Last week we had Giving Tuesday. According to its official website of www.givingtuesday.org, Giving Tuesday was created in 2012 within the 92nd Street Y and its Belfer Center for Innovation & Social Impact in NYC. It now is an independent nonprofit inspiring millions to give, collaborate and celebrate generosity.
According to Giving USA, our national charitable giving in 2023 was estimated to be over $557B. That was also up 1.9 percent from the prior year, but not more than the inflation adjusted high of 2021. For more information on the subject, one can access the annual report of 350 plus pages at www.givingusa.org.
I often say there is no end to the good one can do with money. Under our present taxation, both federal and state governments recognize the fact that oftentimes, private organizations and individuals can accomplish more than the government itself. This is why we can receive a deduction from our taxed incomes if our total itemized deductions exceed $14,600 each in 2024. So, if your non-federal taxes, excess healthcare costs, and charitable contributions are higher than that amount, your taxable income will be reduced dollar for dollar up to 60 percent in most cases.
This applies to all nonprofits with a section 501(c)(3) designation by the IRS. We have the freedom to decide which charities shall receive our donations. Some Americans do not favor this because the list includes everything from religious institutions to schools and universities to social or cultural groups which we personally do not favor. But that is another example of our freedoms.
For example, consider the horrible devastation of Hurricane Helene in the Southeast. Your tax dollars have had some effect through FEMA. However, you can give additionally to the American Red Cross (the major contractor for services with FEMA) or to one of the other boots-on-the-ground contractors such as The Salvation Army, a state member of the Disaster Relief arm of the Southern Baptist Convention, Samaritans Purse, and others.
I, and the local volunteers I know from Missouri, and other Midwestern states have gone to Georgia or the Carolinas under the administration of these groups. In general, we pay all our own travel expenses and time off, but receive free meals, a place to put our cots or mattresses, and shower and laundry facilities while we cut up downed trees and help clean up the mess. I hope to be able to spend another week on this before the organized efforts end. As in 2005 with Hurricane Katrina, the total recovery will take years, if not decades.
Some readers gladly cite the shortcomings of our generally capitalistic economy. But I would point out that unless people are able to work, save, invest, and inherit resources for themselves under our system, we would never be able to band together to help others. Whether we are generous is up to us.
Winston Churchill said, “The inherent vice of capitalism is the unequal sharing of blessings. The inherent virtue of Socialism is the equal sharing of miseries”. I personally like to work to create value for others and therefore earn money, and then choose to give for the benefit of others who cannot help themselves.
(Past performance is no guarantee of future results. The advice is general in nature and not intended for specific situations)