Four tips for making the most of your charitable giving

“In difficult economic times when needs are increasing, making good choices with your charitable giving is even more important,” said Elizabeth Myrick, project director, CGR/SmartLink.org. “People are trying to figure out how their donations—no matter the size—can have the greatest impact. Learning from the wise practices of donors and family foundations with a track record in community giving can help.”

Make the most of your charitable giving with these great tips from SmartLink.org:

1. Give locally to organizations with relationships and standing in the community. No one knows the impact of the current economic crisis on a community better than the organizations that work in it. Their services are in high demand and their budgets are most dependent on local, annual support. While longer-term strategies and large-scale efforts are important, today’s financial crisis may require renewed commitment to tackling the immediate needs of your community. According to Nancy Brain, trustee, Frances Hollis Brain Foundation, “Our grant was only for $5,000, but by having the conversation [with the local nonprofit] and looking at how to leverage funds, we were able to make a much bigger impact than we would have if we had just given a grant to the state headquarters.”
   
   
2. Get to know the organization, personally, through a visit or volunteering. Learn about the needs of the community and become informed about the nonprofit organization to determine whether it is reaching people in need, providing quality services, and operating effectively. Try to determine whether the people or families receiving services from the organization would rate it highly. If you are donating at a higher level, you might consider a formal site visit or interview. “Of all of the lessons I learned from the Stern Fund, I would say the most important was the value of conducting in-person interviews,” says David Stern, trustee of the Stern Family Foundation.
   
   
3. Limited funds? Get focused. This may be the year for you, your family or your giving circle to focus very intentionally on just one or two issues, or even one or two community groups. By clarifying your personal aspirations for giving, you can better match a small gift with the organization most suited to make a difference on the issue closest to your heart or most critical to the well-being of your community. By this time next year, you will have a sense of whether your hope was realized, what you—and the organizations—might have done differently, and whether to adjust your future giving.
   
   
4. Give more than money. Bringing together experts and volunteering specialized skills has helped the Lenny Zakim Fund supplement its relatively small grants. In a similar manner, you might consider the non-financial gifts you could share with a nonprofit or community group. Do you have special expertise in accounting, strategic planning, grounds keeping, etc, that would strengthen a neighborhood group? Do you know someone who can help provide the services or influence an organization needs? Your willingness to put your own credibility behind an organization can be extremely powerful—in some cases, more powerful than a single monetary gift. Be cautious, however. Before lending your name, skills or networks to an organization, be sure to ask the organization what kinds of assistance—beyond or in addition to money—would be most helpful.