For many of us,
buying locally matters. We’ve all heard the term and seen the signs: Shop
Locally. Eat Locally. But let’s extend that thought for a minute: do you
consider giving to your local charities?
The fact is we are
bombarded with requests from worthwhile charitable causes. Many of these are
well-known national or international organizations with sophisticated
fund-raising efforts. Amid their appeals, requests from local charities may be
easy to overlook. Yet many small organizations do a great deal of good in their
hometowns.
Before you decide
whether giving locally or nationally is a better option for your charitable
donations, here are a few things to consider:
No
matter whether an organization is local or international, always check to see
how much of the money it raises goes to administrative costs and how much actually
reaches the people or causes the charity serves. Most charities have websites
where this information is readily available.
What
kind of giving matters most to you? If you want to support the arts, chances
are that a local organization, like your community theatre or concert
association. will make great use of your funds. If you’d rather support
agencies that help with natural disasters, an international organization is
probably the most effective place for your money.
Do
you want to give actual items rather than money? If so, local charities usually
are better choices. Many places, for example, use “angel trees” which are
programs that provide gifts for needy children or the elderly. If you prefer to
help the hungry with canned goods rather than cash, you may want to give to
your local food bank or homeless shelter.
Find
out whether you can specify that your gift is used locally. Many national
organizations like the Red Cross, Salvation Army or food banks are happy to
receive gifts that are designated for your local chapter.
Just
as local government is closer to the people it serves, local charities may be
more in touch with specific community needs. If you give locally, you can talk
to people in charge and find out exactly where your money goes.
Giving
locally allows you to combine financial giving with hands-on service that may
be more satisfying than just giving money. You could help serve meals at a
shelter, pack gift boxes, volunteer at a food bank or distribute gifts.
Just
because a charity is local, however, don’t automatically assume it uses its
money wisely or efficiently. Always check. Sometimes, a small organization may
be trying to duplicate what an older or larger organization can do more
efficiently. Sometimes, local organizations are run by people who are
well-meaning but don’t necessarily have the skills or contacts to make the best
use of donations. Do your homework.
Thoughts from a Financial Advisor
Remember that
giving is an individual decision. Choose the level and type of giving that fits
best for you, instead of trying to match what others do or give what someone
else thinks you should.
Finally, keep a
balanced perspective. There are many worthwhile organizations, and you can’t
possibly give to them all. Don’t waste energy feeling guilty about the ones you
skip. Instead, appreciate the giving you do in your own way, and let it add joy
and satisfaction to your life.
Call me if you want to discuss further.
Important Disclosures
The opinions voiced in this material are for general
information only and are not intended to provide specific advice or
recommendations for any individual.
We suggest that you discuss your specific charitable donation tax issues with a qualified tax advisor.