A Guide to Smart and Impactful Giving

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(This is a follow up to my blog entitled The Joy in Generosity: Giving Can Enrich Your Life)

Giving to charity can boost your happiness. The effect is supported scientific studies that show how acts of generosity positively impacts your well-being. Giving wisely to charity is also important and is about ensuring that your donations have a meaningful impact, align with your values, and are used effectively. Here are some tips to help you make informed charitable contributions:

1.      Identify Your Values and Goals: Reflect on what causes you care about most. Whether it’s poverty relief, education, health, environmental issues, or human rights, know your priorities which will help you focus your giving.

2.      Research: Go to sites like Charity Navigator, GuideStar, or GiveWell to get information on an organization’s financial health, accountability, and transparency. Look for charities that demonstrate measurable, meaningful outcomes, showing that they have a positive impact and use funds efficiently.

3.      The Charity’s Approach: Does the organization work toward long-term solutions rather than temporary fixes? Does the charity use unique methods that make them effective? Does the organization’s approach align with your beliefs on how change should be made?

4.      Financial Transparency: Review the amount of their funds that go to programs versus administrative costs. Many experts suggest that a good benchmark is at least 75% going toward programs. U.S.-based charities file an IRS Form 990 reporting form, which provides financial details. Reviewing it will give you insights into how the charity uses its donations.

5.      Avoid High-Pressure Fundraising Tactics: Reputable charities avoid using pushy methods. High-pressure tactics, excessive gifts in return for donations, or a lack of information on where your money goes can be red flags.

6.      Give Directly: Call the charity, speak with an employee, and make a donation directly to the charity. If available, go to their website to make an online donation directly to the charity.

7.      Volunteer and Be Engaged: Serving as a volunteer will help you understand the organization better. As a supporter, you should be able to see funding in action. Additionally, good charities communicate with donors, sharing impact reports and stories, so you know where your money goes.

These tips can help ensure that your charitable giving is both impactful and personally fulfilling.