“Idol Gives Back, the historic Emmy Award-winning television event and music celebration has raised more than $140 million to benefit charities around the world and across the United States. The two-hour fundraising event returned to FOX on Wednesday, April 21 and raised more than $45 million. Beneficiaries for this year’s event include Children’s Health Fund, Feeding America, Malaria No More, Save the Children’s U.S. Programs and the United Nations Foundation.”

What a great way to help raise money for these terrific organizations. Thanks American Idol!

Helping People is the Key!

Philanthropy is about people. Make sure that you have defined the specific people to be helped by your project.

People want to help other people. It is as simple as that. Nobody wants to contribute to a poorly framed project that says “Let’s save the world’s poor.” What does it mean? Who are they? The problem seems overwhelming and unsolvable.

But if I come to you and say we have a village in Africa that needs mosquito netting to reduce the risk of malaria, now we have real people, with a real problem. It can be solved, and we know who will be helped if we do it!

Give Lots of People an Opportunity to Help

One of the most powerful things we can do in our philanthropy is to give others a chance to participate. Help other people to help other people!

The change that will come into their hearts as they contribute in meaningful ways is one of the most important things you can do to save the planet! The key here is to make their opportunity to help as direct and personal as possible.

When we organized our event to take the children to Disneyland, we invited each donor to come to Disneyland with us and to spend the day with the child they sponsored. Every year, we now have 350 adults who come to help 350 children.

Some of these adults have started similar programs in different regions. Our philanthropy is multiplying because we make sure that many people get a chance to participate in the gift of giving.

All We Need Is Someone to Say “Go!”

One of the most powerful things we can do as philanthropists—and if you have read this far, I know you are one—is to give the go sign to important and urgent projects.

When the 2004 tsunami hit Indonesia, Thailand, India, and several island nations in the Indian Ocean, we immediately dispatched an emergency paramedic team to India. We told them, “Get on the plane; we are sending you the money right now!”

Then we went out to ask for donations. We keep an emergency fund set aside for just such occasions. We then take targeted donations to replenish the fund so we can help out the next time around.

We raised so much money for the medical team that we ended up buying two fishing boats to help restore the local economy as well. People will absolutely open their pocketbooks if you have a well-framed project that helps real people and if you have already given the go sign!

In this generation, when business rules the day, it’s refreshing to witness the (re)emergence of fundamental philanthropy.

What is fundamental philanthropy?

Simply put, philanthropy is any altruistic activity performed for the purpose of creating good or improving the quality of life. Fundamental philanthropy is then described as ‘basic’ or ‘natural’ philanthropy. This type of philanthropy involves using our own ‘natural’ resources, such as talents, knowledge and opportunities to perform an altruistic act.

Fundamental philanthropy or intentional acts of kindness has become one of today’s hottest topics. Voluntary association, voluntary giving, and voluntary actions – are gaining so much attention and awareness in our culture. National magazines and local newspapers have recently made celebrities out of ordinary citizens committed to extraordinary acts of grace using nothing more than their innate abilities.

Even Hollywood is in on the movement, with the biggest and brightest stars temporarily putting away their wallets and tapping into the greatest fundraising influence possible – their famous names and faces – to shine light on important causes. Fundamental philanthropy, it seems has become more mainstream in recent years than ever before. The goal in life seems to be changing. An elemental emphasis on “philanthropy” has recently shifted to a popular focus of “social responsibility”. And the truth is, even though we may not be rich, famous celebrities, we all have something powerful that must be given to society!

Why is fundamental philanthropy so important?

Brendan Behan once said, “I have a total irreverence for anything connected with society, except that which makes the road safer, the beer stronger, the old men and women warmer in the winter, and happier in the summer.” A jolly good declaration, and one that clearly depicts the essence of that which makes charity a way of life instead of a duty.

Philanthropy, by tradition, is rich, old people donating loads of money to their pet causes. A bourgeois obligation. People like Andrew Carnegie, JP Morgan, and JD Rockefeller…they were serious philanthropists. For most of society, the assumption is that “if I’m not rich, I can’t be a philanthropist”. Simply not so. Philanthropy does not have anything to do with money. Not a single cent is required. You can put your checkbook away forever and still be a well-seasoned philanthropist.

