Despite the tragic losses of this past year, recent COVID-19 aid efforts and racial justice developments have spurred new movements of generosity across the world. From small checks to large grants, individuals, foundations, and communities are gifting their resources and money to serve those in need. News outlets and social media feeds are filled with lists of causes and organizations to donate to, and you might be wondering how you can contribute.
Although we might not have much, we can be strategic with what we do have to give and consider best practices for the future. How can we donate most responsibly and effectively? Here are a few tips to guide your personal charitable giving.
Where to Donate
When determining which organizations to support, consider concentrating your efforts on a smaller number of causes. Donating to a fewer number of organizations will allow you to give more significant sums, minimize money spent on transaction costs, and establish more personal relationships with the organizations and communities served.
Consider prioritizing donations to local nonprofits and small businesses, organizations which may lack the widespread support of national organizations, especially in times of crisis. Giving locally will also allow you to better assess and experience immediate impact, as well as provide opportunities for personal volunteering and relationship-building with those in your community. You might also look for mutual aid networks in your area, which provide similar opportunities for engagement and are increasingly common during COVID-19 relief efforts.
Also consider prioritizing donations to organizations led by people of color. Recent research highlights how nonprofits led by Black and Latino directors suffer from significantly lower funding than those with white leaders, even when accounting for factors like issue area and education levels. One way we can help build a more just and equitable society is by engaging proactively to support more leaders of color.
Before donating to a nonprofit, look into the organization’s 501(c)(3) status, mission, and history. Reviewing this information will help ensure that your money will be used for a cause you support and will help prevent scams and fraudulent practices, which are even more common during times of crisis. Sites like Charity Navigator and Candid are particularly helpful, providing financial health and accountability and transparency analyses for thousands of charities. You’ll be able to review how well organizations have sustained their work over time and their level of commitment to ethical practices. (Similar caution should be used when donating to crowdfunding campaigns.)
Ways to Donate
Consider maximizing your impact by pooling your gift with others through a community foundation fund or giving circle. Community funds will help localize your efforts to serve the needs of the community where the foundation is based through larger, strategic grants to specific nonprofits and charities. The Council on Foundations offers a helpful map for finding a community foundation near you.
Giving circles can be similarly organized or informally established, with members coming together to regularly discuss and determine which organizations to collectively donate to. These circles are helpful in encouraging more regular and strategic giving, as well as increasing collective interest in a cause and the likelihood of members also volunteering time and other resources together.
Giving in Times of Crisis
While establishing personal relationships with nonprofits and charities is a key component of effective engagement, monetary donations are often more effective than personal volunteering during times of crisis. In particular, unrestricted gifts (donations without stipulations) give organizations the flexibility to respond quickly to immediate and unique needs.
As the situation evolves, however, consider investing in more long-term recovery work, assessing how needs have changed and what efforts need ongoing support. Many organizations see increased support at the onset of a crisis, but recovery generally requires months or years of sustained aid. With a pandemic of this magnitude, nonprofits and small businesses are facing enormous financial pressure and an increasing demand from vulnerable populations.
Non-Financial Giving
As we continue in generosity, let’s not forget that our support does not have to be limited to financial giving. We might look for ways to volunteer our time and other resources, letting our financial giving pave the way for stronger relationships with our communities, greater empathy for others, and deeper investment into causes that matter.
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