Barry Glassman
WTOP Finance Contributor
WASHINGTON — As you do your holiday shopping in the next few weeks, you’ll hear a familiar
ringing sound. For many, the Salvation Army’s bell is a reminder to give to others in need, especially
during the holidays. For me, the bell’s iconic toll makes me reflect on the impact I have had on the
causes I care about most.
In working with clients over the years, I have found that those who give their time and treasure to a
cause they care deeply about are more fulfilled. Perhaps it’s because the simple act of helping others
amplifies a greater purpose in all of us.
There are many deserving organizations doing great things, but before I go into the details of finding
great charities to which you can donate, I want to spend some time on the trend of targeting your
donation dollars.
Should You Target Your Donation Dollars?
We have more control over how our ‘charity of choice’ uses our donation. For example, it’s become
very popular to stipulate that your dollars go toward the charity’s programs rather than overhead and
marketing. After all, most would rather feed more people or pay for more cancer research than support
the staff’s salaries.
But overhead isn’t always a bad thing to support. Dan Pallotta, an activist and fundraiser, says the way
we think about charity is undermining what we want to accomplish. In his 2013 TED Talk, “The Way We Think About Charity is Dead Wrong,” Pallotta points out that charitable
organizations simply can’t compete against the private sector for top talent because they’re not able to
offer competitive salaries to attract and retain them.
They are often penalized for having large marketing budgets, even when these efforts result in even
greater giving. He believes that we have to start rewarding charitable organizations for their big goals
and big accomplishments if we want to see big changes in our world’s most daunting issues.
I’ve been involved with The National Brain Tumor Society
(NBTS) for over 20 years. When someone
receives the devastating news that they have a brain tumor, his world is turned upside down. When a
patient contacts NBTS, he is connected with a counselor who understands the fear, anger and confusion
the patient is going through.
These amazing people are there to help each patient sort through his emotions, understand his
treatment options and provide support for the patient and his family every step of the way. The salaries
and other expenses for the counselors fall under NBTS’s administration costs, but I think we all agree
that the counselors have an enormous impact on those the organization serves.
The moral here is that while we all want charities to use our money wisely, perhaps we should place
more emphasis on the outcomes they are having rather than on the amount of their overhead.
Choose a Charity that Aligns with Your Values
We all have reasons that we give, and if you have a deeper connection to a cause, chances are that you
will have a greater impact. If you’re not sure about how to find reputable charities or you want to
research a charity before giving to them, a great place to start is CharityNavigator.org.
This is a fantastic one-stop resource to learn more about all types of 501(c) (3) charities. The website
scores charitable organizations and awards stars based on their financial health and transparency and
accountability, as compared to others with similar causes.
The site provides information about the charity’s mission and financial statements, and suggests other
highly-rated charities doing similar work. You can also compare several charities before making your
decision.
Give local:
If you want to make a difference in your community, consider giving to your community foundation.
These organizations know the local charities and the critical needs in your community. Many community
foundations fund several charitable initiatives each year with programs that serve children, veterans, the
homeless and the aging in their communities.
Donations can be earmarked for specific charities that the community foundation supports.
Community foundations also initiate Giving Circles, such as the Business Women’s Giving Circle,
established by the Community Foundation for Northern Virginia. The mission of the women who
belong to this giving circle is to empower women and girls of all ages to innovate, lead and succeed.
Giving Circles are also a great way to connect with others who share your passion on a more personal
level. To find a community foundation near you, use this Community Foundation
Locator.
Consider Crowdsourcing
At a recent conference, I learned first-hand about the enormous impact that crowdsourcing can have
when someone takes a problem and invites the world to help solve it.
Here’s one example: Charles Best was a teacher who decided to take a lunch-time conversation with his
fellow teachers about all the books and supplies they needed and put those requests on the internet.
Since founding DonorsChoose.org in 2000, the impact
the organization has had on teachers, students
and schools is nothing short of astounding.
It has raised more than $285 million and funded more than 520,000 projects affecting 13 million
students in 60,000 schools. This short video explains why Oprah Winfrey and Michelle Obama support
the efforts of DonorsChoose.org.
—
Giving back has been a big part of my life since I was in high school, so this is a good way to wrap up
my “Best practices for living a healthy financial life” series. Whether you choose to have an immediate
effect on an issue — such as funding a class field trip, donating to long-term challenges like finding a
cure for cancer, or volunteering at your local food bank — you and your family will change lives for the
better.
If you missed the other segments, I encourage you to read the “Best practices for a
healthy financial life” articles:
- Getting started
- Creating your personal financial plan
- Sharing your risk
- Be a good financial role model
Editor’s Note: Barry Glassman, CFP®, founder and president of Glassman Wealth Services in McLean,
Va.,
is a
nationally recognized leader in investment and wealth management. His fee-only
firm offers successful professionals, executives and business owners financial
guidance and resources to effectively manage their family’s wealth. Follow
Barry
on Twitter at @BarryGlassman.
Follow @WTOP and @WTOPliving on Twitter.
