Philanthropy is the act of giving money, time, or other resources to a charitable cause. There are many different ways to give philanthropically, and the best way to give depends on the donor’s goals and the needs of the recipient organization.
One way to give philanthropically is through donations. Donations can be in the form of money, goods, or time. Money donations are typically used to support operational costs or specific programs of the recipient organization. Goods donations are usually physical material items that the receiving company can use to further its mission, such as for a food bank, or clothes for a shelter. Time donations involve volunteerism and can take many different forms, such as tutoring children or helping with event planning.
Another way to give philanthropically is through grants. A grant is a sum of money given by an individual, foundation, or government agency to an entity for a specific purpose. Grants are typically awarded based on a competitive application process and are often used to support capital projects or research initiatives.
The third type of giving is called sponsorship. A sponsorship is a financial contribution made by an individual or company to support an event or activity organized by another party. Sponsorships can be given in exchange for promotional benefits, such as advertising exposure at the event or recognition in event materials.
Finally, there is workplace giving. Workplace giving programs are typically set up by employers and offer employees the opportunity to make charitable donations through payroll deduction. These programs often allow employees to designate which organizations will receive their donations and how much they would like to give regularly.
How to Give Money the Right Way
When it comes to giving money the right way, research is critical. You need to ensure that your donation is going to a reputable and effective organization. Companies that receive donations in the United States have a non profit, or not for profit designation at the IRS for tax purposes, and should therefore have a 503c set up. Beware donating and giving to organizations that are not an official 503c, because it will be even harder to track where the funds are used. Another important factor to consider is what cause you want to support. GoFundMe has been a recent crowdfunding platform to give peer to peer. Some people use it when there are family or natural disasters, to help out each other or a community.
There are many worthy causes out there, so it is important to choose one that resonates with you. Once you have chosen a cause, research specific group or company within that cause area to find the best fit for your donation. Some examples are donating to the St. Jude Children’s Research Hospital if the youth is top of mind, or Bell Socialization Services to uplift community members with intellectual disabilities, mental health diagnoses and homeless citizens in need of shelter.
Deciding How to Give
There are several ways you can donate money. The most common method is simply writing a cheque or making a credit card donation directly to the organization of your choice. However, there are other options available as well, such as donating stocks or setting up a charitable giving account through your bank or broker. Whichever method you choose, be sure to get a receipt so that you can claim the tax deduction if you itemize deductions on your tax return.