Charitable giving: A transformative experience

You’ve probably stalled in making a charitable gift numerous times before. Thinking you can’t afford it, will be embarrassed because your gift will be small, you won’t be able to choose among the many worthy organizations – it’s too much. You give up and decide to get to it later.

These are but a few of the many barriers to charitable giving. In my more than twenty years as a fundraiser, I’ve heard them all. I try not to cast them all as excuses, as some are surely valid. But the reality of charitable giving is that we can all do it and it doesn’t have to be complicated. It’s true that some of us can place more zeros at the back of the figure on our check, but given the tremendous need in our community, we can all do something. Here are some simple guidelines to help you take the plunge into the charitable giving pool.

Proactive or reactive? Do you initiate your charitable giving or do you simply respond to requests you receive? Whether responding to a call from a friend/business associate or answering a compelling piece of direct mail, many people develop giving habits that are solely reactive. There is nothing wrong with this, but proactive giving feels quite different and is considerably more satisfying. Whether we are invited to a special fundraising event, receive annual appeal mailings, or a phone-a-thon call, we are being “hit” frequently as potential donors. But guess what? You don’t actually have to respond to any appeals. Imagine how great it might feel to send a check to an organization you admire that has never asked you for support.

How much to give? As a family, establish a charitable giving budget for the year. While you may stray from this due to an unexpected and highly urgent need or a dramatic change in your own financial status, a budget will help you stay on track and make the most of each giving decision you make. In its earliest form, tithing was a charitable giving practice that allocated a certain percentage of income for giving – traditionally ten percent. There is no magic number, however, and setting any budget for giving will be helpful. And, teaching your children to set aside a percentage of their allowance for tzedakah sets the stage for a lifelong practice of giving.

What do I need to know before making a gift? The dramatic explosion in the numbers of charitable organizations in this country, and in Rhode Island, is daunting. How do I know if any particular organization is worthy? Unless you plan to spend significant time and energy (which may make sense if the gift you are considering is significant) digging into the organization’s finances and tax return, here are a few simple steps you can do.

Go to the organization’s website and give it a quick look. Is there clear information about the mission and programs of the organization? Is there a list of staff and board members that you can review? Do they describe how much money is raised and how it is allocated within the organization?

Go to Guidestar.org and make sure the organization is classified as a 501c3 public charity. If not, your charitable gift may not be fully deductible on your taxes.

As far as you know, is the organization stable or is it in crisis? The crisis might be financial or might be a leadership transition. If the latter is the case, go in with your eyes wide open knowing that your gift might carry some risk of not achieving the goals you’ve set out for it.

How should I choose the organizations I will support? In my work with many generous donors over the years, I have learned that there is a direct correlation between the level of focus in giving and the level of joy and satisfaction. Sprinkling “fairy dust” (many small gifts made to many charities) may seem appealing but is it meaningful? Instead, to find clues that will help you focus your giving, ask yourself these questions:

What are the institutions, experiences and people that have had the most impact on my life?

What moves me the most in world events – both most troubling and most delightful?

What are my heart and mind telling me?

Think of giving as an investment in the future of the world. By taking time to find your passion in giving, you are tapping into your personal ability to change the world. And while that may sound lofty, it doesn’t need to be difficult. In fact, philanthropy should be a joyful experience. If you are making gifts, whether large or small, but not enjoying the contribution, why not take a pause.  Take your own charitable giving pulse, talk with friends and family, get focused and transform your giving experience.

CAROL GOLDEN is Senior Philanthropic Advisor at the Rhode Island Foundation. She has served the Foundation in a variety of roles since 1991. The Rhode Island Foundation, founded in 1916, is one of the old-est and largest community foundations in the country, and is the only community foundation serving the state of Rhode Island. You may reach Carol at cgolden@rifoundation.org.