It is more difficult to give money away intelligently than to earn it in the first place. – Andrew Carnegie
The next time you want to send a text message from your smartphone donating $2 to disaster relief, think again. Unfortunately, not all of that money will go to helping the victims. In 2011, Americans donated $200 billion to about 1 million charity organizations. When picking a charity to send your donation to, you have to do your homework. Here is a quick guide to some secrets that charities might not always be willing to share.
1. Is it a registered charity?
Some charities operate without any paid employees, and so they do not have to be registered as a charity. The limit they declare is usually below $50,000 annually. But all the other charities who claim to be registered should be checked out by consulting the list at the Internal Revenue Service (IRS). This is important because of the tax deductions available. It will also ensure that you will not give to those charities who are flying under the government’s radar. In the UK, the Charity Commission is the government’s regulator on charities.Advertising
2. How much is spent on overhead
Each charity will have enormous overhead costs regarding staffing, running costs, and fundraising. Inevitably, a part of your donation will go towards these costs. A good rule of thumb is that 60-75% of donations should go to the actual cause and 25-40% towards administrative expenses. But some charities cut back on expenses, which leads to more waste. Check to see if this information is available on the charity’s website before making a donation.
3. Beware of phone calls
Some charities use companies who are for-profit fundraisers and they use telemarketing extensively. Because of the costs involved, it is unlikely that the charity will receive more than 10% of the amount you pledge.
4. Some charities pay enormous salaries to their CEOs
Major charities have to be run as businesses. But disturbing news often comes to light about how much they are spending on salaries and bonuses. Sometimes, funds raised actually go to the charity’s pension funds, rather than to the poor, sick and needy. This information is rarely revealed. Charities defend paying high salaries to executives because they are in demanding roles, and clever fundraising policies have to be thought out and implemented. The site Charity Navigator believes that salaries around the $1 million mark are unacceptable.Advertising
5. Think carefully about donating to short mission trips
These short mission trips to help build houses, schools and orphanages in third world countries seem to do more good for the volunteers, than the poor people. Think about these facts, before donating:
- Many trips cost as much as $30,000 to sponsor.
- Such large sums could actually be used locally to give employment to builders and workers in the country who desperately need money to buy food. Unemployment in these countries can be as high as 30%.
- Volunteers can send the wrong messages in that they know better, can do the work faster and they do not train the people there to deal with their problems in the long term.
Organizers of short term mission trips should focus more on the permanent impact, and how locals can be more actively involved after the volunteers have left. Ask if they are approaching the mission in this way before deciding whether to donate or not.
6. The good, the bad and the ugly about celebrity charities
When you think about Bob Geldof and Bono, who have supported enormously successful charities to fight world hunger and poverty, you can have nothing about admiration for them.Advertising
But some of these celebrity charities have made zero impact when auditors revealed that considerable funds were missing or unaccounted for. This was the case with Madonna. She was going to build a girls’ school in Malawi. Auditors revealed that almost $4 million went missing from the charity’s funds. Madonna is now contributing $11 million she has raised into Malawi-based organizations to help them build the schools that are needed.
Wyclef Jean, the hip hop icon, founded the Yéle Haiti Foundation after the disastrous earthquake in Haiti, which killed up to 300,000 people in 2010. He is now facing lawsuits about tax fraud and whether he gained financially from the charity he set up.
7. Beware of fundraisers in the mall
How many times have you been approached in the mall or on the street by a fast-talking and convincing fundraiser for a very worthy charity? This is a bit more sophisticated than the telephone calls you might receive at home. Here is what to look out for:Advertising
- They do not want a one-off donation.
- They want a monthly commitment which could work out to be $500 annually.
- They offer to fill out a form and all you have to do is sign.
- They are trained in using persuasion techniques by the companies who are raking it in.
- As some of the fundraisers (or “chuggers” as they are called in the UK) earn $13 an hour, you can imagine how much money actually gets into the charity’s coffers.
The whole concept of giving to charity should be based on a desire to help and not from being pressured in any way by a fast-talking fundraiser!
8. Do some detective work
Before deciding on donating to any charity, check out the following information. All of this should be easily available on the charity’s website. Failing that, there should be information leaflets available. This is what you should check:
- The annual report
- Names of directors and patrons
- Audited financial reports
- Specific projects and how the funds are used
- Statistics on completed projects
Charities are doing magnificent work. You just need to do some homework to make sure that they are managing their funds in the best possible way and that they are not using doubtful tactics. If you are unhappy about this, you can always volunteer to help local charities in your area.
Featured photo credit: Faces helped by charity: Water/Sacca via flickr.com
Last Updated on January 21, 2020
The Best Way to Create a Vision for the Life You Want
Creating a vision for your life might seem like a frivolous, fantastical waste of time, but it’s not: creating a compelling vision of the life you want is actually one of the most effective strategies for achieving the life of your dreams. Perhaps the best way to look at the concept of a life vision is as a compass to help guide you to take the best actions and make the right choices that help propel you toward your best life.
