How Many $$$ Do You Donate To Charities Each Year???

[Watermelon Man]

I read on another thread "If you won $5m in Powerball, what would you do with it?" that except for about 3 people; all others said that they would ultimately spend the money on themselves. Don't people think of others less fortunate than themselves.

I mean C'mon - $5 MILLION DOLLARS - What you can't spend at least 10% of that to donate to worthwhile charities - I mean even if you reinvested the money & donated the interest!!

I donate around $250 per year; this year I'm working on donating around $500. What do others give?

Hmmm... very interesting!

 

[lizzie]

around $500-1000 ... nowhere near enough

 

[masterjunko]

Only ~$100. I really should be donating more...

 

[The Y-man]

I think the thought of using money for charitable means is an excellent one, and the ideas people have are to be applauded.

The biggest issue I have however, is that I believe for a charity to truly be effective, it must in some way sustain itself (eg through investment income, op shop etc).

Most people stop at the "set up" point, and do not consider the costs of running the establishment (hopefully) for ever. For example, it is all well that you might set up a shelter, but how disappointed/angry will those (be it people, dogs whatever) sheltered be if you need to take it away a year later as you can not fund it?

In the example above, investing the $5mill and donating the interest is sustainable and a great idea.

The other issue is growth and scalability. I believe any charity should also have a mandate to grow - i.e. service more and more - either bigger in one place, or in more locations. For this to happen, the invested amount must grow.

Again, going back to the $5mill example, you would want to retain part of the interest to grow the capital (or at least keep up with inflation).

IMHO, one of the best things you can do for charity on a personal basis, is to become GREAT at investing, so you can serve those in need, because it is your knowledge that is going to help them. So instead of just 6% pa, imagine if with your guidance, that $5mill could generate 20% pa, and you used half of that to run the organization, and reinvested the other half back into the fund.

As to the actual mechanics of this, my understanding is that you would in fact set up a Private Charitable Trust into which you will gift the money (i.e. you can't withdraw!).


Keep in mind also that it is not all about money either. It would be great if people could get to financial freedom so that instead of having to turn up at work to pay their bills, they could afford to turn up to (unpaid) work to help others.


Cheers,

The Y-man

 

[The Y-man]

I know many people will have the image of "donating to charity" as a "putting the money in the tin" thing for a cause.

Please remember that your time is important as well. Your knowledge and expertise can be worth hundreds of dollars, and you may not know it.

For example, I am involved with mentoring students at my old high school, as well as the careers nights (I probably upest the parents by saying wierd things....). If the school had to pay for professionals of various fields to come in and do this, it would cost thousands (my time is worth quite a few $ per hour )

Cheers,

The Y-man

 

[ok180]

Nothing.

Im not going to solve the worlds problems by going around like Santa Claus.

 

[Peter Parker]

The other issue is growth and scalability. I believe any charity should also have a mandate to grow - i.e. service more and more - either bigger in one place, or in more locations. For this to happen, the invested amount must grow.

I'd have thought that the ultimate aim of any charity should be to further its objectives so effectively that it renders itself redundant!

Peter

 

[Mr. Fabulous]

I dunno - I don't keep tabs. Most of my charity goes to buying The Big Issue from vendors and I give money to Youth Off The Streets as well. Homeless people, particularly homeless kids is my big passion.

Mark

 

[deanthomas]

10k last year, I'll try again for the same or more this year.

Cheers Dean

 

[Watermelon Man]

For example, I am involved with mentoring students at my old high school, as well as the careers nights (I probably upest the parents by saying wierd things....). If the school had to pay for professionals of various fields to come in and do this, it would cost thousands (my time is worth quite a few $ per hour )

Congratulations on your terrific work!!! I applaud you!

An excellent post! i agree with what you have said - imagine being able to do both - having the financial freedom (as in the above scenario) to physically be there to help those in need; as well as having a regenerating income from investing solely on assisting with worthwhile charitable organisations.

 

[Watermelon Man]

10k last year, I'll try again for the same or more this year.

WOW! THAT'S FANTASTIC! GOOD ON YOU!

 

[Jase H]

10k last year, I'll try again for the same or more this year.

Cheers Dean

Dean,

well done mate. that's great.

I only donate a little over $700 per year currently but plan to increase each year.

Jase

 

[Jase H]

I know many people will have the image of "donating to charity" as a "putting the money in the tin" thing for a cause.

Please remember that your time is important as well. Your knowledge and expertise can be worth hundreds of dollars, and you may not know it.