A wise person once said, “All the money in the world doesn’t help if there isn’t anyone to do the work. The most plentiful crops will rot if there is no one to harvest the fields”. Those donations of compassion and cooperation are just as important as money because both parties are fundamental to getting the work done.

Although, it’s essential for each us to contribute, when we can, funds to further the efforts and operations of our preferred charities, it is not the only way to be charitable! It’s high time for society to get back to basics and start discovering the greatest gifts we have to offer such as our:

Skills.   Are you an experienced carpenter? Why not join a Habitat for Humanity project in your area?

Talents.  Got a green-thumb? Try extending your love of horticulture to your community with a ‘Sew a Second Row’ group!

Hobbies.   Do you love to knit? Get your Friday night knitting club to start making warming crochet caps for kids with cancer.

Knowledge.   Knowledge is power. If you know of a way to help others, offer that wisdom to individuals, groups, communities and nations.

Status.   If you’re in a position of power or influence, use it! Put your prominence to good by raising awareness to the pressing issues in our world.

The earth is ripe for change.  Fundamental philanthropy is essential to positive change. Tapping into our innate gifts is a powerful way to combine our “natural resources” with our desire to increase the well-being of society. The great news is we all have something to contribute!

Businesses can gain immensely from charitable trusts, though these trusts are nonprofit organizations that are set up for the benefit of some other party. That is the reason why most businesses are setting up charitable trusts for themselves. It is not too difficult to set up a charitable trust either. A minimum amount of $100,000 worth in assets is enough to be eligible to set up a charitable trust. In addition, there are several privileges that charitable trusts have.

The following is a list of these privileges:

- Charitable trusts will not cease to function even if they have not been able to fulfill their initial goals. These trusts have what is known as cy pres, a provision that allows charitable trusts to change their beneficiary options if they are not able to meet the first one.

- Charitable trusts can remain working perpetually, which is not the case with other organizations. Most establishments have a particular tenure after which they have to either renew licenses or cease to function, but charitable trusts can go on indefinitely if they so wanted.

- Charitable trusts are given permissions to establish themselves even if their beneficiary options do not seem to be quite concrete. Even if there is just a philanthropic concept, charitable trusts are given permissions to start.

Hence, it is very easy to start charitable trusts. That is what businesses do. The charitable trusts do fulfill the noble intention of serving some beneficiary, which could be an individual, a group of persons or an establishment. At the same time, the charitable trusts help the owners to manage their resources well.

The following is a list of benefits that the owners of charitable trusts are provided by the authorities:

- Charitable trust owners are exempted from a portion of their estates taxes. These taxes can even be waived off if the established charitable trust is large enough in its scope.

- Charitable trust owners are also benefited in terms of capital gains taxes. In this way, charitable trusts help to increase the overall income of the owner of the trust.

- In case of retirement or winding up of business, the charitable trust funds can be used as a sort of retirement benefit plan for the owner. The charitable trust will continue to work as long as there are funds in it. However, it will also pay for the expenses of the owner.

- Charitable trusts are very handy if there is a sudden demise of the owner of the assets. These trusts will then appoint a living trustee – or the living trustee could be appointed during the lifetime of the owner – and this living trustee will undertake the proper disbursement of the assets among the survivors. This happens if no will is made, and in many cases, even if there is a will, the living trustee can supersede the will in some points. An advantage of this arrangement is that the survivors do not have to wait for lengthy probate periods and nor do they have to pay heavy fees for legal procedures.

That is the reason why setting up a charitable trust is a worthwhile idea when the person is still alive. It will help to improve assets during life, and will help to properly disburse assets after death. Setting up a charitable trust is easier than setting up other organizations. However, since the rules differ from one place to another, it is necessary to look into state laws before planning to go ahead with the idea of setting up a charitable trust.

One of the more helpful sites for finding the right organization to donate to is Charity Navigator with a page dedicated to Helping Survivors of the Haiti Earthquake.  There is so much need in Haiti that there are countless organizations focused on filling that need wherever possible.

Unfortunately, there are also organizations that appear to be focused on helping, but are probably not putting donations to effective use.   Charity Navigator also provides an excellent summary of tips for making sure your funds will be used effectively, as well as what to be careful about.   It’s important to do a little research to ensure you will be satisfied with the organization’s efforts.   It’s also important to ensure we don’t contribute to scams and fraud, or become a victim ourselves. 

