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You are here: Home / Archives for charitable giving

7 Charity Scandals That Should Have Made Headlines—But Didn’t

May 6, 2025 by Travis Campbell Leave a Comment

charity

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Charitable giving represents one of humanity’s noblest impulses, but not all organizations deserve your generosity. While major charity frauds occasionally make national news, many troubling scandals remain largely hidden. Understanding these lesser-known controversies matters because your hard-earned donations should create a genuine impact, not fund executive salaries or fraudulent schemes. These seven charity scandals reveal critical warning signs that can help protect your charitable dollars and ensure your generosity achieves its intended purpose.

1. United Way’s Silent Executive Compensation Crisis

In 2013, United Way Worldwide faced scrutiny when financial records revealed dozens of local chapter executives earning $300,000-$500,000 annually while maintaining relatively high administrative costs. What made this particularly troubling was the organization’s simultaneous public messaging about efficiency and impact. Internal whistleblowers reported that some chapters were spending as little as 60% of donations on actual programs despite claiming much higher percentages.

The scandal received minimal coverage outside industry publications, partly because United Way’s decentralized structure allowed the organization to argue these were isolated cases rather than systemic issues. However, charity watchdogs noted that the pattern of high compensation across multiple chapters suggested broader governance problems that donors deserved to know about.

2. Feed the Children’s Leadership Deception

Feed the Children, once among America’s most prominent international charities, weathered a leadership scandal that received surprisingly little mainstream attention. Founder Larry Jones was ousted in 2009 amid allegations of misusing funds and storing pornography at headquarters, but the deeper scandal emerged in subsequent years. Financial audits revealed the organization had been dramatically overstating its impact, claiming to feed millions more children than documentation supported.

More troubling was evidence suggesting the charity had known about these discrepancies for years while continuing to use inflated numbers in fundraising materials. Despite these findings, Feed the Children continued operations with minimal media scrutiny, and many donors remained unaware of the controversy.

3. National Veterans Service Fund’s Fundraising Shell Game

The National Veterans Service Fund (NVSF) operated for years while spending only 20% of donations on actual veteran services. The organization paid millions to professional fundraising companies, which kept 75-80% of all donations collected. Despite this troubling allocation, NVSF continued receiving donations from well-meaning Americans who believed their contributions primarily supported veterans.

This scandal is particularly noteworthy because the organization legally sidestepped transparency requirements by categorizing fundraising costs in misleading ways on financial statements. This practice continued for over a decade with minimal media coverage, allowing millions in donations to be diverted from veteran services.

4. Wounded Warrior Project’s Hidden Spending Patterns

While some coverage emerged about the Wounded Warrior Project’s spending practices in 2016, the full extent of the scandal received far less attention than warranted. Beyond the widely reported lavish conferences, financial records revealed systematic inflation of program spending percentages through accounting techniques that reclassified marketing materials as “educational program expenses.”

Internal documents showed executives knew donor perception would suffer if spending was reported accurately. Despite leadership changes, the organization continued similar accounting practices with minimal scrutiny, demonstrating how charity scandals can fade from public consciousness before meaningful reform occurs.

5. Central Asia Institute’s Fabricated Schools

Greg Mortenson’s Central Asia Institute gained fame through his bestselling book “Three Cups of Tea,” but investigations later revealed many schools the charity claimed to have built in Afghanistan and Pakistan either didn’t exist or weren’t operational. While some media covered these allegations, the deeper scandal involved the organization’s continued fundraising using these same claims even after internal reports documented the discrepancies.

Financial records showed that in some years, the charity spent more on promoting Mortenson’s books and speaking engagements than on actual school construction. Despite these revelations, the organization continued operations with diminished but still substantial donor support, highlighting how charity scandals often fail to generate sustained accountability.

6. Cancer Fund of America’s Family Enrichment Scheme

The Cancer Fund of America and its affiliated organizations collected over $187 million before being shut down by regulators in 2016. What received insufficient coverage was how the founder, James Reynolds Sr., had installed family members as executives across multiple “independent” cancer charities that functioned as a network of shell organizations.

According to Federal Trade Commission findings, these interconnected entities shuffled money between them to create the appearance of legitimate charitable activity while spending less than 3% on actual cancer patient assistance. Despite the scheme’s massive scale, it received only brief national attention before fading from headlines.

