I’m a very responsible steward of my money. I never just give someone money without knowing something about the charity, organization, or person I’m giving to. Its the smartest way to give.
Also, I think a lot of people talk about giving but don’t really give. If they do give, its not substantial enough to consider filing on their taxes. The tax benefit of charitable giving is enormous. Its a great strategy to include in your portfolio. I mean, every little bit helps. If everyone gave $5 to a cause, then great. But I’m talking about people who really give. Not just talk about giving.
Quick story, the year when Barack Obama and Joe Biden showed their tax forms the first year of their election, my family gave more to charity than both of them combined. And we’re not rich. We’re not poor but fall in a more average income. And I wouldn’t say we give like Walmart gave $1 million to minority scholarships just the other day. Or a Bill Gates or someone like that. Be we probably give much more than your average person.
So if you give, you want to know that the money you give actually goes to the cause they profess. Many charities and organizations just pad rich fat cats who do nothing for their cause. For instance, consumer reports gave in Nov 2019 their best and worst charities to give to. It is surprising. Like:
Animal welfare – one of the best (PetSmart Charities) – one of the worst (Gentle Giant’s Draft Horse Rescue)
Cancer – one of the best (Cancer Research Institute) – one of the worst (Children’s Leukemia Research Association)
Heath – one of the best (American Kidney Fund) – one of the worst (United Cerebral Palsy)
Likewise, Charity Navigator gives ratings and assessments of various charities. Here are some of the best Black & African American-Focused Charities.
On the other hand, organizations like Black Lives Matter do not have any data supporting their cause. For some reason, people have never really given to this charity despite my seeing so many people telling me to give to them. If it weren’t for a few celebrities giving to them just now, they haven’t been a charity of focus. Its amazing how people jump on bandwagon’s without any deliberation. They just do it. Its not a smart way to live life. I’m not putting them down or saying they are not effective, but there is no proof that I should invest in them. Whereas, there are other causes listed above that would probably be a better place to put your money. Here is all they have for BLM.
People decry the rich and their philanthropy, but that is where most charitable giving happens. Yes, the $5 you give is appreciated and, when crowd sourced, can add up to a lot. But its the big donors where things really happen. And believe me, they study what they are giving to. There is a reason rich people are rich and its not what you think. They actually know how to make money. They also know that charitable giving is good for their company and good for their portfolio. The same is true for individuals. Charitable giving has so many benefits for smart consumers. And the best part, you are doing something good for someone.
Be smart about your money. And do your best to build and grow communities and people.