Tips For Funding Haiti Earthquake Relief Efforts

• Avoid Newly-Formed Charities and Give To An Established Charity That Has Worked In Haiti – Establishing a new charity is hard enough, but in a crisis, the odds of succeeding are slim to none. Think of it this way: would you entrust all your savings in a financial firm that just opened, doesn’t even have stationery, and whose employees have no experience in investing money? Doubtful. Find a charity with a proven track record of success in providing disaster relief and one that has worked in Haiti. Start with the list of charities on the right and if a group you are considering supporting isn’t there, then take the time to thoroughly research it before making a gift.
• Do Not Give To The Haitian Government – Haiti is known to be a corrupt country. And news reports post earthquake indicate that the government is pretty much not functioning. If that isn’t enough reason not to give directly to the Haiti government, then consider the fact that contributions to foreign governments are not tax deductible.
• Designate Your Investment – Generally, it is best to trust your chosen charity to spend your donation as it sees fit. But with disaster related giving, you should specify that you want your donation only used to respond to this particular crisis.
• Do Not Send Supplies – Knowing that millions of people are desperately in need of food and water, it is hard not to want to pack up a box of supplies and send it to Haiti. But this type of philanthropy is simply not practical or efficient. Even if mail could get to Haiti, no one is set up to receive these goods, much less organize and distribute them to the victims. Furthermore, charities are often able to partner with companies to acquire large amounts of in-kind donations such as bottled water and new clothing. Instead of boxing up and sending your old clothing, have a garage sale and turn your used goods into cash and donate that to a worthy charity.
• Be Careful Of Email Solicitations

Be Leery Of People That Contact You Online Claiming To Be A Victim – Unless you personally know someone in Haiti, anyone alleging to be in this position is most likely part of a scam. Obviously, people affected by the earthquake are in no position to contact you directly for assistance.

Delete Unsolicited Emails With Attachments – Never respond to unsolicited emails. Do not open any attachments to these emails even if they claim to contain pictures from Haiti. These attachments are probably viruses.

• Seek Out The Charity’s Authorized Website – Refer to our blog as to why this is important.
• Is it safe to make a text donation? – So long as you do your homework, yes. Please visit our blog for a longer explanation.
• Consider The Nature Of The Charity’s Work – Not every charity is responding in the same way. Some are providing medical assistance, some shelter, some food and water. Others will be more focused on either short term or long term rebuilding efforts. And some are just helping to fundraise for other nonprofits. Think about what it is you want your philanthropic investment to accomplish and then take the time to find the charities doing that work. At Charity Navigator we link to each charity’s website so that you can quickly learn more about their plans to help in Haiti.
• Be Inspired By Social Media, But Still Do Your Homework – Social networking tools like Twitter, Facebook, YouTube and blogs are delivering heart-wrenching images and information about Haiti to our computers and phones. Many of them include pleas to donate. While these tools can be a powerful tool to inspire your desire to help, you should not blindly give via these vehicles. You must take the time to investigate the groups behind such pleas for help to ensure that it comes from a legitimate nonprofit.
• Avoid Telemarketers – As always, hang up the phone do your homework and give directly to a charity.
• Do Not Expect Immediate Results, But Do Keep Tabs On What Your Donation Accomplishes- It takes time for charities to mobilize, to assess the problems that need to be addressed and to develop effective solutions. Donors need to be patient so charities will not feel pressured to plunge in and offer ineffective aid, simply to placate impatient donors. That doesn’t mean donors shouldn’t hold the charities accountable for delivering on their promises! Be sure to follow up with the charity in a few months to find out (a) how your donation was put to use and (b) if the organization needs additional support to complete the recovery effort.

Source: CharityNavigator.org

When Bill Gates recently announced that billionaires should give away the bulk of their fortunes, it made headlines around the world. While the Microsoft founder is among the world’s wealthiest individuals and perhaps the leading philanthropist of his time, he is just one of many entrepreneurs who have amassed great fortunes in the technology sector and are using their wealth and influence to bring about positive change.

