Philanthropy is the act of donating money, goods, time or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective. In a more fundamental sense, philanthropy may encompass any humane activity, which is intended to promote good or improve human quality of life.
Giving back should always be a part of your overall financial plan. In addition to tax and other monetary benefits, you become a part of something much larger than yourself. Your efforts help to influence a positive change, which will ultimately make the world around you better.
Here are some tips to help you with your giving:
- Be when you give. Seek out organizations that support causes that are important to you and your family;
- Avoid the middleman. Many of the charitable telemarketing campaigns keep anywhere from 25 to 95 percent of what you don't. Instead, avoid that firm and contact the organization directly to make your donations;
- Confirm the 501(c) 3 Status. Many organizations are not truly a 501(c) 3 organization, which means, you could forfeit your rights to deduct donations from your taxes;
- Determine if the Charities Commitment to Donor's Rights. Determine if you can help influence the direction of the organization with your donations;
- View the Charities Financial Records to determine their level of fiscal responsibility and to determine if they are doing what they said they would;
- Review Executive Compensation to ensure it is in line with industry standards and to the organization is paying for good results;
- Share in the long-term commitment of the organization. Don't be a silent giver. Be a part of the organization to ensure you are comfortable with where it is going.
What do most all of America's Wealthy have in common? They are givers! And for good reason too. There is a strong correlation between giving and receiving. If you want to earn more, you should first give more. Thus, the old adage is true, that you reap what you sow.