Chasing the Fionist Dream

We talk a lot in this blog about being intentional with our money: saving money on things we care less about and spending on things we do. This enables us to live comfortably within our means and allows us to invest our way to our goal of financial independence and retiring early. When trying to save money and cut our expenses, it’s easy to cut things that we don’t see immediate benefit from, such as saving for a rainy day or helping others. Charitable giving, or tzedakah, doesn’t benefit us directly in the short or long term and doesn’t give us anything material in return. Yet it is a permanent fixture in our budget and has its own line in our expense tracker.

So why is charitable giving (tzedaka) an integral part of our monthly budget?

1. The world is bigger than ourselves and we are all interconnected. We feel incredibly blessed and want to give back and make the world a better place. We plan to continue giving – and volunteering our time as well – after we reach financial independence.
   
   
2. We have several causes that we are passionate about, including mental health, environmental issues, financial education, women’s rights and other social initiatives, and helping needy families in our neighborhood and throughout Israel. We consider ourselves fortunate to be able to support these issues.
   
   
3. We are deeply familiar with how nonprofit organizations work. Between the two of us, we have over a decade’s worth of employment experience at amutot. Having been on the receiving end of donations, we have seen that even 50 or 100 shekels makes a difference.
   
   
4. We have personally benefitted from the services of nonprofit organizations, including youth groups, teen programming, support groups, and even Chabad houses around the world. You most likely have too.
   
   
5. Giving monthly makes it easier for us to remember to do it. It is also easier to fund smaller sums every month than larger sums a few times a year. Just like we pay ourselves first and invest at the beginning of every month, we donate at the beginning of each month too. That way, those two things are taken care of, and we can live on the rest.
   
   
6. It is a mitzvah (Torah-mandated good deed). Money given as charity will come back as blessings for you and your family.
   
   
7. We get some of it back on our tax return. This isn’t a reason to give, but if you’re giving anyway, it’s a nice perk 😉
   

There are so many organizations out there. How do we decide who to give to and how much to give?

• What are you passionate about? Which of the world’s problems bothers you the most? This is your chance to put your wallet where your mouth is and change the world.
  
  
• Find out which charities work in that sector. JGive is a good place to start your search. We like donating through them since they organize all of your receipts in one place, which makes it easier to find them when you need them. They also partner with some Israeli workplaces to include your tax refund in your tlush, which is pretty cool. Check with your employer to see if they offer it or can get it rolling.
  
  
• Check out Guidestar to learn more about the organization and see their financials. Contrary to popular belief, it’s not all about having as little overhead as possible. Remember that in order to operate effectively and retain their skilled employees, amutot need to pay them what they are worth – or they will leave, just like in any other sector. Some nonprofits that provide social services have most of their budget go to salaries, because they need to pay the people providing the service. If you need convincing, make sure to watch our favorite TED Talk on the subject.
  
  
• Decide what percentage of your budget you can afford to donate each month. As we said above, even 50 shekels a month is a great start. When your income goes up or certain monthly expenses disappear or go down (like when our son starts public nursery school next month!), we increase both our monthly charitable giving and our investments.
  
  

Which charities do you like to support? How do you decide how much and when to give?

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