Tips for Charitable Giving

Posted by Jerry Venters 
on Jan 28, 2015
 

Tips for Charitable Giving
Reprinted from the Kansas City Rotary Club Buzzsaw

At a recent meeting of the Kansas City Rotary Club, Barnett Helzberg, Kansas City philanthropist and former Chairman of the Board of Helzberg Diamonds, offered the following tips and suggestions for guidance in charitable giving:
 
  • Trap #1  The Peanut Butter Effect (Don’t spread it too thin.  Focus)
  • Trap #2  Overhead. Don’t focus exclusively on the charity’s overhead allocation.  Look to outcomes.  Often what is cheapest is not always the best.  Consider the whole picture of the charity, not just its overhead.
     
  • Trap #3    Outcome.  What did they actually accomplish? What are the outcomes of the charity?
     
  • Trap #4    Endowment. It helps to smooth over annual shortfall. Donor advised funds are very good to keep the family involved and to monitor the rises and declines in recipient charities’ activities and accomplishments. 
     
  • Trap #5  Who is asking?   Many times we focus on who is asking us for funds rather than the underlying donee organization. Focus on the donee recipient. Get involved in what you are passionate about.
     
  • Trap #6  Non-deductible Gifts.  If it is fun for you and a worthwhile involvement, do it.   Be less concerned with the income tax deduction filter on gifts and more concerned with the activities.