I have been excited about Giving Tuesday ever since it was created several years ago. Why? Not because I’ve adopted it as the day when I do all my giving, and not because I have an organization that receives extra giving. I’m excited because Giving Tuesday draws attention to one of the three core uses of our money — the one that gets the least attention.
The core ways in which we use our money are: Spend, Save, and Share. Financial educators (like me) don’t talk about “Sharing” nearly as much as we talk about the other two, and yet we should – it’s important. There is debate whether we humans are inherently altruistic, or whether it is something we learn. None-the-less, people who choose to give typically report that they gain some type of psychological benefit or reward when they give, regardless of whether they can give a lot or a little. It “feels good” to give.
It feels even better to give when we know that our gift is appreciated and/or that it makes a difference. When we give gifts to loved ones, we (hopefully) can see that the gift is appreciated. When we give to organizations or causes, it’s not always so easy to tell. When giving to a local organization whose work you know well, you may see evidence of their good work in your community; you may even know some of their board members personally. With large national organizations, you might want to check them out before giving: tools like CharityNavigator.org or the Better Business Bureau’s Wise Giving Alliance (Give.org) can help.
You can also do your own research by checking out the organization’s website to find annual reports of their projects and their impact; you may even be able to check financial statements to see what portion of their funds goes for administration rather than direct service. Another useful step might be a web search for the organization along with a word such as “review” or “complaints” or “scams.”
I am one who finds that it “feels good” to give. I can say that it feels even better to give when I know the organization I’m giving to is using my money wisely. For more information, check out this news item from the Iowa Attorney General.