The bioethicist Peter Singer had a thought-provoking article in the New York Times a couple of years ago, available for free here:
http://www.nytimes.com/2006/12/17/magazine/17charity.t.html
In it, he makes the case that most well-off people can afford to give generously to charity without affecting their lifestyle. Basically his formula (which is based on US demographics) is this:
What do people think of these targets? Do you set an annual goal for your charitable donations?
I came close to reaching the 10 percent mark a couple of years ago (and couldn't even deduct most of it from my taxes because my biggest donation went to a US-based charity), but then we bought a house and I have found it challenging to balance my desire to pay off the mortgage (and fund my retirement) with my desire to do my part to help the causes I believe in. Last year I only gave about 1% to charity; my goal this year is 5%, and I want to ramp up to 10%. But it's proving harder psychologically than I expected.
http://www.nytimes.com/2006/12/17/magazine/17charity.t.html
In it, he makes the case that most well-off people can afford to give generously to charity without affecting their lifestyle. Basically his formula (which is based on US demographics) is this:
- If you're in the top 0.01 percent of earners (average income of $12 million/year) you can give away a third of your income each year and still live awfully large.
- If you're in the top 0.1 percent (average income of $2 million), you can give away a quarter.
- Those in the top 0.5 percent (average $623,000/year) can give away one-fifth.
- Those in the top 1 percent (average $327K/year) can give away 15 percent.
- Those in the remainder of the top 10 percent (average $132K with a minimum income of $92K/year) can give away 10 percent of their income annually.
What do people think of these targets? Do you set an annual goal for your charitable donations?
I came close to reaching the 10 percent mark a couple of years ago (and couldn't even deduct most of it from my taxes because my biggest donation went to a US-based charity), but then we bought a house and I have found it challenging to balance my desire to pay off the mortgage (and fund my retirement) with my desire to do my part to help the causes I believe in. Last year I only gave about 1% to charity; my goal this year is 5%, and I want to ramp up to 10%. But it's proving harder psychologically than I expected.