Last year the Wall Street Journal (“Melinda Gates Defines a Charity’s Mission,” June 5, 2008) reported on the “growing class of people who are applying fortunes made in tech and on the Internet to trying to solve some of the world’s most stubborn problems,” including Jeff Skoll and Pierre Omidyar from eBay and Google founders Larry Page and Serge Brin. According to the article, “These new philanthropists — as you might expect — are trying to apply the same nitty-gritty analysis that many may have used to manage their businesses to difficult-to-measure social problems.”

“Philanthropy and technology can create enormous synergy, and the leaders of the tech community see a tremendous opportunity to change the world for the better,” said Mouli Cohen, entrepreneur, who founded eCast, a company that revolutionized the distribution of digital music to out of home venues worldwide and later started Voltage Capital, a private equity focused innovation fund.

Cohen’s start-ups have generated more than $3 billion in shareholder value, but the value he has created through his contributions in the philanthropic arena are perhaps his greatest source of pride. Cohen currently focuses his efforts on the research and treatment of pediatric cancer and blindness through grants to national and international organizations including Camp Okizu and the Childhood Vision Campaign. “I am personally committed to reducing the incidence of childhood blindness in third world countries and expanding the number and reach of cancer detection and treatment programs for children.”

Cohen is among the new breed of tech philanthropists whose involvement extends far beyond their checkbooks. According to Private Wealth Magazine, the confluence of wealth and technology is redefining philanthropy and ushering in an age of innovation and social change:

The entrepreneurs of the ’80s and ’90s have become the philanthropists of the new millennium, leveraging their time, energy and capital toward the social good. Today’s donors are younger, more energetic and more adept at leveraging technology, investing their capital and driving results. Frequently referred to as “venture philanthropists” or “social entrepreneurs,” they are accustomed to achieving success and not used to backing down in the face of resistance. Comfortable with their achievements and confident in their abilities, they are transitioning their passion and talent for creating wealth to its logical corollary: the distribution of wealth—“giving back,” as some would say—with the very same intensity and sense of direction as was required to create their wealth.

Gates, whose Bill & Melinda Gates Foundation is the world’s most generous philanthropic organization, hascalled upon his fellow billionaires to spread their wealth to the poorest nations and make a difference in fighting disease, improving access to education and championing other causes. In announcing hisdeparture from his day-to-day duties as chairman of Microsoft to focus his energies on the Foundation, Gates told reporters, “With success, I have been given great wealth. And with great wealth comes great responsibility to give back to society, to see that those resources are put to work in the best possible way to
help those in need.”

Gates’ message is clearly resonating with the billionaire set. Warren Buffett has pledged to leave the bulk of his fortune to the Gates Foundation, representing perhaps the largest charitable gift in history – estimated at$31 billion.

Although the wealthy certainly have more to give, Cohen argues that philanthropy is not solely the purview of the mega-rich. “There are opportunities for anyone with a passion for a particular cause to add value, not just in terms of monetary contributions. Organizations need tactical philanthropists’ to volunteer their time and provide intellectual and social capital to make sure the money creates the greatest possible impact.”

There are a number of different charities across the world and some of these are legitimate. To help donors find the legitimate charities services like Charity Navigator can help. This organization is a non profit independent evaluator of charities in America.

The stated goal of this organization is to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of America’s largest charities.

What this organization does is to look at the financial health of charities in America. With the help of this organization donors can see what the charity goal of different charities is. You will get to see how the charities spend the money that is given. From the financial statements you will get an idea of how well organized a charity is. You also gain an insight into how they use the money for their cause.

Besides looking at the financial outlook of a charity you have the option of looking for tips about charities. From this section in the Charity Navigator you can see what criteria you should follow to choose a charity to give donations. Besides seeing how to choose a charity you will find other tips.

This section in the Charity Navigator also has good resources for you to check out. From this section you can find ways to protect yourself from online scams. Older donors will find useful information in this recourses section too. Of course using the Charity Navigator does not mean that you will be able to find all of the charities in America.

At present Charity Navigator will have information on over 5,000 different charities in America. There is information about organizations which deal in international operations. One more way that you can find what a charity is like is to look at its rank in the Navigator site. This will inform you if the charity is well run and can perform the charity of its stated purpose.

All of these information aspects aside you will get news about charity activities that are taking place around the world. These hot topics as they are known will give you an insight as to various situations that need charitable help.

