Give It All You Got

by Helen Vollmer

So, it’s the New Year and we’re all scratching our heads, trying to figure out the new world order. Certainly, we all want to be good stewards of our own dollars in an uncertain economy. And yet, if we’re not careful we may end up taking some short term actions with long term consequences.

Specifically, I’m talking about philanthropy. On face value it makes sense to pull back in 2009 on what and how we’re giving in a recession. On second thought, however, it makes more sense to consider how one’s support in down times can shape our future in new and meaningful ways, including bolstering our economy and simultaneously adding to our sense of fulfillment.

Case in point, a friend of mine recently realized that those purchases she’d recently made during a shopping venture were exactly the cost of supporting one student for a year at Yes Prep, a Houston charter school ranked by Newsweek at one of the best educational programs in America http://www.yesprep.org/. By returning her purchases and donating to the school instead, she is helping not only an individual gain entry to a four year college but also ensuring the community has a stronger workforce for the future.

Instead of just saying no to philanthropy this year, maybe it’s time to consider how research and scholarship dollars in education, technology and healthcare are critical right now in America’s ability to stay in the game as a world power long-term. As, Ron Lieber recently wrote in a New York Times “Your Money” column www.nytimes.com/pages/business/yourmoney, maybe it’s time to “throw the rope back in” to those institutions who have seen their endowments dwindle over the last few months and without help will be shutting down programs or providing fewer scholarships at the very least.

And closer to home, if any of you has been to a hospital ER lately for personal reasons, then you understand first-hand that those miracles you experienced didn’t occur because a fairy godmother waved her wand. It was really the miracle of some anonymous donor who years before made a sizable donation to research how something could be done better, differently or less intrusively. Trust me, your life and others’ lives are vastly better for it.

If you think that total giving typically declines during a recession, think again. During the past 40 years, according to GIVING USA Spotlight, Issue 3, 2008 www.grenzebachglier.com/fundraising_resources/statistics_and_data, charitable giving did not decline significantly during recessionary periods. In fact, total giving has increased in current dollars every year but one since recording began. While the rate of growth is slower in tough years, giving continues to increase in economic downturns. And that’s the good news for all of us.

So how do you determine a philanthropic strategy that will be a wise investment of your time and money?

First, find your passion. Philanthropy is about improving life and helping others. So what do you deeply care about and what matches up with your core values? Where do you really want to make a difference?

Second, get involved. Philanthropy is not just about the money. Volunteers are needed as are in-kind services, especially when funding recedes. Work with organizations and institutions regarding how you or your company’s talents, services and dollars can be leveraged to go further.

Third, develop a long-term giving plan. Once you’ve narrowed down which organization will benefit from your charitable initiatives, then know your giving options. Is this a one-time cash gift? Do you want to establish a charitable gift annuity? Would you consider an estate plan? There are a myriad of options and gift planning professionals will be happy to help accommodate your philanthropic goals. You don’t have to make giving decisions in a vacuum.

Finally, check-in on your investments periodically. Don’t be afraid to ask for updates from the charity or to let your giving plans evolve as times change. Your needs and desires will take turns as will those of a non-profit organization. You should expect a return on your investment—whether that’s a tangible, physical result or simply the warm feeling you get inside when you have helped someone else.

Philanthropy, after all, is really just a fancy word for doing the right thing by your fellow man. The benefits, especially in tough times, belong to all of us.