7. Gospel for Asia’s $20 Million Headquarters Controversy

Gospel for Asia, a major international Christian charity, faced allegations of misusing over $90 million in donations intended for impoverished communities in India. While some religious publications covered aspects of the controversy, mainstream media largely ignored revelations that the organization had diverted millions to construct a lavish $20 million Texas headquarters while telling donors their contributions were funding specific overseas projects.

Court documents from a subsequent class-action lawsuit revealed systematic deception in fundraising materials about how donations were being used. The charity eventually settled the lawsuit for $37 million without admitting wrongdoing and continued operations with minimal public awareness of these issues.

Protecting Your Charitable Impact

These charity scandals share common warning signs: excessive executive compensation, misleading marketing, minimal transparency, and resistance to independent verification of results. Before donating, research organizations through independent charity evaluators like Charity Navigator or GiveWell, review their financial statements, and look beyond emotional appeals to understand how your donation will be used.

Remember that genuine charitable impact requires both good intentions and responsible stewardship. By demanding transparency and accountability, donors can help ensure charitable giving fulfills its true purpose: creating meaningful change for those in need.

Have you ever researched a charity before donating or encountered an organization that raised red flags? Share your experience in the comments below.

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Travis Campbell
Travis Campbell

Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.

Filed Under: charitable giving Tagged With: charitable giving, charity accountability, charity scandals, donation fraud, donor protection, nonprofit transparency

Stop The Donations: 9 Donations No Charity Wants From You

May 3, 2025 by Travis Campbell Leave a Comment

charity

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Charitable giving is a cornerstone of community support, but not all donations are created equal. Many well-intentioned donors unknowingly burden charities with items that cost more to process than they’re worth. Understanding what donations to avoid can make your generosity truly impactful rather than creating additional work for organizations already stretching limited resources. Before loading up your car with unwanted household items, consider this guide to donations that most charities would prefer you keep or dispose of properly elsewhere.

1. Expired or Nearly Expired Food Items

Food banks and pantries appreciate nutritious, non-perishable donations, but expired food creates significant problems. According to Feeding America, sorting through expired items wastes valuable volunteer time and resources. Food that’s within a month of expiration often can’t be distributed before it goes bad. Instead, donate shelf-stable items at least six months before expiration, or consider making monetary donations, allowing organizations to purchase exactly what they need.

2. Broken Electronics and Appliances

That microwave that “just needs a small fix” or the laptop with the cracked screen might seem salvageable, but most charities lack repair facilities or technical staff. Non-functioning electronics become disposal problems, costing organizations money to recycle responsibly. If your electronics work perfectly, they may be welcome donations. Otherwise, look for electronics recycling programs or manufacturer take-back initiatives in your community.

3. Heavily Used or Stained Clothing

While clothing donations are generally welcome, items with stains, tears, strong odors, or excessive wear create sorting burdens. Up to 25% of clothing donations cannot be resold in their stores. Before donating, ask yourself: “Would I give this to a friend?” If not, consider textile recycling programs instead of burdening charities with clothing they must discard.

4. Obsolete Media and Technology

VHS tapes, cassettes, floppy disks, and outdated computer equipment rarely find new homes through charity shops. These items occupy valuable storage space and eventually require disposal at the organization’s expense. Most thrift stores now decline these donations outright. Consider specialized recycling services for obsolete technology instead.

5. Incomplete Puzzles, Games, and Toys

Puzzles missing pieces, board games with incomplete components, or toys without essential parts frustrate both charities and potential recipients. Volunteers must spend time verifying completeness, and incomplete items ultimately end up in landfills. Count the pieces before donating games or puzzles, and only donate complete sets.

6. Used Personal Care Items

Partially used toiletries, makeup, and personal care products pose hygiene concerns and are almost universally rejected by charities. Unopened items may be declined if they’re not sealed in their original packaging. Instead, consider donating new, unopened personal care products, often in high demand at shelters and community service organizations.

7. Outdated or Damaged Furniture

Large, bulky furniture in poor condition creates significant logistical challenges for charities. Items with rips, stains, pet damage, or broken components require expensive repairs or disposal. Many organizations now charge fees to accept furniture donations or have strict quality guidelines. Before donating, honestly assess if your furniture is in good, usable condition.

8. Recalled or Unsafe Baby Items

Baby equipment like cribs, car seats, and strollers is subject to frequent safety recalls and evolving safety standards. Most reputable charities cannot accept car seats that are over six years old or items that don’t meet current safety regulations. Check the Consumer Product Safety Commission for recall information before donating children’s items, and consider that many baby items have expiration dates for safety reasons.

9. Random Household Miscellany

The miscellaneous category of “stuff” – odd kitchen gadgets, promotional items, random decorative objects, and accumulated knick-knacks – creates sorting nightmares for charity workers. These items rarely sell and often end up discarded. Before donating, consider whether the item serves a practical purpose that would make it desirable to others.

Making Your Donations Truly Helpful

The most valuable donation you can make to most charities isn’t stuff at all – it’s money. Financial contributions allow organizations to address their most pressing needs efficiently. If you prefer donating goods, call ahead to ask what items are currently needed. Many organizations maintain wish lists on their websites, detailing the most helpful donations.

Remember that charitable donations should lighten burdens, not create them. By being thoughtful about what you donate, you show respect for both the organizations you’re trying to support and the people they serve. Quality always trumps quantity when it comes to charitable giving.

Have you ever been surprised to learn that a well-intentioned donation wasn’t actually helpful? Share your experiences or questions about responsible giving in the comments below.

Read More

9 Reasons to Rethink Giving to Goodwill

6 Life-Changing Organizations You’ve Probably Never Donated To But Should

Travis Campbell
Travis Campbell

Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.

Filed Under: charitable giving Tagged With: charitable giving, charity donations, donation etiquette, donation guidelines, responsible giving, thrift store donations

9 Reasons to Rethink Giving to Goodwill

February 13, 2025 by Latrice Perez 1 Comment

GoodWill

Image Source: 123rf.com

Donating used items to Goodwill has long been a popular way for people to clear out their homes while doing a good deed. However, as more people look for ways to ensure their charitable contributions are truly helping those in need, it’s important to rethink whether Goodwill is the right destination for your donations. While Goodwill may seem like an obvious choice, there are several reasons why you might want to explore alternatives that have a more direct and positive impact. Here are 9 reasons to reconsider giving your used items to Goodwill.

1. Unclear Profit Motive

Despite its nonprofit status, Goodwill operates in a way that mimics for-profit businesses. The organization relies heavily on reselling donated goods, with some locations turning a significant profit. In fact, many Goodwill executives earn six-figure salaries, which raises questions about where the money actually goes. If your goal is to help people in need, you might want to reconsider where your donations are going, especially when you learn that much of the revenue from sales doesn’t necessarily directly support the local communities in need.

2. Minimal Impact on Local Communities

Goodwill does offer employment and job training programs, but much of its revenue is derived from selling donated items in bulk or shipping them overseas. This limits the direct impact of your donation on the local community. If you’re looking to make a more immediate difference in your own neighborhood, consider donating to local shelters, food banks, or organizations that focus on helping people in your area. These smaller, more community-driven groups ensure that your donations directly benefit those who need it most in your region.

3. Profit-Driven Resale Model

One of the main ways Goodwill generates revenue is by selling donated items at a markup, which doesn’t always benefit low-income families. Many donors believe they’re giving to those in need, but often, items are resold at prices that are not affordable to the very people the charity is supposed to be helping. If you want your donations to reach those in need without a profit margin attached, look for local organizations or initiatives that provide goods for free to individuals who can’t afford to purchase them.

4. Environmental Concerns with Waste

Environmental Waste

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Though donating to Goodwill might seem like an eco-friendly option, much of what they receive often ends up in landfills. Due to the sheer volume of donations, Goodwill sometimes can’t process or sell all the items it collects, resulting in waste. Donating to smaller, environmentally conscious organizations that focus on recycling, repurposing, or upcycling can ensure that your donations are used in a way that reduces waste and benefits the environment. These alternatives often have more targeted goals in sustainability.

5. Lack of Transparency

Goodwill operates as a nonprofit, but its operations often lack transparency. Donors are typically unaware of how much money goes toward charitable programs or what impact their contributions have on local communities. Without a clear breakdown of where the money goes, it’s hard to know if your donations are truly benefiting the people you intend to help. If you’re looking for a charity that provides clear reports on how funds and donations are used, consider supporting organizations that prioritize transparency and give you detailed information on their operations.

6. Inefficient Logistics and Overwhelming Supply Chain

With its vast network of stores and donation centers, Goodwill often faces logistical challenges in handling the sheer volume of donations it receives. This can lead to inefficiencies, where items aren’t processed in a timely manner or are ultimately discarded. Supporting smaller local charities or grassroots organizations can ensure that your donations are handled more efficiently and directly benefit the community. These smaller organizations are typically more agile and can get your items into the hands of those in need faster.

7. Supporting Local Communities Directly

When you donate to local charities or community-based initiatives, your contributions have an immediate, direct impact on people in your area. Smaller nonprofits or community groups may have fewer resources than larger organizations, but they work tirelessly to help individuals in need. Redirecting your donations to these smaller organizations can have a more profound effect on your local community, ensuring that your generosity reaches those who are closest to home.

8 Alternative Donation Options for Specific Needs

Not all donations are equal. Many of the items you give to Goodwill might be better suited for specific charities. For example, if you have professional clothing, donating it to organizations that assist job seekers in entering the workforce can have a much more significant impact. Similarly, household goods can be more useful if donated to shelters for survivors of domestic violence or homelessness. Giving your items to causes that directly align with the needs of specific groups ensures that your donations reach the people who will benefit most.

9. Online Donation Platforms Offer Direct Giving

Online donation

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The rise of online platforms like Freecycle, Nextdoor, and Buy Nothing groups allows you to directly connect with individuals in need in your community. By using these platforms, you can offer your items to people who are specifically looking for them. This personal connection makes your donation feel more impactful, as you’re directly helping someone nearby. Online platforms also allow you to target specific needs, from furniture to clothing, ensuring that your donation goes to the right person at the right time.

Think Beyond Goodwill

While Goodwill may have been your go-to donation spot for years, there are many reasons to reconsider where your items are going. By donating to smaller, local organizations, being more transparent about where your goods are going, and finding new ways to donate, you can make a far more significant and direct impact. Whether it’s through local shelters, online platforms, or more specialized charities, your donations have the power to do so much more when they are given with intention.

Have you ever donated your used items to Goodwill? Have you ever purchased anything from Goodwill? Let us know in the comments below.

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Latrice Perez

Latrice is a dedicated professional with a rich background in social work, complemented by an Associate Degree in the field. Her journey has been uniquely shaped by the rewarding experience of being a stay-at-home mom to her two children, aged 13 and 5. This role has not only been a testament to her commitment to family but has also provided her with invaluable life lessons and insights.

As a mother, Latrice has embraced the opportunity to educate her children on essential life skills, with a special focus on financial literacy, the nuances of life, and the importance of inner peace.

Filed Under: charitable giving Tagged With: charitable giving, charity options, community support, donating to charity, donation alternatives, giving back, goodwill donations, impact-driven donations, local nonprofits, sustainable giving

How You Spend and Give Your Money for Balanced Financial Plan

July 16, 2024 by Vanessa Bermudez Leave a Comment

How You Spend and Give Your Money Creating a Balanced Financial Plan

Canva

How you spend and give your money is crucial in creating a balanced financial plan. Achieving financial stability and meeting your goals requires strategic planning and mindful decisions. Here are ten key aspects to help you craft a balanced financial plan that aligns with your values and aspirations.

1. Setting Clear Financial Goals

Start by defining your financial goals, both short-term and long-term. These could include saving for a home, retirement, or an emergency fund. Clear goals provide direction and motivation for your financial decisions. Break down larger goals into smaller, manageable steps. Regularly reviewing and adjusting your goals ensures you stay on track.

2. Budgeting for Essentials

Budgeting is crucial for managing how you spend and give your money. List all your essential expenses, such as housing, utilities, groceries, and transportation. Allocate a portion of your income to cover these necessities first. Use budgeting tools or apps to track your spending and stay within your limits. Prioritizing essentials helps prevent overspending and financial stress.

3. Allocating for Savings

Incorporating savings into your financial plan is essential for future security. Aim to save at least 20% of your income each month. Automate your savings to ensure consistency and reduce the temptation to spend. Consider various savings goals, such as an emergency fund, retirement, and major purchases. Regular savings build a financial cushion for unexpected expenses and long-term goals.

