3 Key Considerations for Last Minute Donors

A last-minute post for last-minute donors.  Whether you're seeking the tax break and the receipt for the year that is ending, or just trying to finish 2012 on a positive note, it's not too late to give. It's also not too late to give wisely.  Here are three key considerations before you make your year end gift.

1. PASSION
   Is this a cause you care passionately about? Has this organization touched your life or helped others you love? Is this a cause you truly believe needs your help?  Sometimes we're swayed by a powerful image, or a great charity marketing campaign, but that impulsive decision may not be the one that will bring you the most happiness. So while making a gift is better than none at all, consider if there isn't a better "fit" for your generousity.
2. RESEARCH
   What other organizations focus on the area(s) you're most passionate about? Is there a better fit, or more direct way, for your gift to work? Websites like Charity Navigator (focused on the USA) or Charity Intelligence (Canadian but with a much smaller database) can be a big help on this front. Even a quick review of these sites may provide you with new insights about how best to direct your charity giving.
3. IMPACT
   Most charities are very efficient with your donated money, but does your intended target really need your gift? How many years of operating funds does the organization have in reserve? More than just cost per dollar raised (e.g. cost of fundraising), it's important to know if you're getting real impact for every dollar donated. For example, if your charity helps students, has their cost per student been going up or going down over the last few years? And if the answer is up, have they been offering new and enhanced programs... Or are their costs going up at a rate faster than inflation? 

My point is that, as I've said before, giving from your heart and from your head is important. Even if you're making a last minute donation, there is still time to do it right! 

Giving to the Charitable World: With your Heart and your Head

The topic of how best to have real impact in the charitable world came up in a conference last weekend. Obviously one way to make a positive difference in the world (charitable and otherwise), is to work in the sector. That’s what I chose, but years ago as I researched my options I got some advice that has stuck with me: you don’t have to work in a charity to make a difference for a charity.

So if you're not going to work in the sector how might you have your impact?

One great way to do that is to make a gift. You can give your time (volunteer), your talent (sit on a Board or do something related to your skills), or your "treasure" (making a monetary or in-kind gift). Millions of Canadians give very generously every year, and lives are transformed and saved through their kindness and spirit.

It’s usually our hearts that compel us to give, but I’d like to suggest that giving with your head is pretty smart too. Assuming you’ve found a charity that inspires your heart, here are three ways you can help ensure your gift is given with some forethought that you may not have thought about.

1. Some charities need your gift more than others do. If you've got a few charities that might make your giving list, consider how much “surplus” each organization has generated in the previous few years. How much of a "reserve" do they have? You want some money for the lean times, but could they keep operating for years without your gift? Ask for each charities’ Audited Annual Financial Report – particularly if an abbreviated version isn't on-line.
2. Dig deeper than just the numbers. Despite the first point, you’ll also want to understand a bit about how funds that are raised are used: do they offer robust, impactful programs and activities? Just knowing that a charity doesn't spend much on fundraising or operational costs actually tells you very little. A youth centre can show very low costs if they’re only open one day a week and have little to offer the youth they serve, but then would you really want to support such a meagre program?
3. Lastly, get really close to your short-list of charities. Maybe you want to make a "trial gift", of a smaller amount to see how they respond. Or better yet, volunteer and spend some time at your top charities. Which one do you really like now that you know it better? And best yet, your gift will be that much more valuable to you once you know the people and programs you’ll be helping!

Happy giving! From the heart and the head.