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We have all been feeling the squeeze as of late, and philanthropy is feeling it, too. The costs of things we buy, be it food, clothing or even entertainment (have you seen the price of a baseball game recently?) seem only to go one way — higher. Economists blame inflation, pandemic remnants and supply-chain challenges.

We’re left with two issues: The things we buy are increasing in cost, and the sources of our money’s growth (stocks, bonds, etc.) are declining — hence, the squeeze.

The financial squeeze may make us reconsider donating to the causes we care about, but now’s the time to keep giving. Giving back is not only the right thing to do, but it also feels good to know you are making a positive impact in the world.

Here are a few ways to find room for philanthropy, even in challenging economic times:

1. Take a closer look at your finances.

Evaluate your finances and see if there’s anything excessive to cut. Donate funds to a charity of choice by creating (and sticking to) a reasonable budget.

Once you can set aside money to donate, consider automating a monthly contribution so you won’t be tempted to spend the money elsewhere.

Depending on your economic situation, you may also consider contributing to a donor-advised fund (DAF). A donor-advised fund allows investors to contribute to a charitable fund while still keeping control over the assets.

With these funds, donors get an immediate tax deduction while controlling how to invest the assets (including stocks, bonds, mutual funds, Bitcoin and crypto, among others) and for which charities over time.

Contributing to a DAF during a high-income year is a great opportunity to maximize both your philanthropic efforts and charitable tax benefits.

A DAF allows you to start small and encounter far less of the red tape that comes with private foundations. A DAF also does not mandate a certain cadence with respect to grants. In fact, the capital continues to grow tax-free (though it is no longer yours) until you and your family decide which nonprofits you would like to support.

2. Make donating a family effort.

In September 2022, Patagonia’s founder, Yvon Chouinard, transferred the company’s ownership to two nonprofits fighting climate change. Patagonia estimates that $100 million annually will go toward environmental efforts.

To plan and implement his legacy gift, Chouinard established a board of trustees and included his family in the planning process. When a donor’s family understands the big-picture goal, they’ll likely want to support and contribute.

Donors who include their families in discussions about their intentions will find it easier to get them on board.

Not only can contributing to a nonprofit as a family create memories and a bond, but it also puts more resources in the same place. Instead of each family member donating to a different cause, multiple people support the same cause and create a more significant impact.

3. Support nonprofits in other ways.

There are several ways to support nonprofits that don’t cost money but still make a big difference.

Start by volunteering your time. Nonprofits need helping hands to get things done. With volunteers, they can carry out their mission. Look for volunteer opportunities in your area related to causes you care about.

Donate your unused miles or points to a specific charity or a cause. If you’re not using them, consider donating your credit card points or rewards cash to nonprofits. Donating points means no tax deduction, but you don’t have to open your wallet to support your favorite nonprofit.

If you’re ready to spring clean or declutter your home, donate items to organizations in need. From books and cell phones to computers and eyeglasses, there’s someone who can benefit from it. Make sure to get a receipt for tax deductions.

Contractors and business owners may also consider donating their services to help a nonprofit. Teaching a class, providing consulting or working on a project pro bono is a way to support a cause.

Finally, spread the word about your favorite nonprofits. If you’re active online, share social media posts from the organization to boost awareness, or drop a donation link into your next email newsletter. Sharing, talking about and engaging with charitable organizations does make a difference.

Donations to charities have been on a roller coaster these last few years due to the pandemic and the financial market, and these organizations are feeling the squeeze on both ends. As donors, it is up to us to help charities continue to fight for important causes as much as possible.

© 2023 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC.