Practicing Philanthropy

Practicing philanthropy is a noble cause, but such compassion should come with caution. You should always know who you are giving your money to when practicing philanthropy, because there are many people and organizations disguising themselves as genuine charity organizations. This makes philanthropy a problematic undertaking, although not an impossible one. When giving money to a selected charity, consider taking precautionary measures to avoid being scammed.

Evaluate your current income and decide whether you make enough to afford being philanthropic. No amount of money is too small, but you should know that whatever you do set aside should be calculated as part of your budget. Establish a yearly amount that you can afford to give.

Learn about all the charities with causes that interest you. Try to get as much information as you can about them before giving your money. Charities should be open to sharing their mission, financial report, and any other information that you want to know before making a philanthropic commitment. Ask for a copy of their annual report and try to pull together a full picture of the charity’s objective. Be wary of any organization that is not willing to share this information. Unfortunately, there are many organizations that disguise themselves as charity organizations, but their objective is to simply steal your money.

Be certain that the organization you are interested in is both licensed and registered according to state and federal requirements. If the organization has gone as far as becoming established in some manner, then the likelihood is that it has some credibility. Don’t let this be the only way of determining its validity, however.

Stay away from any organization that insists that you give money immediately, and without time to consider your options. Philanthropy is a very personal undertaking and you should be certain of an organization and its cause before giving money. Any organization rushing or bullying you into handing over money, or even making you feel guilty about a cause, should be avoided. You need to be comfortable about any charity before giving money. And always trust your instinct.

Be cautious about any charity with a name that sounds familiar. Make sure that it is legitimate by doing your research. There are many watchdog groups dedicated to confirming which charity organizations are valid and which ones are not.

When giving money to charity, always write a check. This way you will have a record of your philanthropic gesture. Donations of more than $250.00 need to be proven with a receipt that also states the charity organization’s name. Ensure that the charity does maintain tax exempt status if you plan on deducting your donated amount when filing your taxes.

Understand that not all of your charitable contribution will go toward your chosen organization. Usually a percentage will go toward fundraising and administration expenses. Ideally you should practice philanthropy with organizations that submit a minimum of 60% of your donation to your chosen cause.

Don’t allow a charity organization to bribe you into donating your money. Many organizations offer a gift in return for a monetary donation. Determine a cause and be passionate about it. Only allow your desire to help a specific cause be your determining factor. If there happens to be a gift, consider that a bonus.

Remember that practicing philanthropy is a subjective act. However, there are impartial steps that must be taken to ensure that your funds are used in the manner that you intended. There is only so much that you can know about where and how your money is used exactly. But if you do your homework and give your money to a credible and well known charity, you can be sure that at least your funds will go toward a cause that you are very passionate about.