Great Giving That Hits the Mark
By Marie Elium
You don’t have to be rich to be generous with money, but you should be savvy.
Picking up a veteran’s meal at Applebee’s or dropping cash into the Salvation Army kettle at Christmas are thoughtful gestures. But if you’re crafting an estate plan and want to give a chunk of money to a charity or organization, make sure your donation serves both your intentions and the charity’s needs.
Unintended Consequences
Here’s a real-life example: A long-time church member left money to his denomination to build new churches. While that may have been the church’s need when the person made his will, it’s not the situation today. The denomination is consolidating churches, not building them. He has no surviving relatives to request a change in the terms. The money continues growing but is unavailable to the church—not what the donor intended.
That example is why potential donors should both understand a charity’s needs before giving money and not place rigid restrictions on the donation, says Laura Lederer, vice president and chief development officer of the Akron Community Foundation.
The biggest misconception Lederer encounters is that ‘only rich people are philanthropic.’ ACF works with people who have $5,000 and more to give. The organization helps them craft multi-generational gifts that grow over the years; enabling subsequent family members to recommend how the money is distributed to the family’s favorite charities.
“It’s not a transactional relationship. We want to understand what you value as a family to get to the heart of (intentions),” Lederer says. “We want to help people feel good about what they’re doing.”
ACF and similar organizations manage Donor-Advised Funds, charitable investment accounts that provide tax-free growth, tax benefits and flexibility to donors. Lederer says DAFs are the fastest-growing vehicle for giving in the United States.
People who want to support a cause often aren’t sure which group is doing a good job and if they’re handling their money responsibly. Researching a charity on your own or working through a group like the Akron Community Foundation can take the guesswork out of charitable giving, providing a lasting and impactful legacy of philanthropy.
“If you’re going to give a gift, try to be more broad in what you want the money to be used for,” she says.
“Northeast Ohio is unique. People grew up here, made money here, raised kids here and want to give back. It’s a very loyal, philanthropic community.”
How Good Is a Charity?
- Charity Navigator – charitynavigator.org
- BBB Wise Giving Alliance – BBB’s give.org
Questions to Ask Before Donating to a Nonprofit
- Do you believe in the organization’s mission?
- Does the nonprofit seem to live up to its mission? How do you know?
- Can you find clear information about the impact of its work?
- Does it spend the bulk of its money on programs?
- Does it have a religious or political affiliation? If so, do you mind?
- Is the website secure and up to date?
- Is there anything about the nonprofit that concerns you?
Source: ProPublica
