How to Start a Giving Fund
Set up an account., Decide what you can afford., Make your “gifts” informal., Keep records.
Step-by-Step Guide
-
Step 1: Set up an account.
Taking the first step toward creating a giving fund is as simple as opening a bank account.
You can stay with your own bank where you already do business and just open a separate account.
If you believe you will be make regular donations or payments from this account, you may want to make a checking account for flexibility.
Otherwise, you can set up a savings account just to hold the money.You don’t actually even need a bank account.
If you are working with small amounts of money, you can just set it aside in a safe place.
The key is to separate the money that you are able to hold in your giving fund from your own finances. -
Step 2: Decide what you can afford.
With a small, personal giving fund, you do not have to bind yourself to any formal rules or donation amounts.
However, it will help if you can get yourself into a habit of making regular donations to your fund.
For example, it would help if you plan to set aside something like $10 each week or even at the end of each month.The amount of the money is not as important as establishing a regular routine.
You should make a point of doing it consistently at the same time. , The purpose of a personal giving fund is to allow yourself the opportunity to help people whenever the need might arise.
You might want to drop a larger than normal donation in a tip jar at the coffee shop or send a card to a friend who you know is in temporary need of help., If you are creating a giving fund for your own private donations, you probably do not want to concern yourself with any major record-keeping.
Even so, you should at least keep a notebook or some type of ledger to record the money you put into the fund and the donations that you make from it.
Depending on the amount of the contributions that you make, you may choose to claim the money as charitable tax deductions.If you want to claim deductions for donations that you make, you will probably need to get receipts, depending on the amounts involved.
You may want to read Claim a Church Deduction for Federal Taxes or Itemize Charitable Donations for some more information. -
Step 3: Make your “gifts” informal.
-
Step 4: Keep records.
Detailed Guide
Taking the first step toward creating a giving fund is as simple as opening a bank account.
You can stay with your own bank where you already do business and just open a separate account.
If you believe you will be make regular donations or payments from this account, you may want to make a checking account for flexibility.
Otherwise, you can set up a savings account just to hold the money.You don’t actually even need a bank account.
If you are working with small amounts of money, you can just set it aside in a safe place.
The key is to separate the money that you are able to hold in your giving fund from your own finances.
With a small, personal giving fund, you do not have to bind yourself to any formal rules or donation amounts.
However, it will help if you can get yourself into a habit of making regular donations to your fund.
For example, it would help if you plan to set aside something like $10 each week or even at the end of each month.The amount of the money is not as important as establishing a regular routine.
You should make a point of doing it consistently at the same time. , The purpose of a personal giving fund is to allow yourself the opportunity to help people whenever the need might arise.
You might want to drop a larger than normal donation in a tip jar at the coffee shop or send a card to a friend who you know is in temporary need of help., If you are creating a giving fund for your own private donations, you probably do not want to concern yourself with any major record-keeping.
Even so, you should at least keep a notebook or some type of ledger to record the money you put into the fund and the donations that you make from it.
Depending on the amount of the contributions that you make, you may choose to claim the money as charitable tax deductions.If you want to claim deductions for donations that you make, you will probably need to get receipts, depending on the amounts involved.
You may want to read Claim a Church Deduction for Federal Taxes or Itemize Charitable Donations for some more information.
About the Author
Henry Chavez
Writer and educator with a focus on practical pet care knowledge.
Rate This Guide
How helpful was this guide? Click to rate: