May, 2019 - Jimmy Lustig | Lustig Family Foundation

Are you and your family looking for a way to make a difference in the world but are unsure where to begin? It’s not surprising when there are millions of causes out there competing for your donations. Here are some tips that will help you get started:

Give to a cause that’s meaningful to you

Everyone will find different causes meaningful to them. Some people are natural animal lovers and feel drawn to help causes like the Humane Society while others have soft spots for children and may prefer to give to a children’s charity.

If you’ve gone through a hard time in your life when you could’ve used help, search for an organization related to that hardship. If you can find a cause that means a lot to you personally, you’ll find giving is more enjoyable.

Do your research

When giving away your hard-earned money, it’s essential to know how it will be used. Even if the cause is one that’s near to your heart, how can you be sure that the organization is effective at creating positive change in that area?

There are plenty of tools available to you that can assist with researching non-profits. Charity Navigator is a popular site that reports on larger non-profits (those claiming over $1 million in annual revenue). Charity Watch or the BBB’s Wise Giving Alliance are also useful as references. The information available on these websites include income amount, foundation status, and effectiveness reports.

If you aren’t sure where to start, you can look at one of these sites and see which charities they rank as the “best.” If one stands out to you, cross reference it on other sites. If the consensus is that the organization is legitimate and effective, then it’s a good choice.

Give with a plan

Creating a plan for your charitable giving the same way that you would for a business. How much money will you contribute? Will you give monthly or annually? Will you give a more substantial amount to one organization or smaller amounts to several different ones?

If you’re giving as a family, each family member could choose a cause that’s most meaningful to them. Or, you can take a vote and decide on one charity that is worthy of your contribution. Whatever your plan is, decide on it before you begin sending out donations.

Give respectfully and with humility

As a philanthropist, give respectfully and from a place of humility. You are doing a noble act by giving, and of course, you are allowed to be proud of that. But try to remember that you are a part of a community of donors and that every part of that community is valuable. Also, remember to be grateful for the organization and the individuals who work hard to make your donations worthwhile.

Give joyfully

Lastly, whether you’re a solo philanthropist or an altruistic family, be sure to make giving fun. When you enjoy giving, you’ll be happier and you’ll be more likely to give in the future. And who knows? You may even inspire others to become more generous too.

Right now, the field of philanthropy is facing several serious challenges. There’s the need for collective action on an unprecedented scale to tackle climate change. There’s the fact that while technology is helping to solve a lot of problems, it’s also creating some new ones. Then, there’s the fact that the very nature of philanthropy is currently under attack. Some are questioning whether or not philanthropy is effective or not. There’s a question of whether or not it can remain legitimate in a democratic society. All of these issues mean that philanthropy is currently at a crossroads and three major changes need to happen for it to continue to be a successful endeavor.

Acknowledging how money is made

The Sackler family is the owner of Purdue Pharma, the inventor of OxyContin, a drug largely responsible for the current opioid crisis. The family is also a big donator to the arts. Recently, a number of organizations have rejected donations from the family and have stated they won’t take any more of their money. It’s clear that donations cannot be separated from how the money was made. It’s been a long debate, one that started with Rockefeller and Carnegie, but it seems to have come to an agreement that money made through ethically dubious ways shouldn’t be put towards philanthropy.

Reflecting diversity

Power shifts in philanthropy can only happen if the field itself reflects the diversity of the communities and people they serve. Some nonprofit organizations have begun to ask themselves if the gender and ethnic makeup of their board of trustees is representative of the larger population of the communities they’re working in. As philanthropy continues to grow around the world, it’s crucial that organizations match the culture of giving already present in that country.

Transparency and openness

Transparency is an ongoing challenge for nonprofit organizations. A level of anonymity is sometimes required to keep donors private, but the general culture should be one of openness. It helps the organization remain legitimacy in regards to where the money comes from. Open data can also help inspire new discoveries. The recent shift towards using limited liability companies (LLC) in place of traditional philanthropic structures provides more flexibility but also means there is much less transparency required of the donor. This switch could undermine the fields overall effort to be more transparent.

Jimmy Lustig is an active philanthropist. He and his wife created the Lustig Family Foundation.

Month: May 2019

Giving Tips for Philanthropists and Their Families

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