As cash registers ring and shopping bags sag, some choose not to give yet another pair of red-and-green socks or a peppermint-scented candle, instead sharing the gift of philanthropy by making a charitable donation in a loved one's name.
Americans are generous givers, with charity donations hitting $306 billion in 2007, the first time the number broke $300 billion. Nonprofit health organizations took in $23 billion of that haul, according to the Giving USA Foundation, a Glenview, Ill.-based organization that tracks charitable giving. This year may be a bit leaner, says Patrick Rooney of the Center on Philanthropy at Indiana University in Indianapolis; during a recession giving typically falls by 1%, he says.
How do you decide where your dollars should go? There are nearly 1.8 million nonprofits collecting donations, according to the nonprofit Chicago-based American Institute of Philanthropy, which rates charities based on how they spend their money. The abundance of options can make choosing a charity harder than selecting a Christmas cookie from the office party platter.
Charitable gifts: A Health section article Monday about gifts of health-themed charitable donations said that the transaction fee going to an online distributor of such donations, CharityGiftCertificates.org, can be as high as 15%. In fact, only 7% plus a 50-cent flat fee goes to CharityGiftCertificates.org; 3% goes to the credit card company and up to 5% to third-party marketers, if involved. And the flat fees charged by other services can represent higher percentages of a gift depending upon the amount given. The article also quoted the founder of another such distributor, Erik Marks of TisBest.org, as saying that if the recipient of the gift certificate never logs on to select a charity, the distributor then keeps the money, spending it as it sees fit. In the case of CharityGiftCertificates.org, unallocated monies go to its Special Kids Fund. The article also quoted Amanda Gamble, an etiquette columnist in Indianapolis, as saying that a gift to a children's health charity is always well-received. However, it omitted her first name and occupation. Additionally, the article said that Internet charity gift-card services started in 2007. Some have operated since 2004.
Charitable gifts: A Dec. 15 article about gifts of health-themed charitable donations said that the transaction fee going to an online distributor of such donations, CharityGiftCertificates.org, can be as high as 15%. In fact, only 7% plus a 50-cent flat fee goes to CharityGiftCertificates.org; 3% goes to the credit card company and up to 5% to third-party marketers, if involved. And the flat fees charged by other services can represent higher percentages of a gift depending upon the amount given. The article also quoted the founder of another such distributor, Erik Marks of TisBest.org, as saying that if the recipient of the gift certificate never logs on to select a charity, the distributor then keeps the money, spending it as it sees fit. In the case of CharityGiftCertificates.org, unallocated monies go to its Special
In 2007, charity gift cards entered the Internet scene, allowing the gift recipient to choose where the dollars go. (Last year, the nonprofit charity gift card distributor TisBest.org helped givers distribute $280,000 to more than 200 charities.)
Here are a few tips on how to pick the best charity stocking to stuff with your dollars and how to make the process a joy for friends and loved ones.
Consider your recipient
Charity donations are best suited for people who have all the material possessions they require. If someone on your list really needs a new pair of pants, get them the pants, says TisBest founder Erik Marks. In addition, select a charity that your recipient will appreciate. When in doubt, Gamble says, a children's health charity is always well-received.
Consult health professionals for recommendations
If you have a particular condition in mind, ask hospitals, doctors and nurses what organizations they respect. "They would know who's doing the important research," says Daniel Borochoff, president of the American Institute of Philanthropy. But make sure to ask if your source is connected to the charity in any way -- you want the advice to be unbiased.
Offer the gift of choice
- Catholic Charities Is Seeking Holiday Help Nov 27, 1999
- Before you give Jul 06, 2008
- If It's for a Good Cause, Let Us Know Jan 11, 1998