You also have the opportunity of visiting a charity blog that is linked to the Charity Navigator site. From these links you can see what people think about charities and the work that they do.

With so much of information being found on the internet it is sometimes hard to find what you want. Charity Navigator is one of the ways to find information about charities. The service from this organization is a great help to all donors. The vast amount of information will let you choose what you want to see. Charity navigator will let you see the charity you want in depth and without all of the extra

Businesses and charities are not “out of the woods” yet by a long shot, but it appears the business cycle is improving.  The deep recession may be coming to an end and growth may return to various industrial and consumer markets across the globe.   Housing has a long way to go before any recovery is truly seen however, and millions may still face foreclosure this year. 

While the stock market makes it appear that the economy is recovering quickly, there are still millions of people struggling each day to find a job, keep their families in a home, and even find enough money for food.   We believe it’s time once again to focus on charitable giving, and to expand our focus a little.   So if you tightened your belt this past year as most of us did, perhaps it’s time to think about giving once again to your favorite cause or charity?

We will continue to look for stories across the nation about charitable giving, and ways to simply help others.  If indeed the global economy may see a recovery this year, with the ideal that “a rising tide lifts all boats,”  then now is a perfect time to help those who need it along the way.   Because as surely as the tide comes in, there are those who simply won’t be able to climb in the boat.   A helping hand can go a long way!

It’s certainly affecting business and employment at all levels, and in many communities it’s also affecting charitable causes. Yet at least on a larger scale,  charities seem to be weathering the storm of the recession fairly well.

“Charitable giving by wealthy individuals and endowed foundations in the United States has proven resilient during the economic crisis, with some foundations increasing donations in response.”

“Experts fear a drop-off in 2010 because philanthropy is something of a lagging indicator. Many corporations donate to the arts, education and social services based on a three-year average of profits.”

“I hear from (wealthy) people that they’ve got a tough situation this year,” Tuohey said. “My reaction is, ‘You can afford to lose some.’ Think about the less fortunate, the people who have tough situations every year.”

“Since the heavy economic turbulence of September and October, nearly 50 grant-makers — primarily endowed foundations and corporations ” have pledged more than $100 million in response to the crisis, according to the Foundation Center, which collects grant data from about 1,000 charitable foundations.”

Yet even more challenging for many non-profit organizations are the fragile links within the community for helping people with the basic essentials such as food, clothing and shelter.  Some indications are that more and more people are relying on the same basket of charitable goods and services that these agencies provide, and they may be finding less resources available at critical times. 

Fortunately we’ll be transitioning to warmer months soon, and government leaders are working hard to focus on shortfalls in financial support for key programs and services.  President Obama has asked Americans to step up to the plate to help our fellow citizens and it appears many people have heard that call.  But not eveyone believes charitable organizations are handling the financial crisis well, or receiving enough support from all reaches within the nation. 

“What is required of us now,” President Barack Obama said in his inaugural address this week, “is a new era of responsibility — a recognition on the part of every American that we have duties to ourselves, our nation and the world.” It is a message that nonprofit organizations would like our nation to take to heart, as 2009 fund-raising begins.

“Unfortunately, we nonprofit leaders, like our for-profit counterparts, are laying awake nights. The end of 2008 was disappointing for philanthropy, and some believe that 2009 will be difficult as well. Indiana University’s Center on Philanthropy publishes the Philanthropic Giving Index (PGI), which tracks the predictions of nonprofit leaders about charitable giving. Like the more-famous Consumer Confidence Index, it shows a level of gloom not seen in years, falling from 83 to 65 (on a 0-100 scale) in just six months.”

Charitable causes should not depend on political leanings, but obviously some researchers believe it matters and that non-profit groups can capitalize on these trends.

“Reasonable people can disagree on politics, but the numbers on giving speak for themselves. Nonprofit executives, disproportionately politically progressive, do well to remember that many of the folks they will count on in hard times are not necessarily those who share their political views. Understanding this might make for better fund raising in a scary year — and help us all to give credit where it is due.”

Perhaps that’s sage advice for trends in fundraising during challenging times.  Other non-profit experts believe we can equally learn from the mistakes of our political leaders, especially as it relates to fund-raising and non-profit administration.  Goodness knows that learning from the mistakes of others is rule #1 in achieving excellence.

