When we’re considering donating funds, we start with three simple concepts.

Over the last 25 years we’ve been involved with hundreds of non-profits. We’ve seen incredible results from organizations with tiny budgets. We’ve also seen colossal waste and criminal mismanagement from organizations that hide major problems from donors. We mostly consider need, impact, and connection when deciding.

Need

Does this need outweigh the other needs you are considering donating to? You have limited funds to donate, and every time you say “yes” it means you are also saying “no” to the other needs out there. We often phrase this concept as a question, “Is there something else more important?” Or, “Is this the best use of our donated dollars?”

Need is somewhat subjective. You may consider a need important that others would never consider important. For example, we do not give funds to animal-related causes. Why? We believe humans are more important and the need in humanitarian efforts is greater. You may have a different viewpoint - and that’s ok. If your donation helped keep a puppy warm tonight, thank you!

Impact

Does this organization have a history of making a difference? You’ve likely heard the stories of non-profits that use 90% of donated funds for administration and marketing, while only 10% goes to the actual project. Unfortunately, those same organizations are experts at pulling on heart strings and raking in the donations from people with big hearts.

For larger, established organizations you can check the IRS charity database or a charity rating site.

For local, or new organizations you’ll need to rely on reputation or personal experience. Be especially cautious giving to newer non-profits. Many charities are started by someone with a big heart, and small experience running an organization. Helping people and managing finances are two completely separate skill-sets. I’ve seen many charities close their doors quietly because the director lacked these skills.

Connection

When a natural disaster strikes, who are the most likely to help? The neighbors of those affected. We give more when we feel more connected. Our family tends to give more dollars locally.

We should all be aware of the relationship between giving and connection for two reasons.

  1. Increasing your connection with a cause will help you assess the need and impact more clearly. You’ll feel better about giving when you are more informed or can see results personally. Get involved however you can!

  2. Creating an emotional connection is a technique used by illegitimate charities to scam kind-hearted people. These “charities” will use sad stories to tug on heart strings, and people will make an emotional decision to give immediately.

Frequently Asked Questions

  • Maybe? When choosing where to give, we consider the need, impact, and our connection to the cause. We love hearing about the good things people are doing, so feel free to contact us!

  • No regrets. We have given to some organizations that weren’t completely honest. But, we have to remember that it was a gift, given with no strings attached. We have no control over what people do with our gifts. We let it go.

  • A percentage of your paycheck? A yearly amount? Nothing, because you are in debt?

    This is a very intimate question. I don’t believe anyone can answer it for you. Three things to consider:

    1) You can’t meet a goal you haven’t set.

    2) Good people do good things.

    3) Give until it costs you something.