4. Strategic Debt Management

Strategic Debt Management

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Effective debt management is a key component of a balanced financial plan. List all your debts, including credit cards, loans, and mortgages. Prioritize paying off high-interest debt first to reduce overall costs. Consider debt consolidation options to simplify payments and lower interest rates. Developing a repayment strategy helps you become debt-free faster.

5. Smart Investment Choices

Investing wisely can significantly boost your financial growth. Research different investment options, such as stocks, bonds, and real estate. Diversify your portfolio to spread risk and increase potential returns. Consult a financial advisor to create an investment strategy that aligns with your goals and risk tolerance. Regularly review your investments to ensure they perform well.

6. Charitable Giving

Incorporating charitable giving into your financial plan reflects your values and supports causes you care about. Decide how much of your income you can allocate to donations. Research organizations to ensure your contributions make a meaningful impact. Consider setting up automatic donations to maintain consistency. Charitable giving can provide personal satisfaction and community benefits.

7. Managing Lifestyle Expenses

Balancing lifestyle expenses is crucial for maintaining financial health. Identify non-essential spending, such as dining out, entertainment, and hobbies. Set a reasonable budget for these discretionary expenses. Look for ways to enjoy activities affordably without compromising your financial goals. Mindful spending helps you enjoy life while staying financially responsible.

8. Planning for Taxes

Planning for Taxes

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Tax planning is an important aspect of managing how you spend and give your money. Understand your tax obligations and explore ways to minimize your tax burden legally. Utilize tax-advantaged accounts like IRAs and 401(k)s for retirement savings. Keep thorough records of your income, expenses, and deductions. Consulting with a tax professional can optimize your tax strategy.

9. Reviewing and Adjusting Your Plan

Regularly reviewing and adjusting your financial plan ensures it stays relevant to your changing needs. Set aside time each month to evaluate your budget, savings, and investments. Make adjustments based on life changes, such as a new job, marriage, or having children. Flexibility in your financial plan allows you to adapt and stay on course. Continuous improvement is key to financial success.

10. Seeking Professional Guidance

Professional financial guidance can enhance your financial planning efforts. Financial advisors, accountants, and planners can provide expert advice tailored to your situation. They can help you navigate complex financial decisions, from investing to estate planning. Regular consultations ensure your financial plan remains effective and aligned with your goals. Professional support can be invaluable for achieving long-term financial stability.

Achieving Financial Balance

Creating a balanced financial plan requires careful consideration of how you spend and give your money. By setting clear goals, budgeting wisely, saving consistently, and seeking professional advice, you can achieve financial stability and meet your aspirations. Regularly reviewing and adjusting your plan ensures it remains effective and aligned with your evolving needs. Embrace these strategies to build a secure and fulfilling financial future.

Vanessa Bermudez
Vanessa Bermudez
Vanessa Bermudez is a content writer with over eight years of experience crafting compelling content across a diverse range of niches. Throughout her career, she has tackled an array of subjects, from technology and finance to entertainment and lifestyle. In her spare time, she enjoys spending time with her husband and two kids. She’s also a proud fur mom to four gentle giant dogs.

Filed Under: money management Tagged With: Budgeting Tips, charitable giving, Debt Management, Planning, Smart Investments

15 Things Smart People Only Leave to Charity in Their Wills

April 8, 2024 by Teri Monroe Leave a Comment

writing will

While it is most common to make charitable donations throughout your lifetime, smart people understand the benefits of leaving contributions to charity in their will. Writing charities in your will not only feels altruistic and may ensure your legacy, but there are also significant tax benefits for the estate and your heirs.

Charitable bequests, whether assets or items, are typically deductible from the estate’s taxable income, reducing the overall tax burden. While many people leave financial donations to charity in their will, many other surprising things can be left to charity. Here are 15 things smart people only leave to charity in their will.

1. Money and Financial Assets

donating to charity in will

Cash, stocks, bonds, or other financial assets are commonly bequeathed to charitable organizations to support their missions and programs. When leaving stocks and bonds to charity in your will, you can allocate all or some of the assets to the charity of your choice.

2. Real Estate

Donating home to charity

Property such as houses, land, or commercial buildings can be left to charities to use directly or sell for funding their activities. Leaving your home to charity can also lessen the burden on children if they do not wish to keep your house.

3. Artwork

donating art charity will

Valuable paintings, sculptures, or other artwork may be donated to museums or arts organizations to enrich cultural heritage and support the arts. However, not all museums will accept your art, so planning is necessary.

When the museum receives your collection, your estate will receive a tax deduction based on the collection’s current valuation.

4. Season Tickets

donate season tickets

Many charitable organizations use ticket donations to raise money for their organizations through silent auctions. Leaving your season tickets to your favorite charity could put them to good use.

5. Vehicles

donating vehicle charity will

Cars, boats, or other vehicles can be donated to charitable organizations, which may use them for their operations or sell them to raise funds. Most people wouldn’t consider leaving a car to charity, but many organizations like Cars for Kids run their entire charity on car donations.

6. Jewelry

donating jewelry charity will

Donating jewelry to charity can be beneficial not just for its monetary value, but in some cases for its historical significance. If your fine jewelry is antique, you may consider donating it to a museum.

7. Collections

stamp collection donated in will

Whether it’s stamps, coins, books, or other collectibles, individuals sometimes leave their collections to charities that can benefit from them, such as libraries or historical societies.

8. Personal Property

donating furniture charity will

Furniture, antiques, household items, and other personal belongings may be donated to charities that support individuals in need. Organizations like Goodwill and Salvation Army will pick up furniture from your home. Donating your furniture may be especially helpful if your heirs plan to sell your home.

9. Life Insurance Policies

life insurance left to charity

Some people designate charitable organizations as beneficiaries of their life insurance policies, providing financial support to the organizations upon their passing. To do so, you must notify the charity of your choice that they are a beneficiary ahead of time. Some insurers don’t allow this, so check to see if this is possible.

10. Retirement Accounts

IRA charity

Individual Retirement Accounts (IRAs) or other retirement savings accounts can be left to charities, potentially providing tax benefits to the estate and supporting charitable causes. Donating to a charity in this way in your will is also beneficial to the charity since they don’t have to pay income tax on any of the proceeds.

11. Business Interests

business interests to charity

Entrepreneurs and business owners may leave shares of their company or other business interests to charitable organizations, contributing to causes they care about.

12. Intellectual Property

donating intellectual property charity will

Copyrights, patents, or royalties from books, music, or other creative works can be assigned to charitable organizations, benefiting them long-term.

13. Donor-Advised Funds

donor-advised fund

A donor-advised fund is an account created specifically for donations to charity. To set this up, you first irrevocably contribute assets such as cash, stock, real estate, or private business interests to the fund. Then, you and your family can make grants to your chosen charities while you’re still alive and after you die.

Assets in the fund may grow over time, making more money available for the charity of your choice. You also receive a tax write-off in the year the gift is made. A donor-advised fund is also appealing because the list of charities that benefit can be changed. According to the National Philanthropic Trust, donor-advised funds held $234.06 billion in assets in 2021.

14. Animal Assets

Pet owners may leave assets or set up trusts to ensure the care and well-being of their pets, with any remaining funds going to animal welfare charities.

15. Education Funds

educational funds will

Scholarships, grants, or educational endowments can be established in your will to support students in need or educational institutions you care about, such as your alma mater.

Benefits of Writing Charities into Your Will

donating to charity will

Leaving items to charity in your will is a meaningful and financially smart way to leave a legacy. Whether supporting humanitarian causes, advancing education and the arts, or preserving the environment, charitable bequests allow individuals to continue their philanthropic efforts beyond their lifetime. Smart people leave more than just money to charity in their wills, but instead understand the full gamut of possible donations.

Due to the complex nature of estate planning, it’s always a good idea to consult a legal professional to walk you through the best way to make charitable donations in your will.

Read More

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Photograph of Teri Monroe
Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. Teri holds a B.A. From Elon University.  In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: charitable giving, Personal Finance Tagged With: Charitable donation, charitable giving, Estate planning

Hero of the Week! – You.

December 19, 2011 by Joe Saul-Sehy 3 Comments

I usually reserve Monday for our Boner of the Week! post, in which I discuss an outrageous financial event or statement in the media. But in the spirit of the holiday season, today we’re turning in a different direction: random acts of kindness.

It’s a rare day when I’m happy when reading the news. It’s always politicians fighting, a celebrity has died or they’ve discovered drugs on a professional sports hero. So depressing. Friday, though, I was incredibly heartened when I read that people are randomly and anonymously paying off people’s layaway bill at K Mart and Walmart. Is it true that people, en masse, are taking up the reins and helping complete strangers pay their layaway bill?

