By Bruce DeBoskey
Tribune News Service
Millions of generous Americans regularly donate to charities as individuals or as part of a family or business. At the same time, many other people buy into myths about giving — myths that undermine their willingness to give (or give more) to worthy causes.
Common excuses I’ve heard include:
The problems are too big. Although one person or business cannot end poverty, eliminate injustice or eradicate hunger, even small acts of charity given to effective nonprofits can indeed change the world. For example, the coins collected by trick or treat for UNICEF have raised more than $175 million to help the world’s children — and helped save countless lives.
Nonprofits spend too much on overhead. The “overhead myth” has been widely challenged in recent years. Effective nonprofits addressing complex problems need experienced, well-compensated professionals and the tools needed to advance their missions. This issue is thoroughly addressed in “The way we think about charity is dead wrong,” a TED talk by AIDS Ride founder and professional fundraiser Dan Pallotta.
Nonprofits waste or steal too much money. The vast majority of nonprofits are well-run. Organizations like Guidestar, Give Well, Charity Navigator and BBB Wise Giving Alliance provide research on a range of nonprofits. Plus, an annual IRS Form 990 with detailed financial, governance and program information is available online or on request for every U.S. 501(c)(3).
Never donate to door-knockers or phone solicitors, even if you recognize the nonprofit’s name. Too often, most of the money raised goes to the solicitor, not the charity.
I need to preserve money during my life for my own needs. After my death, I’ll use my will to donate what’s left. Of course, our first obligation is to take care of ourselves and our loved ones. Nonetheless, many people die having accumulated more they needed needed to accomplish these goals.
A financial adviser can help calculate how much you reasonably need during a lifetime. Armed with this information, you can give more boldly — while you can enjoy it. Donating during one’s lifetime is far more satisfying than donating from the grave.
The purpose of my business is to make money, not give it away. Businesses are indeed built to be profitable. However, a strong body of evidence demonstrates that strategic community investment by companies of all sizes increases profits by improving employee recruitment, retention and engagement; enhancing customer loyalty; and creating more favorable evaluation by regulators and investors.
I don’t have the time to get involved with strategic giving. Someone else can solve the problems. Doing philanthropy well and engaging the rising generations in your family or your business’s employees does take time. When you leave the charitable giving to others, however, you diminish your own voice. You cannot be sure that challenges are being addressed, opportunities preserved and lives improved in a way that matters to you. The time you spend on strategic giving is well-spent. Plus, there are experts out there who can help make the job easier and more successful.
I don’t have enough money to be a real philanthropist. The way you approach your giving is far more important than the amount you are able to give.
Bruce DeBoskey is a philanthropic strategist working with The DeBoskey Group, www.deboskeygroup.com,to help businesses, families and foundations design philanthropic strategies and plans.
— Tribune News Service
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
