Tips on Giving Wisely
Changing the way you give
There are thousands of good causes that all ask for donations
all year round. People want to make a difference but often feel
overwhelmed by the sheer number of these requests for help.
Starting to think about giving more wisely and structuring your
giving in a more strategic way is the first step in responding
to the enormous issues that are present in our society those of
inequality, poverty, violence and illness.
Starting your own personal giving plan:
The world renowned giving expert Tracey Gary was kind enough to
allow us to use her philosophy and practical tools when outlining
wise giving*. One of the first things that you can start to think
about is developing your own giving plan this is a process of
putting into place an action plan outlining the way you want to
give over the next 12 months. It becomes a very valuable way to
work through in your own mind what is important to you, giving
you a sense of control over the way you are giving.
The beauty of a giving plan is that it gives you the freedom to
choose to give in different ways; you can align yourself with
people who share your values and vision, for supporting grass
root fledging groups or groups who are breaking new ground.
Or you may decide that you only want to focus on proactive causes
– ones that address structural poverty and inequality rather than
solely focusing on acute crisis needs.
These are the types of issues that you can start to think about
for your plan. For you this plan can be short or long, detailed
or very simple. The important thing is to go though a process
of thinking about your giving so that you become a better informed
and proactive giver. These are some important questions to think
about:
1. Why do you want to give?
2. Who to give to?
3. Where to give?
4. Which organizations to give to?
5. How to evaluate an organization?
6. How much to give?
7. How to give?
8. When should I give?
9. Follow Up
10. Annual review
Why
do you want to give?
A good starting point is to ask yourself why you want to give
to your community. For many people these reasons are varied but
by answering this question frankly it will make a real difference
to who you are giving to….
Tracey Gary, a donor activist and philanthropist for more than
25 years suggests that one good idea is to establish your own
mission statement answering the following question:
What do I want to do with my giving and why?
This question helps to define in your own mind what you want to
achieve.
Giving well requires that I listen to my inner self and make
more conscious who I am and what I want to express in the world.
That’s why giving is almost always satisfying to me whether or
not the projects I fund are successful - Harriet Barlow,
Inspired Philanthropy*
When working on your mission statement, these are some of the
different factors to consider:
• Do you want to help individuals meet their material needs?
• Do you want to give back to society?
• Do you want to support research for improving society?
• Do you want to improve medical treatment and research?
• Do you want to prevent problems in individuals and society?
• Do you believe you or your family have enough?
• Do you believe that those with more should help those with less?
• Do you want to reduce your personal taxation?
Knowing why you are giving is the important first step and will
help in your giving efforts.
Who
to give to?
Having worked through some of the reasons why you give, it becomes
easier to work out who to give to.
Reflect back to what you did with your giving in the last year.
What are the organizations you currently give to? How did you
first get involved? What gives you the greatest satisfaction?
Your giving will have more meaning for you and your commitment
to giving will be easier to sustain if you give to the causes
that matter most to you causes that match your interests and values.
• Perhaps a medical research group working on a cure for a disease
that affects someone in your family.
• Or it might be the arts organization you enjoy as an audience
member or at a local level as a participant.
• Or you may wish to concentrate your giving on groups that help
children.
• Or you might want to support community groups that fight for
rights and prevent social disadvantage in the first place.
Other questions may also help you:
• If I could change three things about my community, what would
they be?
• What issues do I really care about?
• Should I support causes that directly benefit me?
• Am I willing to support causes that do not benefit me?
• Which type of work do I prefer to support e.g. research , direct
service, public education, self-help, advocacy?
Getting these clear in your mind then leads you to start giving
with more confidence and purpose.
Where
to give?
One important issue for you to consider is your own preference
for giving in terms of location of the cause.
• Do you want to give to an organization in your local community
or region?
• Or are you more interested in supporting a state, national or
international cause?
You may feel that your giving will have the most visible impact
if you give close to home. You are more likely to see first-hand
the benefits of your gift, as well as the need for it and are
better able to investigate an organization or engage in its activities
to gain an insider’s perspective on it.
In making a decision to give to a national or international cause
you need to ask if you are overlooking a local group that addresses
the same needs?
Also, your definition of community whether it be geographic, social
or economic will affect your decision.
Which
organizations to give to?
Once you have decided on the causes or issues you would like to
give to and whether they be local, national or international,
then you need to choose the actual organizations you will support.
A good starting point is to analyse your current giving.
• Make a list of the organizations you currently give to and identify
why you got involved in giving to them.
• Were they deliberate choices or did you accidentally start giving
to them and continue through habit?
• Do they still give you pleasure or do you need to change your
giving to reflect your current interests?
