Tis the season to be giving, and after getting your finances ready for the holidays, you might have thought about giving back to society and are now trying to determine the “right” charity to do so.
Here are six steps to help you get started.
1. Determine your donation
Start by deciding how much you can give. Give what you have, and not beyond your means – the mantra that also applies to managing your expenses and spending.
Take stock of your current income, savings and investments, and determine a percentage you can donate – perhaps 5-10% of your monthly income. While the act of giving is important, it is vital to take care of yourself first, so do prioritise your own expenses.
Also remember that your contribution could be in the form of volunteer work, so determine how much time you are able to commit.
2. Identify the causes
Identify and support causes you feel most passionate about. Look for feelings of fulfilment and gratitude, and consider whether you feel the urge to contribute to the cause. Go where your heart tells you.
3. Do your research
Look up the various charities you could contribute to. Consider the effectiveness of an organisation’s programmes, its efficiency in using funds, and the tracking of deliverables.
Go over reports and look for data on how many people they have helped, as well as the progress of their initiatives. It is crucial to note whether they are spending the money on actual outreach or using it to run the company.
4. Reach out
There is no better way to know an organisation than by talking to its members. Connect with them on a personal level and find out about their culture.
This is similar to researching a company to work for or invest in. Get to know the people behind them, the passion and motivation that drive their cause and projects, how they treat other people, and whether their values align with yours.
5. Volunteer
Take the opportunity to volunteer in projects or events to see how your money is helping people on the ground. You will also get to experience how it feels to do what they do, and understand the organisation’s challenges.
But be practical and do this according to your own capacity and capability.
6. Contribute and track
After deciding on the charities you’d like to help, discuss with them on how you will be contributing your money – whether it is a one-off or recurring donation, and for how long. If you would like to volunteer on a limited or regular basis, make the arrangements.
On your part, work out the best way to channel funds to the organisation, such as a monthly bank transfer or auto-debit setup. Organise your schedule so you are available to help out as specified.
Then, devise a simple method to track metrics such as time, key events, and how many people the money in the organisation has reached. This could be as simple as using an Excel spreadsheet.
Contact the charity every so often for news, or keep tabs on their events and reports, to update your information.
This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.