I recently began donating to the local orphan’s fund through my employer. This means, they take out the donation amount from my gross income, rather than my other donations to organization that come straight from my pocket, or from my net income.
The advantage to having deductions from your gross paycheck is that they lower your overall gross, which means that, potentially, you could be taxed differently and get more of your money through your paycheck.
Now, I am only donating $1 a paycheck, so a total of $26 a year; therefore, my gross won’t change enough to alter how much I am taxed. But, for people who make a lot more than I do, donating $100, or even $1000 straight from your paycheck can save you big time come both paycheck and tax season.
Both you and the charity benefit. Frankly, I should have them do all my donations through my paycheck, that way the charity will get the money no matter what.
How do you donate? Why do you donate?