One thing is for sure however, Non-profit organizations are playing an increasingly important role in supporting the needs of millions of Americans.  To that end the Congressional Philanthropy Caucus, stood up in Congress and the Senate in 2007 and 2008 respectively, was formed to help our elected leadership better understand the role that foundations and corporate giving programs provide to the nation.  Hopefully legislative issues such as taxation and public policy programs will better consider the needs and structure of non-profit organizations in society and help them become more effective where appropriate.

That may give you some indication of the storyline.  Based on the research, it looks like conservatives give a lot more of their personal wealth to charitable causes than do liberals.  It bothers me to stereotype people, but that’s basically what the article, and the research has stated.

“Liberals show tremendous compassion in pushing for generous government spending to help the neediest people at home and abroad. Yet when it comes to individual contributions to charitable causes, liberals are cheapskates.”

“Arthur Brooks, the author of a book on donors to charity, “Who Really Cares“, cites data that households headed by conservatives give 30 percent more to charity than households headed by liberals. A study by Google found an even greater disproportion: average annual contributions reported by conservatives were almost double those of liberals”

 The data is surprising, especially given the research when the results didn’t come back as expected. 

“When I started doing research on charity,” Mr. Brooks wrote, “I expected to find that political liberals — who, I believed, genuinely cared more about others than conservatives did — would turn out to be the most privately charitable people. So when my early findings led me to the opposite conclusion, I assumed I had made some sort of technical error. I re-ran analyses. I got new data. Nothing worked. In the end, I had no option but to change my views.”

So assuming the research is accurate, then what is really going on?  Why do liberals give less of their personal wealth than conservatives?  And what does it really tell us?  Mr. Brooks indicates that religion plays a large role in charitable giving, and that religious liberals and conservatives give about the same.  But it’s interesting that conservatives came out ahead on other charitable giving approaches- themselves.

“Conservatives also appear to be more generous than liberals in nonfinancial ways. People in red states are considerably more likely to volunteer for good causes, and conservatives give blood more often. If liberals and moderates gave blood as often as conservatives, Mr. Brooks said, the American blood supply would increase by 45 percent.”

We all have our own opinions of these matters, but personally I believe the values that conservatives and the red states have, especially regarding religious convictions, leave them much more inclined to give of their wealth and time.  It’s something that is instilled within families as children are raised, and it speaks toward a sense of community.   And when your peers (and congregations) are giving, maybe it leaves one more inclined to do the same.

One thing does bother me though- the seeming indifference to the degree of charitable giving that Americans provide internationally.  In the history of the world and all mankind, there has never been a nation that has given so much to others as does the U.S. in foreign aid, food, programs and the help of our people.  Mr. Brooks’ research found the same thing.

“Something similar is true internationally. European countries seem to show more compassion than America in providing safety nets for the poor, and they give far more humanitarian foreign aid per capita than the United States does. But as individuals, Europeans are far less charitable than Americans.”

“Americans give sums to charity equivalent to 1.67 percent of G.N.P., according to a terrific new book, “Philanthrocapitalism,” by Matthew Bishop and Michael Green. The British are second, with 0.73 percent, while the stingiest people on the list are the French, at 0.14 percent.”

This OP-Ed article has generated a lot of interest by readers of course, and Mr. Kristof’s blog, On the Ground, has generated hundreds of “Comments on Stinginess“ by supposed conservatives and liberals espousing their beliefs and opinions.

I am not in agreement with those who believe fostering government policies that increase spending to help the needy is “being charitable.”  For one thing, that’s spending other people’s money, namely taxpayers, and does not reflect a degree of individual charity.  But what about giving to the arts or sciences, or other worthy causes such as the environment?  Well, I agree that may qualify as charitable giving, but does it really help people in need?  I don’t think so… and for me, that’s where charitable giving really makes a difference- in the lives and welfare of our fellow human beings.

All in all, it would be far better not to worry about “who gives more” and to work harder instead on ways to help those really in need.  Liberal or conservative, it really doesn’t matter.  Especially during the holiday season, and the challenging times we face.  Donating more of our money, time or personal attention to helping others is something that can really make a difference.