2nd Week; 2nd Question:
Do you ever give to a charity out of pity, guilt, or from an impulse response to marketing? If so, it must align with your giving goals determined in Question #1. If not, stop. Think it through.
A charity’s promotional material should reach your heart, but not cause you to give just with your heart. Your intellect must be in full gear to avoid scams and manipulation. Stick to your giving goals in Question #1.
As a Charitable Giving Advisor my heart is seared each time I hear a story of what I call, “Donor’s remorse.” A person has given something from their heart – it might be as small as an hour of their time or as big as a large chunk of their earnings – only to find out that it was not used in a way that they would have deemed best. Like “Buyer’s remorse,” they regret their investment and suffer “remorse” at wasting precious resources.
How can we avoid “wasting” our donations?
It seemed that our mother had an insatiable need to host people for a meal. I’m sure that if she could have, every politician, pastor, and social activist alive would have sat at our table enjoying a home-cooked meal on her fine China place-settings while she asked them bold and stirring questions.
I quickly noticed that guests shared more transparently at her dining room table than they had speaking in public. It wasn’t that they were lying, it’s just that, in comparison, their public speaking seemed sanitized. Consequently, my assessments of public speakers became quite critical – and maybe even cynical – before the age of 15!
Few of us have the time, opportunity – or even desire – to search out the uncomfortable answers we really want from charitable organizations before we give resources (funding, time, or expertise).
Whether giving large or small amounts of resources, the following are some things to check before you need to ask any questions at all!
- Does this charity fall in the prevue of your priorities for giving? Is this how you envision “changing the world for the better?” (See Question 1)
- Every cause is “urgent”, but does the charity expect a donation after just one connection? You need some time to figure out who they are. If the charity is unreasonably “pushy”, it could be a scam. Run, don’t walk, away from any perceived manipulation.
- How many expensive marketing streams do you see? Marketing is necessary but too many is too much. Have you been sent a huge envelope of swag? Do they have a lot of commercials or “infomercials” on television? If so, a large percentage of your donation could end up paying for marketing.
- Go to the charity’s web site:
- Look at (or request if needed) the charity’s audited Annual Financial Report. While fundraising and administration costs should be reasonable, don’t obsess over a certain percentage. Use common sense. Some charities need one-on-one counselling; those will have higher staffing costs. Sometimes marketing is hidden in other areas. Check what is important to you.
- Who is on their Board of Trustees or Directors? There should be at least three women and if it’s an international charity, international members. How can a charity do a good job serving without good beneficiary representation on their strategic decision-making Board?
- Look at (or request if needed) the charity’s audited Annual Financial Report. While fundraising and administration costs should be reasonable, don’t obsess over a certain percentage. Use common sense. Some charities need one-on-one counselling; those will have higher staffing costs. Sometimes marketing is hidden in other areas. Check what is important to you.
- Never just rely on charity “watchdog” reports. They sometimes only look at numbers and do not tend to answer the two most basic questions:
- What is it like for a person to receive a service from the charity? “Watchdogs” don’t usually have people on the ground verifying the stories the charity tells. In some other businesses, an organization vying for themselves would be considered a conflict of interest.
- How are fundraisers measured? If they are only measured by the amount of money they bring in, you can expect to be pressured for money. Fundraisers should be measured similarly to wealth advisors; on the relationships found, developed and retained because of the dependability (truthfulness) of their work.
- What is it like for a person to receive a service from the charity? “Watchdogs” don’t usually have people on the ground verifying the stories the charity tells. In some other businesses, an organization vying for themselves would be considered a conflict of interest.
If you have a Charitable Giving or Donor Advisor (like me) available to you, we are an excellent source of information. Good ones are like brokers who can look across the landscape of charities to discern what is available to fit a donor’s intentions. We already know the business of charities, have a network into many of them, and can ask questions objectively to avoid any donor embarrassment. Some belong to the Canadian Association of Gift Planners (CAGP) whose mission is, “to strengthen philanthropy and strategic gift planning.”
Still wondering if you can trust a charity with your resources? Look for next week’s 3rd Week; 3rd Question!
Meanwhile, you might want to consider giving to a local faith-based social services group like: https://penniesandsparrows.org