The Seven Deadly Sins of Charitable Giving

Submitted by EKFH on 09-03-2010

With thanks to Planforgifts.com

Introduction

• it estimated that a third of donors who set out to make a charitable gift do not complete the task
• Is it the fault of the charity or the donor, or simply a breakdown in communication?
• Make your gift happen and make it count

Deadly Sin #1 – Not Understanding Your Philanthropic Interests

• Begin to create your philanthropic footprint by analyzing your past giving and determine where your core areas of interest have been
• Where have you committed time, interest and money?
• Look for common trends and themes

Deadly Sin #2 – Lack of Direction and Theme

• If you really want to achieve the greatest impact with your future charitable giving choose one or two sectors and stick with them
• Take clues for your past and choose from the broad sectors including Health Care
• Next step is to choose the specific charity or charities to support

Deadly Sin #3 – Fear of the Bigger Dream

• What if you stop for a inute and Dream Big?
• Imagine what you could achieve if you focus your efforts and consider your giving potential
• Could your gift e part of a larger, family-giving plan?
• Discuss you plans with your family in any event to prevent misunderstandings

Deadly Sin #4 – Not Doing Your Homework

• Is the charity worthy?
• Find out about the charity before you give – approach it like you would an investment
  • review their annual report
  • learn about their leadership
  • are they in good standing with CRA?
  • are they achieving their stated goals?
  • do they have policies and procedures in place?

Deadly Sin #5 – Not Looking at Giving Options

• Choose a giving option that fits our financial and estate plan
• Consider an option other than cash
  • a gift through your will
  • publicly traded securities
  • donor advised funds
  • life insurance
  • charitable remainder trusts and other trusts
  • residual interests
  • RRSP’s and RRIF’s
  • Real Estate
  • Annuities
  • Private company shares

Deadly Sin #6 – Not Demanding Professionalism

• Don’t make the mistake of expecting less froma charity than you would from a for-profit company
• Charities should have staff with gift planning skills and expertise to help with the process
• Privacy protection and Donor Recognition policies are a must

Deadly Sin #7 – Repeating a Bad Experience

• Once you have completed the gift – sit back and take stock
• Was the experience satisfying?
• Did the charity provide sufficient support and communication?
• If not – don’t be afriad to tell the charity