Philanthropy Updates

We are in a new age of charitable giving and it is even better than everyone would think.  In 2010, almost $291 billion was donated to charity by individuals, corporations and foundations.  Despite the struggling economy and unemployment hovering over 9% of the population, it is amazing that the increase form 2009 to 2010 was almost 3.8%.  It is even more amazing to learn that 74% of that $291 billion dollars was contributed by individuals and not by the corporations and foundations that we expect.  Despite the economy and the unemployment, this was an increase of individuals giving by 2.7%.  The face of giving has changed not only in how much we give, but also in how we give.  We are not just giving money, but we are also giving our time by volunteering.  Americans are taking philanthropy more seriously and as a result they are spending time making sure that they know about the charity and the causes they serve.

Some of the principals of good practice for engaging in philanthropy are to be aware of a variety of issues to insure that you are giving to the right organization.  Here are some simple tips to take into account when making a charitable gift.

(1) Be careful of sound alike names.  Some charities have strikingly similar names, but their performances may be very different.

(2) You need to investigate the non-profit before you donate.  You need to confirm the charities 501(c)(3) status.  While many of us are tempted to give money to people on the street or in the supermarket, that organization may not qualify as a charitable entity.

(3) Obtain financial records from the charity to learn about their efficiency.  Do they spend 75% of their budget on programs and services and less than 25% on fund raising and administration?

(4) Review the executive compensation.  Charity’s need to pay their leaders a set competitive salary, but is their salary comparable to what the charity is general budget may be or is extremely high in relation to what they are generating annually.

(5) Start a dialog with the charities.  Take some time to find out the charities goals, accomplishments, challenges and where they see themselves in the future.

When many of us decide to make a charitable contribution, that charity is many times not a one time gift and is worth investing some time to make sure it is the right charity for us.  One such charity is Western Michigan University’s school of dance.  To help support his great organization, consider attending the November 4, 2011 dancing with the stars competition at Miller auditorium.  To buy tickets or to obtain more information, you can call 269-387-5830 or go to www.wmich.edu/dance