It appears that it is. And it seems it’s going viral. Not only is this random generosity being chronicled in the Dayton Daily News above, but it’s appearing in newspapers across the nation

This is how charity should work. It’s exciting to know that people are donning the mask of anonymity and helping out people in need without expecting praise or financial compensation in return. Does this happen much? Are we, as a nation, charitable? Do we often help out complete strangers?

The quick answer?  Kind of.

Charitable Giving Around the World


This charitable giving index heat map, created by the Charities Aid Foundation, displays country-by-country ranking in the area of giving. Canada is the third most giving country overall, while the United States ranks fifth.

Digging Into the Charitable Giving Numbers

When it comes to gifts of money, 64 percent of Canadians and 60 percent of Americans hand over cash to charities. The Netherlands is the leader in this sub-category, with 77 percent of people gifting money to charities.

The numbers are reversed when it comes to giving time. 39 percent of the U.S. population and 35 percent of Canadians volunteer time for an organization. The leader? Turkmenistan, where a whopping 61 percent of citizens gave time.

What if someone is a complete stranger, such as the case in the K Mart an Walmart incidents? There’s some relatively good news in this area. 68 percent of Canadians answer that they have helped someone they don’t know, as compared to 65 percent of those in the United States. The leader is Liberia, at 76 percent.

If you’d like to dig further into charitable giving data, here’s a helpful chart at the Guardian website.

What does this data mean?

To me, it means that in the United States and Canada, we’re doing a fair job of giving, but we could be more charitable. We’re being soundly beaten by other countries in volunteerism, gifts of cash, and gifts to strangers.

Still, we’re among the leaders in most categories. This makes sense because the GDP of both the United States and Canada are high enough that you’d expect a similarly high level of charitable contributions. It’s exciting to see the number of people who donate time and give to strangers. At a time when many people are struggling, we’re still finding ways to go out and help in person, or to give to people who we may never meet again.

This random act of K Mart and Walmart kindness is particularly awesome to me because there is little chance that someone who performs these acts would even answer a survey to create the data above. This is completely anonymous giving, which makes it exciting.

Here’s a few of the reasons I love this story:

  1. No government mandated it, or told us that we’d all be taken care of. We’re actually taking care of each other without threat, payment or promise of acknowledgement.
  2. Although charitable contributions are tax deductible, people are waiving their right to claim this good deed for a tax break “profit.”
  3. The snowball effect is happening. As one person reads it, they get fired up and also give. You don’t need to come up with a new strategy or “neat” giving idea. Here’s a wonderful way to help a family.

The Potential Downside

I hope this random-acts-of-kindness outbreak doesn’t adversely effect donations to large, established charities. These organizations are well-oiled machines, and money you place in their capable hands is distributed only after careful due diligence in most cases.

I also hope that these people who are the random beneficiaries of this kindness use this opportunity to pull themselves up and create a better life. Instead of purchasing gifts they could pay off a credit card, or fix an important automobile that helps them keep their job.

I want this random giving to continue, but I don’t want it to go unrewarded. I’m not hoping some kids have a nice holiday season. I’m hoping their parents are able to use this as an opportunity to experience the true hope of the holiday.

What are you going to do?

First, I’m going to echo the call of many others. I’m going to focus on my giving pattern this holiday season. I’m going to volunteer time over the next few weeks to people and organizations that need my help. In fact, my children are already leaders in this area, helping out a local shelter on a weekly basis. It’s time for me to join them.

As a blogger, I’m hoping to ring the bell on this idea of random acts of charity. I hope we’re all able to help someone who could use a hand. All we need to do is think for a moment about whether it’s money, time or a gift to a stranger that is most important in our world.

Which is it for you? Does this “viral” campaign move you to give differently? What’s your next charitable act? Are you going to be the stranger giving some family a layaway present they didn’t expect?

If you’re going to do a random act, please share with us in the comments below….not for a pat on the back, but to share with other potential “random” gift-givers your ideas. I think we can feed off each others gifts to do better ourselves.

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Photo of Joe Saul-Sehy
Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/

Filed Under: charitable giving, irrelevant stories, Meandering Tagged With: anonymous giving, Canada, charitable giving, charitable tax break, Charities Aid Foundation, charity, Christmas and holiday season, KMart, United States, viral charitable giving, Wal-Mart

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