Give Wisely

by Lisa Pencraft

"Love cannot remain by itself—it has no meaning," said Mother Teresa. "Love has to be put into action and that action is service."

As charities’ telephone and mail solicitations endlessly pour in, especially around the holidays, how can we decide which efforts most deserve our time and donations? Thankfully, Charity Navigator, Charitable Choices, and the American Institute of Philanthropy, a national charity watchdog organization, each provide a "Charity Rating" guide plus excellent tips for wise giving.

Charities are big business

According to Charity Navigator, an independent evaluator of more than 330 charities, "Few people realize how large charities have become, how many vital services they provide and how much funding flows through them each year. Without charities and non-profits, America would simply not be able to operate. Their operations are that big."

At recent count, 83.9 million American adults volunteer their time and talent to more than a million charitable causes. The National Philanthropic Trust reports that we are equally inclined to give of our hard earned dollars—to the tune of $295 billion in 2006. Most of this treasure, about $223 billion, came from individuals.

Good givers make sound decisions

Still Aristotle’s historic observation about effective giving remains true. "To give away money is an easy matter and in any man’s power," he stated. "But to decide to whom to give it, and how large, and when, and for what purpose and how, is neither in every man’s power nor an easy matter."

Experts counsel that we first get to know any charity, and find out where the dollars go, before giving to it. Basics of responsible giving include: never give cash, confirm 501(c)(3) status, keep records and—this may surprise—concentrate philanthropic giving.

Limiting giving can grow the gift.

Unfortunately, it turns out that spreading money around to numerous charities yields unwanted results. These include diminished opportunities for bringing about significant change in a cause that is important to the donor, and a mailbox bulging with more appeals, which is a waste of time, energy and resources for the charity. Sophisticated givers recognize that charities must pay a sometimes hefty percentage of their income to fundraising as well as overhead expenses.

Savvy donors also like to see the results of their giving. That’s no doubt part of why we volunteer. Here organizations like Volunteer Match, Charity America and Virtual Volunteering stand ready to help us find opportunities that make our souls sing.

Volunteering with local charities and earmarking dollars for own community also allow donors to see the faces of recipients and participate in progress. Such giving connects us. And, as Maya Angelou remarks, can "liberate the soul of the giver."

Visit CharitableChoices.org, CharityWatch.org or CharityNavigator.org for more information on wise giving and worthy charities. To learn about volunteer opportunities see VolunteerMatch.org and CharityAmerica.com. For details about the Virtual Volunteering Project (opportunities such as mentoring, editing or translating over the internet), visit ServiceLeader.org/new/virtual/index.php.