year.

The first approach is very hard to do–emotionally as well as practically. Does living as simply as possible mean living in a tent? Not owning a car? Never enjoying entertainment or a cultural experience that has an entry fee? If we believe that all humans have equal value, then it makes ethical sense to live as simply as possible in order to help as many others as possible simply live. It also makes sense ecologically since it is a much more sustainable lifestyle for everyone on the planet. But this approach is so difficult, so hard to define, and potentially leaves out so much of the aesthetics of life, that most do not choose this way.

The second approach is much more straightforward and manageable. We may begin with our current giving and then seek to continue expanding it. It can be combined with the first approach because as we seek to keep expanding our charitable giving, we are also looking for ways we can live more simply and sustainably. Eventually we will probably come to a point where giving away more is no longer possible without sacrificing some things that are too valuable for us to lose. No one can say ahead of time what that point is. Each of us must find it.

Our money is our money–but in another sense, it is not; it is humanity’s. Martin Luther wrote: “If our goods are not available to the community, they are stolen goods.” We are all in this together.