The effects of the tsunami that devastated many countries bordering the Indian Ocean brought home the impacts of immediate need and questions about charitable giving. While we continue to witness televised shows that broadcast the visual reality of suffering and loss, many of us also understand that other people throughout the world also need our help. We often give with our hearts, but later we might wonder if we used our heads. How can we manage our giving so that we can help others without hurting ourselves?

Donations, rather than volunteerism, might take top priority in our lives, because monetary gifts seem - in the long run - to require no more effort than an eye to rebalancing our budgets. Also, since time spent away from responsibilities of family and work is a luxury for many of us, money replaces our willingness to provide relief for others. Some of us give to associations or organizations that mean something to us personally. For instance, many nonprofit organizations receive benefits for disease research when cancer, AIDS, or heart problems steal a loved one from us. Others give to foundations that help children, or to other groups that help the homeless. Others give to the arts or to environmental concerns.

Within one day a week after the tsunami, I encountered almost twenty-five organizations that asked for money to help the disaster victims. While this experience revealed how many organizations were willing to help, it also raised a few questions. First, I was curious as to why I preferred one group to another, and why I was willing to give to any organization without any prior knowledge of their activities. I also wondered which organization would really use my money the way I envisioned. Also, I pondered how to provide the biggest bang for my limited charitable bucks.

The groups that garnered my attention for tsunami relief were, simply, those that asked for my money through television and radio ads, and through phone calls (unsolicited telemarketing calls for donations aren't barred from the "do not call" list). While many organizational names were familiar, I normally pay little attention to their work or to their budgets. This realization helped me understand that I'm a soft touch when it comes to suffering?I want, like most people, to help relieve pain and suffering. But, my need to give overshadows my intellect. In other words, I think before I act when I see suffering. Fortunately, too many people asked for money at a time when my discretionary cash was depleted, so I had space to consider where my money would go.

I turned to the Internet to research these groups (links to websites are listed at the end of this article). At these sites, I was able to analyze an organization's intent, its financial details, and its successes. In some cases, I found that many of these groups were soliciting donations when they were already flush with recent corporate funding; so, many groups were soliciting cash when they really didn't need my small pittance. On the other hand, I discovered that many groups funnel money into channels other than direct relief for victims, like into fundraising efforts, salaries, and advertising.

I finally narrowed my search to two foundations that I felt were worthy of my limited financial help. Then, as I rebalanced my budget, I wondered how I could increase the impact of my meager offering. I called a few friends and acquaintances to tell them about my effort and then I asked them to donate. One person offered double what I could afford, and this person initially wasn't going to donate anything because they "just forgot." I reminded another person that tax time was coming around soon, and since I knew that this person itemized her deductions, I asked if she'd met her charitable giving ceiling. "No!" she replied, and she thanked me for reminding her about the tax benefits of charitable giving.

When you give, keep a record of this transaction, whether it's a credit-card receipt or a written receipt for a donation of more than $250. Also, if you give more than $500, you'll need to file an extra form with your tax return. The IRS can also help limit your choices with a list of tax-deductible nonprofit organizations. Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986, is updated through June 2004 at http://www.irs.gov/charities/article/0,,id=96136,00.html.

For further research:

Guidestar - This is a national database of nonprofit organizations, where you can also find information about a group's financials and tax return information.

The American Institute of Philanthropy - this site maintains a watchdog service whose purpose is to help donors make informed giving decisions.

Charity Navigator - "Your guide to intelligent giving." This is another site to assess and monitor your nonprofit choice. You can also create a "charity portfolio" here, where you can keep tabs of your giving. This is a great way to know when you either haven't given enough or if you've given way too much.

The Better Business Bureau Wise Giving Alliance at Give.org - this site looks at nonprofit financials and governance issues.

If you want to give locally, your Chamber of Commerce will have a list of most - if not all - of the nonprofit organizations in your neighborhood; however, they may not carry information on the efficiency or success of these groups. If the nonprofit organization is located just around the corner, you might stop in and ask for their annual report and to speak with a few volunteers. But, beware?you might find time to help once you hear their first-hand pleas for more helping hands?

While we might cringe at our woeful inability to offer relief to sufferers, we can sleep at night with the knowledge that we've given our utmost. This means giving our money or time, but also giving with our hearts and our minds. The time we use in research about nonprofit organizations can help us leverage our giving and, ultimately, will benefit those who most need our help.

Until Next Week,
Linda Goin