Why You Need a Vision
Experts and life success stories support the idea that with a vision in mind, you are more likely to succeed far beyond what you could otherwise achieve without a clear vision. Think of crafting your life vision as mapping a path to your personal and professional dreams. Life satisfaction and personal happiness are within reach. The harsh reality is that if you don’t develop your own vision, you’ll allow other people and circumstances to direct the course of your life.
How to Create Your Life Vision
Don’t expect a clear and well-defined vision overnight—envisioning your life and determining the course you will follow requires time, and reflection. You need to cultivate vision and perspective, and you also need to apply logic and planning for the practical application of your vision. Your best vision blossoms from your dreams, hopes, and aspirations. It will resonate with your values and ideals, and will generate energy and enthusiasm to help strengthen your commitment to explore the possibilities of your life.
What Do You Want?
The question sounds deceptively simple, but it’s often the most difficult to answer. Allowing yourself to explore your deepest desires can be very frightening. You may also not think you have the time to consider something as fanciful as what you want out of life, but it’s important to remind yourself that a life of fulfillment does not usually happen by chance, but by design.
It’s helpful to ask some thought-provoking questions to help you discover the possibilities of what you want out of life. Consider every aspect of your life, personal and professional, tangible and intangible. Contemplate all the important areas, family and friends, career and success, health and quality of life, spiritual connection and personal growth, and don’t forget about fun and enjoyment.
Some tips to guide you:
- Remember to ask why you want certain things
- Think about what you want, not on what you don’t want.
- Give yourself permission to dream.
- Be creative. Consider ideas that you never thought possible.
- Focus on your wishes, not what others expect of you.
Some questions to start your exploration:
- What really matters to you in life? Not what should matter, what does matter.
- What would you like to have more of in your life?
- Set aside money for a moment; what do you want in your career?
- What are your secret passions and dreams?
- What would bring more joy and happiness into your life?
- What do you want your relationships to be like?
- What qualities would you like to develop?
- What are your values? What issues do you care about?
- What are your talents? What’s special about you?
- What would you most like to accomplish?
- What would legacy would you like to leave behind?
It may be helpful to write your thoughts down in a journal or creative vision board if you’re the creative type. Add your own questions, and ask others what they want out of life. Relax and make this exercise fun. You may want to set your answers aside for a while and come back to them later to see if any have changed or if you have anything to add.
What Would Your Best Life Look Like?
Describe your ideal life in detail. Allow yourself to dream and imagine, and create a vivid picture. If you can’t visualize a picture, focus on how your best life would feel. If you find it difficult to envision your life 20 or 30 years from now, start with five years—even a few years into the future will give you a place to start. What you see may surprise you. Set aside preconceived notions. This is your chance to dream and fantasize.
A few prompts to get you started:
- What will you have accomplished already?
- How will you feel about yourself?
- What kind of people are in your life? How do you feel about them?
- What does your ideal day look like?
- Where are you? Where do you live? Think specifics, what city, state, or country, type of community, house or an apartment, style and atmosphere.
- What would you be doing?
- Are you with another person, a group of people, or are you by yourself?
- How are you dressed?
- What’s your state of mind? Happy or sad? Contented or frustrated?
- What does your physical body look like? How do you feel about that?
- Does your best life make you smile and make your heart sing? If it doesn’t, dig deeper, dream bigger.
It’s important to focus on the result, or at least a way-point in your life. Don’t think about the process for getting there yet—that’s the next step. Give yourself permission to revisit this vision every day, even if only for a few minutes. Keep your vision alive and in the front of your mind.
It may sound counter-intuitive to plan backwards rather than forwards, but when you’re planning your life from the end result, it’s often more useful to consider the last step and work your way back to the first. This is actually a valuable and practical strategy for making your vision a reality.
- What’s the last thing that would’ve had to happen to achieve your best life?
- What’s the most important choice you would’ve had to make?
- What would you have needed to learn along the way?
- What important actions would you have had to take?
- What beliefs would you have needed to change?
- What habits or behaviors would you have had to cultivate?
- What type of support would you have had to enlist?
- How long will it have taken you to realize your best life?
- What steps or milestones would you have needed to reach along the way?
Now it’s time to think about your first step, and the next step after that. Ponder the gap between where you are now and where you want to be in the future. It may seem impossible, but it’s quite achievable if you take it step-by-step.
It’s important to revisit this vision from time to time. Don’t be surprised if your answers to the questions, your technicolor vision, and the resulting plans change. That can actually be a very good thing; as you change in unforeseeable ways, the best life you envision will change as well. For now, it’s important to use the process, create your vision, and take the first step towards making that vision a reality.
Featured photo credit: Matt Noble via unsplash.com