Contrary to popular belief that men predominantly control philanthropic dollars within a household, a recent survey found that in nearly 90% of high net worth individuals, women are either the sole decision-maker or at least an equal partner in charitable decision-making.” Here is the article, from Barron’s.
I view charitable contributions the same way I view investments. How do I narrow down to a few that deserve my attention? Here are some things I look for when choosing a charity:At least 80% of revenues distributed as program expenses Total overhead* less than 10% of revenues Fund-raising cost less than 10% of revenues Unpaid Board of Directors Reasonable salary for officers and other workers
This year, I focused more on what I call charitable “funds of funds.” These organizations don’t have direct programs, but instead write grants to a variety of qualified charities. A few examples are Robin Hood, which focuses on the New York area, Asha for Education, which supports close to 100 education focused projects in India, Alex’s Lemonade Stand, which benefits pediatric cancer treatment and research, and Susan Komen for the Cure, which raises awareness and funds breast cancer research. Instead of donating heavily to one organization that spends the money primarily toward one cause, donating to funds of funds charities diversifies my charitable investment.
Each organization’s Form 990 is available for public viewing online. The financials of those listed above exceed my criteria for giving. They also pass on my charity Scam-Meter. Finally, these charities are highly rated by Charity Navigator.
More from this contributor:
My Investment Approach Toward Charitable Giving
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First Person: Building a Tax-Advantaged College Fund for My Children