Giving money to charities and causes

Posted by FrugalPinoy on Aug 17, 2008 in Giving | 4 comments

Recently, a friend and I had a conversation about “giving back” and donations.  We both felt like we weren’t giving enough.  Personally, I donate to an animal shelter as payment of utang na loob for the people who built it – they were good to me in hard times.  But apart from that, I do nothing, even if I really wanted to.  I don’t know if it was the busy-ness of work, but I haven’t thought about volunteering or making additional donations in months.

I also realized that in Frugal Pinoy I often talk about saving and earning money, and never about giving it away.

It’s about time that I did.  Starting next month, I’ll be donating to some causes I believe in (I’ve already included it in the budget), and actively search for volunteering opportunities as well.  However, I won’t be disclosing how much or to what causes I donate to, but I imagine I’ll be able to talk about the volunteering.

Also, if you have your own stories about volunteering or donating, please share them with us.

Why giving back is important to you

People often talk about how giving away donations is good for others, but that’s self-explanatory.  What’s often left out of the discussion is what good  you will get out of giving.

It gives you a feeling of abundance.  I first mentioned this in the post “Do you have what it takes to be a millionaire?”.  From that post:

Some people may have multi-millions, but if they don’t give away a single peso to anyone, for a cause larger than themselves, they probably feel cheap inside. From David Bach’s research, most multi-millionaires have one thing in common: they were giving part of their income for charitable causes, even when they weren’t wealthy yet. It’s all about the mindset rather than just the measurement of how much money you have stashed away in the bank.

It makes you happy.  Scientists found evidence that giving away money gives you more happiness compared to spending it on yourself – even if you believe otherwise.  For me, this is reason enough.  Here’s a quote from that study:

Statistical analyses revealed personal spending had no link with a person’s happiness, while spending on others and charity was significantly related to a boost in happiness.

“Regardless of how much income each person made,” Dunn said, “those who spent money on others reported greater happiness, while those who spent more on themselves did not.”

Now that we’ve looked at the benefits of giving away, it’s time to look at how to go about it…

The process of donating

What issues are important to you?  Before you take out that checkbook, you need to figure out what issues and causes matter to you the most.  Here are some examples: children’s rights, women’s rights, disaster relief in your hometown, education, the environment, health, and poverty.  What do you care about?  Who would you like to help? Make a shortlist of3 to 5 causes that you care about, and find a couple of corresponding organizations or charities for each.  (Click here for a list of charitable institutions that I compiled.)

Is the organization run well? Do a bit of research to see if the organizations you plan to donate to are run well, don’t have anomalous spending, and are trustworthy.  You can do this by interviewing previous or current volunteers/employees of that organization, or by reading old news items about the group.

Aim for the long term. For me, I think I prefer giving to a charity with programs, goals, and projects that have long term effects.  Simply giving away a few coins to a disadvantaged person handing out envelopes in the jeep tends to be short term and trivializes their poverty (similar to the government taking the temporary and easy way by giving cash subsidies to the poor).  However, this doesn’t mean that short term gifts are not appreciated or that they are unhelpful.  But finding a good balance between long term donations and short term donations can give a man a fish and teach him to fish as well, so to speak.

Don’t fall into the trap of “this cause is better than that cause”.  Many people feel guilty that they are not  giving to the “right” cause.   Friends might even say to you “Why are you donating to an environmentalist org when many people are hungry?” or “Why are you donating your books when medicines are needed more?”  After all, starvation is more important than the environment, and medicine is more important than education… or is it?

For me, each cause is important in its own way.  Don’t judge the cause selected by others and don’t be insecure about the causes you choose, as long as you believe in them.

Don’t limit yourself to charity organizations.  You can help individual people in the long term.  For example, by paying for the college education of a tricycle driver’s daughter, giving a free livelihood workshop in an impoverished area, or by donating books the local public school.

If you really don’t have money to donate, lend your time and presence instead.   If you really just earn enough for your living expenses, volunteering is a good alternative.  It’s also a welcome addition, if you’re already donating money.  One of my personal goals is to spend some time physically helping out in a cause, not just writing checks. Not only are you helping others, but you are also enriching your own experiences.

Do you donate your time or money to charitable institutions or those in need?  How do you do it?