The Seven Deadly Sins of Charitable Giving
Submitted by EKFH on 09-03-2010
With thanks to Planforgifts.com
- 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
- 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