How much should I give?

This is a question we hear a lot. The easy answer is: "I don't know." That's because this is an individual decision. There are no specific guidelines for what is "right."

Over the years, many people and/or religions have suggested that a minimal amount should be 10%. Others have suggested that the more blessed you are the greater percentage you should give. Claude Rosenberg in his book, Wealthy and Wise, suggests your giving should be based on your net worth not your income. Each one may be appropriate to you at specific times in your life.

Frankly, the amount is not nearly as important as your motivations and the intentions of your heart. Giving can bring unspeakable joy and satisfaction or it can bring heartache and disappointment. We want you to experience the joy and satisfaction that comes when your giving matches who you are and your interests. This is why the Journey to Significance™ process is so important. Once you know why you want to give, then you can begin to address the how much question.

For a quick analysis to determine what you can give away using Claude Rosenberg's theory, click here.

How do I know who is worthy of my support?

Nonprofits for the most part desire to do a good job. You should first ask the organization you're considering supporting for information about their organization and programs; including their Form 990 IRS report, an audited financial statement, a list of their Board Members, and any other descriptive materials. These materials will provide you with enough information to determine if the organization is a likely candidate for support.

Second, you can check with a variety of "watchdog" organizations such as the Better Business Bureau, the National Charities Information Bureau, the Evangelical Council for Financial Accountability and a number of others that are listed under the links section of the website. Each one of these organizations reviews nonprofits based on a specific set of criteria and have already performed a great deal of legwork for you.

Lastly, you can also talk with your personal network of individuals to see if they have personal experience with the organization. These contacts can give you personal insight into their experience with the organization and any possible areas of concern that they have addressed.

How should I evaluate an organization?

Often the question most people are really asking when they want to know how to evaluate an organization is: "How do I know if this is the right organization for me to support?"

The first step is for you to evaluate you. You see we have found that in order to determine the appropriate organization you must first identify and develop your own expectations and criteria for what you hope to achieve in your giving. The difference between expectations and reality is usually the measure of disappointment.

Our Journey to Significance™ process will assist you in determining what organizations will best fulfill your interests by helping you learn what is really your heart's desire and the areas where you really want to make a difference. When you have determined your success indicators you can then match them with the organizations' goals and objectives.

What options are available to make the most of my giving?

Every individual's situation is unique - including yours. You should get advice from your financial planner, attorney, accountant, and your other professional advisors. There are numerous options for executing your giving including: Charitable Remainder Trusts, Charitable Lead Trusts, Gift Annuities, outright gifts, life insurance gifts, and bequests. You can also use a community foundation or establish your own private foundation. These financial advisors can help you determine what is the best vehicle in your particular instance.

That's where we come in as well. We provide a number of services that you can utilize that will help you put your giving plans into action in a way that not only helps you achieve significant joy and satisfaction but that has the results you intended to achieve.

What is a private foundation and how can I utilize one?

A private foundation is a tax-exempt, nonprofit entity that allows you to continue to distribute your charitable gifts while maintaining a measure of control over your assets. Your family can be involved with you in this process and continue your legacy after your death.

There are a number of restrictions that apply for you to have the benefits of a private foundation. Among them is the requirement to distribute at least 5% of your assets, a 2% excise tax on investment income, legal and administrative requirements and public disclosure of activities. Your financial advisors will be able to determine if a private foundation is the way you should go with your estate planning.

What is a Community Foundation and what are the advantages of utilizing one?

Community foundations pool funds from individuals to meet community needs. There are distinct advantages to utilizing a community foundation such as:

• Anonymity - you get to choose how much information you want to disclose. Some donors choose to give in anonymity others want to be more visible. A community foundation provides you with the option (unlike a private foundation).
  
  
• Tax benefits - Because there is significant interest by the government to promote community foundations, they have provided several advantageous tax benefits including:
  • Your gift of stocks or property is valued at current levels
  • Current year deductions of:
    
    
    • Up to 50% of taxable income for cash gifts;
    • Up to 30% of taxable income for appreciated property.
      
      
• There are no start-up costs involved in setting up a fund within a community foundation.
  
  
• Unlike a private foundation there is no minimum annual giving requirement.
  
  
• There is also no excise tax.

What is a donor advised fund?

A donor advised fund could be set up under a community foundation, which under certain restrictions allows you to make recommendations as to the distribution of the corpus. The ultimate decision must rest with the trustees of the foundation under IRS guidelines. You can usually have a Distribution committee made up of family as your selection to assist you in making those recommendations.

Where can I find information about specific charities?

You can use the excellent resources we have listed under links/nonprofit research and evaluation organizations. You can also contact the charities directly. They are required to give you access to their form 990 IRS reports. www.guidestar.org is a good starting place to view this information.

I've had problems in the past with gifts "going south." How do I improve my communication?

Your personal style is unique. The Journey to Significance™ process can help you understand how you communicate best and provide some hints about what may hinder you from effective communication. We've found that in many instances, gifts that have "gone south" (i.e. not met your expectations) are the result of not clearly agreeing upon intended goals or success factors.

Personal contact with representatives of the nonprofit can establish acceptable communication channels. Depending on the size of the organization they may be able to establish feedback mechanisms. Clear, sometimes frank, discussions about your expectations and requirements will go a long way toward ensuring positive communication with the organizations you support.

Do I really need an estate plan?

Estate planning is not just for the extraordinarily wealthy. It's for everyone. A good estate plan will help you provide for your family in both the present and future as well as provide the resources for increased charitable contributions. There are a lot of resources available to help you develop an estate plan. We've included several options in our links section in addition to those in your area.

If you have any specific questions regarding your giving, please Ask the Coach. We'll gladly respond to your questions in a timely manner. We will also continue to update this section with those questions that are on your mind, so please continue to check back often.