IBA SUCCESS MAGAZINE Volume 6 Campaign 1

SHAKERS & MOVERS n CHARITY CORNER It Is Your Money— Donate It Wisely TIPS TO DETERMINE YOUR 2020 CHARITABLE DONATIONS By Laura Dorsey A mong all of the things that happen at the beginning of each year is the fact that more than 1.1 million charities are asking for dona- tions. Our social problems are massive in scale and our organizations are tiny up against them. Nearly four of every five private dollars that go to American charities come from individual donors. If you are not independently wealthy, or even if you are, you are a philanthropist and how do you decide which cause to support? What cause do you want to have an impact on? No time to research to find the organization that you feel is doing the best work on the problem; well that is where we come in. IBA Success is dedicated to educating and empowering our readers. This article will provide a little research, a bit of due diligence, and help with soul searching to make sure that your charitable donations are making a difference. Here are a few tips for choosing the recipient of your charitable donations. WHAT DO YOU BELIEVE IN? What causes matter to you the most? Giving is not a business transaction, it is a human connection. You don’t have to give to everyone who asks, so ask yourself some questions. Are you interested in people, animals, or the environment? Do you want to give internationally, nationally, or locally? Many people prefer to support charities that are working in their communities. You can see your neighbors or your community as a whole benefit directly from their work. You can work with a group and develop the insight that only comes with close involvement. Does the charity inspire you? If possible, do an in-person visit, ask for a tour, research the same way that you 30 IBA Success Magazine n VOL 6, Issue 1 would test drive a car and do not just rely on their website. Can you make them a charitable partner for life? You want to give not only because the organization addresses a cause, but also that it tugs at your heartstrings. SIZE Is the size and name recognition important to you? Some charities are known by practically everyone and others are unknown to most people. If you choose a large well-known charity, you can be pretty sure that this is a group that has been around for a while. If you support a smaller, less-known charity, your gift may constitute a larger part of their budget. It also may be easier to get involved in other ways such as volunteering. Sometimes the best way to determine an organization’s effectiveness is to get involved by being a volunteer, working on a committee, raising money or whatever you can do. Many people simply are not going to have the time to do this. There are arguments for supporting charities of any size. MISSION STATEMENT All nonprofits should have their mission statement on their website. Find one whose mission aligns with your preferences and answers the questions that you just asked yourself. Give it to a group that you know. If you already know the organization and know their work, you will know with some degree of confidence that your donation will be put to good use. FOLLOW THE MONEY You work hard for your money and you should not want to give it away. Your nonprofits of choice should work effectively to spend their donations. In general, efficient groups will spend at least 65% of their funds on the causes they support. Their programs, grants, and donations should be clearly defined on their website. A good nonprofit should have a positive rating on a site such as GuideStar ( https://trust. guidestar.org/) The website should also provide a listing of their board directors, donor privacy policy as well as measurable goals and documented successes. Be careful of donating to a university or hospital. These are bringing in hundreds of millions of dollars and tuck them away in a savings account endowment, while a local homeless shelter or soup kitchen struggles to raise money. Large organizations tend to be less transparent about where their money goes. THE COMPANY THEY KEEP You want to check out what partners or sponsors are supporting the nonprofit. Do you want to donate your money to an organization that does not have any other partners? Most nonprofits will list sponsors on their websites. Are they companies that you have heard of? Giving is a personal act. It is a known fact that people act from the heart, not the head. You want to choose a nonprofit that is a good steward of your donation since it is hopeful that your relationship will be long-term. At the end of the day, whatever the reason; that you want to leave a legacy, that you are fortunate and want to give back, or that you want to be seen as a role model — JUST PICK ONE ORGANIZATION AND START THERE. n

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