More travelers than ever want to give back to the communities they visit. These financial tips can help as you’re planning your trip.
WE’RE ALL IN THIS WORLD TOGETHER. That realization of our common interests is one of the benefits of travel, and it’s a lesson that the pandemic has only helped to underscore. Now, as people plan vacations, many are looking for ways to connect even more closely with the environments and communities they visit. “They want to engage with fellow citizens, and even leave their chosen destination a little better than they found it,” says Pauline Frommer, editorial director of the Frommer’s travel guidebooks and frommers.com.
One way to do that? A volunteer vacation (sometimes referred to as “voluntourism”) gives you the chance to join a group of like-minded people and make a difference in the world for a period of time that can range from a few days to a few months. The category is as broad as the values of the people who take them. Just a few examples: clearing litter from a Florida beach, removing invasive species from a national park in Hawaii (before a spot of whale watching), or rebuilding homes for low-income families in rural Appalachia.
Voluntourism doesn’t benefit just the destinations visited, says Samantha Jo Warfield. She’s a spokesperson for AmeriCorps, a government-supported volunteer program that offers short-term travel service options. “There’s a growing body of research indicating that volunteering is good for your health,” she says. In fact, studies have shown a connection between volunteering and lower rates of mortality and later-life depression, as well as lower blood pressure.1 And especially if you’re nearing retirement, it can be a gateway into a potential second-act career. “A lot of people find their true purpose through service,” Warfield notes. (See list above for some organizations that offer volunteer vacation opportunities.)
Whether you see a volunteer vacation as a long weekend or a major commitment, planning ahead can go a long way toward making the experience more fulfilling. Could your expenses be tax-deductible? Do you need travel insurance? How can you manage your finances if you commit to a longer volunteer stint? Consider these tips before planning your trip.
Volunteer vacations generally offer more rustic accommodations and may require a higher level of physical activity than would a typical vacation. Take the time to research your options thoroughly so you don’t find you’ve made a mistake once you get there.
Consider how long a commitment you can make, how many hours a day you want to work, how much physical labor you’re willing to perform and what the age range of the people you’re with will be, so that you find the best fit. Talking with others who have gone through the experience can help, so don’t hesitate to ask for references. “And you should always do some research to make sure the organization has a track record,” says Frommer.
Finally, be thoughtful about your goals and what you hope to achieve, says Warfield. Do you want to bring your family and teach them life lessons, or take a solo journey of self-discovery? Do you want to use your existing skills, or are you looking to learn something completely new?
Volunteer vacations are often pricier than their more conventional counterparts, because you’re covering not only your own costs but also a part of the organization’s costs. Bear in mind that in addition to the organization’s fees—which can range from several hundred dollars to several thousand dollars—you’re typically on the hook for your airfare, vaccinations, visas and other personal expenses. In some instances, you may also want to consider emergency medical evacuation insurance. Start by drawing up a preliminary travel budget to “put real numbers around how much you’re going to need while you’re away,” says Merrill Financial Advisor Aubrey W. Lee Jr.
One financial consideration is the length of time you’ll be away. While some volunteer opportunities are for a few days or a week, others may last a month or even several. If you’re looking at something on the longer side, think through what it will cost—both the extra expense and the income you may forgo.
If that number seems a little higher than you’d like, look for ways to whittle it down. For instance, you may be able to rent out your home while you’re away—though you might need an umbrella insurance policy to provide liability coverage for your tenants, suggests Lee. Ask your tax advisor whether some or all of your expenses could be tax-deductible.
If you’re leaving home for a month or longer, you’ll need to make arrangements for someone to handle your financial matters. Try to put most of your bills on autopay and—especially if you’re headed to a rural area with potentially spotty WiFi—talk to your financial advisor about what happens if something unforeseeable occurs and you can’t be reached. “Make sure your advisor knows who you’ve selected as your power of attorney and has access to that document,” Lee says. Also consider sharing with your advisor the contact numbers of other professionals, such as your accountant, and close relatives or best friends.
If your volunteer vacation takes the form of an unpaid sabbatical from your full-time job, keep in mind that you won’t be contributing to your 401(k) while you’re away. You can, however, use catch-up provisions to make up some of the shortfall if you’re age 50 or older. If you’ve had any earned income during a volunteer stint, you can also continue to contribute to an IRA, notes Ben Storey, director of Retirement Thought Leadership at Bank of America. If you’re already retired and thinking about drawing from your investments to pay for the trip, consider the potential effects on their future growth as well as any tax consequences, he adds.
But whatever financial tradeoffs you might make to take your volunteer vacation, never lose sight of the value of the experiences you’ll have. The satisfaction of giving back while getting away is sure to make this a vacation you’ll never forget.
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