If after going through this process you decide that you need to
rearrange who you are donating your money to, then the following
may help you to select specific organizations which reflect your
interests and values:
• Make a list of all the community organizations that make a difference
to your life and to the life of your family: from support for
childhood, including your schools, to support for your older friends
and relatives, giving them a place to go or to belong.
• Do you feel indebted to any particular organization?
• Do you like to know exactly what your money is supporting?
• Do you like to fund buildings?
• Do you like to fund specific projects?
• Do you prefer to give to organizations mainly run by volunteers?
• Do you prefer to give to small or to large organization?
• Do you prefer to support an organization that is just getting
started or one that is already well established?
How
to evaluate an organization?
Community organizations operate in different ways and use their
funds differently. So before you give, it’s a good idea to be
aware on how the organization operates.
Some questions that you may like to ask yourself:
• Do I agree with its programs and goals?
• Does it achieve worthwhile results?
• Do I like the way it is run?
• Do I like how it reports its activities and accomplishments?
• Is it already healthy financially and so may not need more immediate
money?
• How does this organization compare to others of similar size,
age and mission?
• What criteria will I use to decide if the money I contribute
is well spent?
• How will I know if my criteria are met?
• How will my contribution be used?
• Will my donation be spent on the issue or problem directly?
• Will my donation be tax deductible? Most people never claim
a tax deduction, so is it that important most smaller community
groups do not have tax deductibility?
• How much of the budget is used for fundraising and administrative
overheads?
• Does it have significant funds in reserve?
• Is it willing to share information with me?
• Will it respect my rights as a donor?
• Does it establish personal relationships with donors?
How
much to give?
You need to plan your giving just as you would your other financial
obligations. Often a way of thinking about how much to give is
as a percentage of your total income. On average Australians give
away a very low percentage of their income.
Some of the issues to consider when working through the size of
your giving:
• How much can I spend on giving while still being able to meet
my family needs and without financially risking my savings?
• How much do I feel comfortable spending on my giving each year?
• Do you want to give a large contribution to one or a few organizations
allowing you to become more closely identified and involved with
those organizations?
• Would you prefer to give smaller sums to several, thus being
more anonymous and diversifying your giving to match a broad range
of interests?
• How does my current level of giving measure up to the average
estimated affordable contribution for my income group?
• Where possible, give before retirement when the tax rate is
higher.
• If you receive a premium in exchange for your gift (such as
a book or a dinner) the amount of your tax deduction is reduced
by the fair market value of the premium.
• Remember to maintain records of your donations - both for taxation
purposes but also so that you can see the causes you have given
to over time and get a better picture of the difference you have
made through your giving.
How
to give?
There are issues that you need to consider, no matter what level
of giving you can make, but obviously if you give more then these
questions become more significant:
• Do I want to give on a regular basis to one or more organizations
perhaps via payroll or credit card donations?
• Or do I prefer to make one off donations at various times of
the year?
• Do I prefer to respond to appeals as they arise?
• Do I like to give via the internet?
• Am I able to make pre-tax donations through my workplace?
• Should I consult a financial adviser about planned giving?
• Does my will include bequests for organizations that are important
to me or from which I have benefited?
• Have I considered giving shares?
• Do I want recognition for this gift or would I prefer to remain
anonymous?
• How much time can I dedicate to follow-up and evaluation of
my contributions?
• Consider making cash donations instead of buying raffle tickets,
merchandise or helping to sell confectionery as these are tax
deductible.
• Check to see if your employer may be willing to match your gifts.
When
should to give?
Planning your giving also involves deciding when to give. Giving
sporadically as causes arise during a year may work for you. However,
being more strategic and proactively planning your giving may
ensure that you are giving to the causes that really matter to
you and may give you greater satisfaction, particularly in the
longer term. It also gives you a rationale for saying no to all
the requests that come your way as you have worked through in
your own mind how you are going to put back.
These questions may help you to decide what works best for you:
• When is the best time of year for me to give?
• Do I want to respond to pleas for donations during crisis?
• If so, do I want to set aside an amount for crisis responses?
• Do I want to set criteria for crisis responses?
Follow
up
Even after making your choice, it’s wise to follow the group’s
progress after you make a donation. By insisting that organizations
be accountable for the way they use your donations, you are doing
more than reassuring yourself, you are reinforcing the integrity
of charities and other non-profit organizations.
You can do this more easily in the local community by visiting
the group, attending their activities and talking to people about
the results of their work.
With more distant and larger groups you can read annual reports,
check out websites and scan the media for reports about the organizations
well being.
Annual
Review
Giving strategically means that you need to review and update
your plan on a regular basis as your passions and financial situation
may change. Maybe link this review in with the dreaded tax return
each financial year.
Read
more at http://www.ourcommunity.com.au/