For example, I am involved with mentoring students at my old high school, as well as the careers nights (I probably upest the parents by saying wierd things....). If the school had to pay for professionals of various fields to come in and do this, it would cost thousands (my time is worth quite a few $ per hour )

Cheers,

The Y-man

Y-Man,

You make a great point re. peoples time. Good on you mate! I think it is far easy to give money than a lot of time so you have my vote! Well done.

Jase

 

[Jase H]

I think the thought of using money for charitable means is an excellent one, and the ideas people have are to be applauded.

The biggest issue I have however, is that I believe for a charity to truly be effective, it must in some way sustain itself (eg through investment income, op shop etc).

Most people stop at the "set up" point, and do not consider the costs of running the establishment (hopefully) for ever. For example, it is all well that you might set up a shelter, but how disappointed/angry will those (be it people, dogs whatever) sheltered be if you need to take it away a year later as you can not fund it?

In the example above, investing the $5mill and donating the interest is sustainable and a great idea.

The other issue is growth and scalability. I believe any charity should also have a mandate to grow - i.e. service more and more - either bigger in one place, or in more locations. For this to happen, the invested amount must grow.

Again, going back to the $5mill example, you would want to retain part of the interest to grow the capital (or at least keep up with inflation).

IMHO, one of the best things you can do for charity on a personal basis, is to become GREAT at investing, so you can serve those in need, because it is your knowledge that is going to help them. So instead of just 6% pa, imagine if with your guidance, that $5mill could generate 20% pa, and you used half of that to run the organization, and reinvested the other half back into the fund.

As to the actual mechanics of this, my understanding is that you would in fact set up a Private Charitable Trust into which you will gift the money (i.e. you can't withdraw!).


Keep in mind also that it is not all about money either. It would be great if people could get to financial freedom so that instead of having to turn up at work to pay their bills, they could afford to turn up to (unpaid) work to help others.


Cheers,

The Y-man

Y-man,

Another great post. John Fitzgerald who wrote the seven steps to wealth is a great advocate of successful investors needing to be 'wealth custodians'. I think this is spot on and he basically uses his successful and growing investments to fund various schools which he has set up. There will always be money to grow such a charity and the great work it can do.

I would like to be able to do some similar such as projects related to animals in need as well as under privledged kids from less well off countries.

The mother of all charities appears to be the Gates Foundation which will be self sustaining and able to achieve incredible feats well into the future.


Jase

 

[geoffw]

Sponsor a child through World Vision.

That gives our kids something to see as well, giving, as well as a view of the recipient's world.

 

[rexilla99]

same here sponsor a kid through world vision as well.

Have seen the child grow from a baby in her mothers arms to a 4 year old walking.

Still gotta pay the mortgages when I make a bit more $$$ I will donate more.

 

[sunshine]

Our Policy is to help a person or family direct rather than an organisation. We don't like seeing part of our funds go to admin costs or be put in a "fund" for later use. So we like to ask around, or put out "feelers" for people in need.

Last year we "gave back" about $5000 and it felt great to be able to help.

We helped farmers have a better Christmas, they had struggled financially due to illness and death, on top of the drought. Still makes me cry!

We donated show bags to a childrens charity - nothing beats a childs face light up when given a show bag!

A few others but you get the point.

We know we have done well and are extremely grateful, and part of the cycle of receving is giving back - so we try to do that as much as possible.

sunshine

 

[topcropper]

Probably donate a few hundred bucks a year. Just gave $100 to cancer research, and was part of a team of 20 that raised $5000 for cancer research in a 'Relay for life' fundraiser.

I now DON"T donate anything to an organisation who rings me up asking for more. It drives me crazy. So that has ment I don't donate to lots now.



This may sound very harsh, but I also don't donate to overseas causes where the main problem is overpopulation.

We are always being told that education will make people have less kids. Well, that's just crap. You don't have to go to school for 10 years to know that having 13 kids is not smart. Africa and parts of Asia are overpopulated due to religion, stupid tradition, and the degrading of women. Instead of sending over food, we should send over a boat load of condoms, or 'the pill'. Or train doctors so the men can get 'the snip'.

One thing is certain. There is a massive human disaster looming in Africa, Moslem nations and other parts, and while the population continues to grow, the consequences will just get worse when the bust happens.

Sorry about that one.

See ya's.

 

[caz]

We donate more then we spend on clothes for DH. May not be a huge amount but it is a lot for us as we are only starting out.

 

[tobe]

I tithe 1% of my gross income each year, when I do my tax return. I give it to the Quakers, or religious society of friends, who I am confident of in the funds recieved actually getting to the people in need.