Just because our bank accounts and the job market have gotten smaller, doesn't mean our hearts have to follow suit. We still want to give in big ways, so we've asked Ruth Zive how to help the less fortunate without cleaning out our savings...
During these times of economic turmoil, what is the most effective way to give (without tapping into your bank account)?
Volunteering is an extremely effective way to have an impact in your community without depleting your bank account balance. Non-profit organizations are always looking for volunteers to help with events, fundraising, to serve on their Boards of Directors, or even to support their delivery of services. Many businesses offer employer-supported volunteer programs that provide their staff members with paid and/or flex time so that they can volunteer.
You can also have an impact on your community by supporting businesses that give back. Many companies have point of sale programs that kick back a percentage of the purchase to charity. Or you can make a conscious choice to patronize businesses that demonstrate strong corporate social responsibility policies and practices. Lastly, you might consider making a micro loan to an individual borrower in the developing world. You, the lender, outlay as little as $25, and organizations like Kiva.org will match you with an entrepreneur in a developing country. The beauty of this program is that you eventually get your money back.
While charities rely heavily on philanthropic dollars, you don’t necessarily have to make a donation in order to have an impact. For more information, visit the following sites:
www.givingandvolunteering.ca (data on volunteering in Canada)
www.imaginecanada.ca (Imagine Canada’s Caring Company program)
How do you decide what charity to go with (there are so many!)?
So many indeed! In Canada alone, there are 161,000 non-profit organizations and charities. The non-profit sector in Canada represents 7.1% of the Gross Domestic Product – that’s bigger than the automotive or manufacturing sectors! Supporting a charity is a very personal decision. People are motivated to give back for a variety of reasons, and no reason is ‘wrong’ or ‘right’.
But regardless of the motivation, there are certain fundamentals that you should keep in mind when you decide to support a charity. Below is a list that will help you to navigate the system so that you can feel confident that your contribution will have impact:
- Is the charity registered? – Charities registered with the Canada Revenue Agency must follow certain rules to maintain their status. They have to keep adequate books and records, they must issue complete and accurate donation receipts and they have to meet annual spending requirements and disbursement quotas.
- Does the charity have a Board of Directors? – Most charities have a volunteer Board of Directors that helps to drive their goals and practices. A Board of Directors helps keep the charity accountable and on track.
- Will you receive an official donation receipt? - Tax receipts must meet specific requirements.
- Do you understand the charity’s mission? - You might want to ask how long a charity has been involved in these activities or how many people they have helped over the years. Answers to these basic questions will help you to understand more about the charity and whether or not you want to make a donation.
- Be wary of donation schemes. If you are asked to participate in a donation program that will make you profit, it is likely fraud.
Is there any way to know whether a charity’s statement of intent is accurate?
Make sure that you are an assertive and informed donor or volunteer. Ask pointed questions of the charity that you support; read their materials; talk to members of the charity’s Board of Directors; speak to recipients of service. Some charities issue annual reports that provide a lot of detail about their activities; most have brochures or websites that inform their stakeholders about their practices. Charities registered with the Canada Revenue Agency post an “Information Return” that you can view. This document includes basic information about the charity, including an account of their activity, as well as financial information like income, expenditures, assets and liabilities.
Ruth has worked in non-profit management for the last fifteen years, primarily in the areas of fundraising, marketing and board development. She is also a Founder of Passion Strategy, a consulting firm that helps businesses to develop corporate social responsibility platforms that integrate with their strategic objectives. Ruth can be reached at ruth@passionstrategy.ca.
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