CHARITABLE
CONTRIBUTIONS
VOCAB
 Charitable
Giving – the act of
giving to charitable
organizations or those in need
 Costs/Benefits Analysis – a
tool used to choose among
alternatives involving weighing
the costs of a product or service
against the benefit it will
provide
 Gifts
in-kind – a non-cash
contribution to a charitable
organization which can be given a
cash value
 Nonprofit Organization – a legal
organization providing services or
activities without commercial or
monetary gain; organized for
purposes other than earning a profit
 Tax deduction – an expense that a
taxpayer can subtract from taxable
income
CHARITABLE CONTRIBUTIONS
Come
in all sizes and types, from
people of all income levels.
It is rather simple; you can give
something of value to an
organization that provides
services to other people for little
or no cost or you may decide to do
something nice for someone who
needs help.
 Andrew
Carnegie, one of
the most famous
American philanthropists,
donated funds for
libraries across our
country; in 1889, he wrote
an essay about what
wealthy people should do
with their money, saying
that people have a moral
obligation to give to
others during their
lifetime.
Monetary
gifts can range from a
few dollars to billions of dollars.
Donating time is a common form of
charitable giving.
In
fact, Oklahomans provide
thousands of hours of their time to
various organizations; people in the
US give away the largest percentage
of personal income and have the
largest percentage of volunteers
compared to other countries.
Making
an In-kind contribution
means donating a non-cash item
that has value to the receiving
organization.
For many people, involvement
in faith-based organizations is
their primary source of
charitable giving.
WHAT CAN YOU DO?
Organization
Type of Contribution
WHY DO PEOPLE GIVE?
The
reasons that people give
are as varied as the
opportunities to give
 support
the mission or purpose
of the organization
 believe the organization is
doing good work
 show their support, it makes
them feel good to help others
COSTS AND BENEFITS
Cash
donations should be a part
of your spending plan.
When built into your budget,
they become a part of your
regular monthly expenses.
If you do not plan, charitable
contributions can become an
emotional or impulsive decision
and have a negative impact on
your personal finances.
Giving
away money or other resources
to an organization is a cost because
those resources are no longer available
to you; they are a benefit to the
organizations receiving them.
The benefits that you receive can
outweigh the cost – many people enjoy
the feeling of helping others and you
may be able to deduct (subtract)
certain charitable contributions from
your personal income taxes (check the
criteria on the IRS website)
Charitable
organizations are an
important part of our society, and
being involved is a great way to
contribute to their mission.
Giving can make you feel better about
yourself, make you feel like you are a
part of a bigger purpose, satisfy your
need to give back to the community,
and is a great addition to a college
application
CHECKING OUT
CHARITABLE GROUPS
HONORABLE INTENTIONS
While
people who donate have
honorable intentions, not all
charitable organizations are
well managed or use the funds
as promised.
Some
organizations hire
expensive fundraising businesses
to raise money for them; those
businesses receive a portion of the
money;
 Some spend the majority of the
money on administrative
expenses and big salaries
Make
sure that you are donating to
a reputable charity and not just a
good “cause”.
According to the Institute for
Philanthropy, a good organization
will spend at least 60% of the
money raised to support its
programs.
Smart givers find out as much
information as possible before
contributing!
Evaluating
a charitable
organization can be difficult.
Not a business – non-profits
which means they exist to
provide services or activities, not
to make a profit.
Consider
Do
–
you understand the organization’s
purpose and the programs it provides?
Do you know why this organization is
needed?
Can you explain the organization’s
short-term and long-term goals?
Do you know how it’s progressing
toward these goals?
Does the information from the
organization make sense to you?
Can someone answer your questions?
TIPS
Avoid responding to telemarketers
soliciting money
Never respond to e-mails asking for
money
Beware of “sound alike” names
Avoid putting change in cans by the
cash register
Check them out – www.guidestar.org;
www.charitywatch.org;
www.charitynavigator.org

VOLUNTEERING YOUR TIME
One
of the most valuable
contributions you can make is
your time.
Because most nonprofit or
charitable organizations have
limited funding and small staffs,
they rely on volunteers to help
get the work done.
If
you would like to volunteer, you
should first identify what organizations
best fit your interests and your needs.
Next, call the organizations to see if
they are looking for volunteers and what
kinds of tasks need to be done.
You will probably have an interview
with the volunteer coordinator; as part
of the interview, ask questions about the
organization to ensure that you
understand exactly what they do and
what you will be doing.
Before
accepting a volunteer
position, be realistic about what you
can do and the hours you can work.
They are relying on you to do what
you say you will do when you say
you will do it.
Showing up late, missing deadlines,
and canceling at the last minute
shows a lack of respect for the
organization.
MAKING AN INFORMED
CHOICE ABOUT
CHARITABLE
ORGANIZATIONS
PACED
Problem
 Alternatives
 Criteria
 Evaluate
 Decide

PACED
What is the PROBLEM you
want to take on? What purpose
do you want to serve?
What are the
ALTERNATIVES? What
groups are available in your
area that will help you
accomplish your goal?

What CRITERIA is important
to you? Do you want to work
after school? Work on
weekends? Indoors or outdoors?
EVALUATE your alternatives.
DECIDE what you want to do.
Are you happy with your
choice?
