Donating my winnings, but need to keep a bankroll

[bostondave]

As a New Year's Resolution, I've decided to donate my poker winnings to charity. I play poker for fun, not for the money, and there's enough other people out there who need help. So my plan is that every month, I pick a charity, and whatever I made that month goes to the charity. I figure, though, that I should keep some for bankroll-management purposes. How much should I keep? Details:

I play online in .25/.50 NL games, sometimes going up to .50/1 NL, and low (5+1 or 10+1) NL Hold 'em tournaments. I also play a weekly home-game with a $10 single-table tourney followed by a .25/.50 NL cash game. Over the past 3 months, I've averaged about $15/week in the home game. I have only been keeping track of my online winnings since 11/1, but I've turned $50 into $900 in that time, counting bonuses and winning a $5+1 MTT last night (first time in the money in a MTT!!). I realize that I've been running very (and unsustainably) good online, but I think it's fair to say I'm a winning player (at least at those limits). Ideally, I'd like to to move up in limits eventually, but I don't want to be limiting myself to giving $5/month to charity.

So my question is: Does anybody have any ideas of how much I should keep? I was thinking of either keeping x% of my winnings, and donating the rest, keeping $y, and donating everything over that, or setting my bankroll at $z, and donating anything that I have over that...if I have a losing month, then there would be no donations until I get back above my "floor". I don't know if any of these ideas are reasonable, or what x/y/z should be, but I'd be very interested in any and all ideas. If someone else has done something like this, how has it worked out? I cross-posted this in the Beginners forum...moderators, if that's a bad thing, please remove this post.

Thanks in advance for your help!

-Dave

[JonPKibble]

On the same train of thought, I have a similiar question. If I donate all my poker profits to charity do I still have to pay taxes on them?

I know this question should be better directed at an accountant, but perhaps there is one here lurking.

[schroedy]

On the second question, I would definitely talk with a tax advisor but the way I understand it is thus:

You do a schedule for your gambling earnings (net of gambling losses).

On a different schedule, you get to deduct charitable donations.

But the government stills wants/is entitled to see all the paperwork.

[bostondave]

[ QUOTE ]
On the same train of thought, I have a similiar question. If I donate all my poker profits to charity do I still have to pay taxes on them?

I know this question should be better directed at an accountant, but perhaps there is one here lurking.

[/ QUOTE ]

My fiancee is a tax accountant (hooray for me!). I will probably lose something in the translation here, but she told me that you have to claim your poker winnings as income (Well, you're *supposed* to claim your winnings as income), and therefore, you'll be taxed on them. However, if you itemize your deductions, you can include your charitable donations in that itemization, and bring your tax burden back down. Unfortunately for me, I don't have enough deductions to make it worthwhile to itemize. So I guess the short answer is that they can cancel each other out if you itemize.

[alThor]

[ QUOTE ]
[ QUOTE ]
If I donate all my poker profits to charity do I still have to pay taxes on them?

[/ QUOTE ]

...she told me that you have to claim your poker winnings as income ...However, if you itemize your deductions, you can include your charitable donations in that itemization

[/ QUOTE ]

Yup, and even if you itemize, there's a minimum $250 donation before you can count it. (See schedule A instructions.) I don't know how big your monthly payments were going to be, but you might want to save up for a few months to be sure you clear the $250 hurdle.

alThor

[bostondave]

I think I'm going to go w/70% of my winnings going to charity, unless I start losing $$...at that point, I'll drop down to 50% until I get back up to my $900. Good idea/Bad idea?

Thanks,
-Dave

[slickpoppa]

If your goal is to donate as much money to charity as possible, then you should not donate ANY money to charity as you are building a bankroll. If you allow yourself to build a good bankroll big enough to play at 5-10, you will be able to donate much more in the long run.

[NMcNasty]

I don't think you should donate anything to charity until you are an adept 5/10 NL player and have nowhere convenient to move up to.

You will be able to donate more when you get there and playing at higher stakes to me is more fun anyway, so everyone is happy.

[B00T]

Just be sure to let us know what charities are "rigged" on your losing months.

[CardSharpCook]

Donating to charity is a fabulous idea if you actaully do it. I started my poker carreer with the same thinking. Now I do this for a living. I changed over from a charity player to a money player in the same way these guys are suggesting you become a "bigger giver". I increased my bankroll, used all winnings to further my poker carreer - take on new challanges. I finally progressed to the point where I'm making 15 times what I make at my "job" per hour. I still go to my job, but this is my primary source of income.

Just a warning - If you really want to be a charity player - don't keep any winnings, don't worry about moving up. Keep a small bankroll (1k for the limits you suggest) and donate anything over that.

Greed may rival good intentions - be careful.