By BOB CUNNINGHAM
Wishing you a wondrous and fruitful Thanksgiving holiday from surprisingly scenic Palm Springs, Calif. My wife and I are here on a brief get-away, and please accept my apologies for being tardy with this post.
As we enter the holidays, I thought it would be prudent to briefly discuss the ‘giving thanks’ aspect of the season. I believe it’s an important subject to touch on, because many so-called personal finance ‘gurus’ talk about the importance of charitable giving as part of a savvy overall money management strategy.
I support the notion of giving to those in need 100 percent, but I am skeptical of the implications by some that you can tangibly benefit from donating to causes, worthy and otherwise.
The great thing about giving is the intangible positives you derive not only from doing so, but from being in a position when doing so generously makes sense.
Here’s the deal from my standpoint: You should always give if you want to give. You should give to whomever you wish, for whatever cause you deem just and appropriate. But it’s naive to believe that all giving is the same, and for me, getting the most out of each donation – and having the right people benefit from it – is the name of the game.
I know a great many well-meaning folks who give something to everyone, just for the asking. And I mean everybody. From the charitable trust that saves two turkeys from slaughter each Thanksgiving, instead of one, to handing a buck or two to that guy named Chuck who frequents the corner gas station in his dented-up ’93 Honda Accord, always in need of “enough gas to get home” without having even once bought so much as a dram of unleaded with what he’s given.
These people who give are generous souls, and of course it is absolutely their right to give any time they damn well please. But is it the best use of their charitable dollars and cents? Not really.
I’m not saying some charities are more worthwhile than others… well, OK, I confess I am sort of implying exactly that. You may very well disagree, and I respect that. My point is that $10 or $20 sent to, say, St. Jude Children’s Hospital (my favorite charity) or the Wounded Warrior Project (second favorite) is likely to benefit more genuinely deserving people than giving a dollar each to ten folks who are “down on their luck” and working freeway off-ramps.
For one thing, the donations to official charities are much more likely to be used toward the cause they represent. Secondly, those donations are tax deductible if you make enough of them. Helping Willie get a burger… and a beer or, worse, a fix in many cases unfortunately… simply isn’t as wise a choice.
Now, obviously, there are exceptions. There’s a gentleman not far from where I live who is a double-amputee. I see him a lot at the same intersection, and if the light is red when I arrive there, I often give him something. Yes, this contradicts what I just wrote in the preceding paragraph, but the guy has no legs from just above the knees. I figure he needs a break, and the government assistance he is getting is probably far shy of what he realistically needs to live a basic quality of life.
And, truth be told, I made sure his wheelchair doesn’t have curtains to hide underneath the seat. There are con-artists in all forms out there.
Generally, it is savvier and more helpful overall to focus on legitimate organizations. In addition to the two I named above, I like the American Red Cross, American Cancer Society, and the Salvation Army, as well as numerous others.
Before I wrap this up, I have one more point to make: If you’re young and just getting a foothold financially… the type of reader this website is geared towards… I would like to offer the following suggestion:
Don’t give to any charities – not yet, anyway.
What I mean is, in the long run you will be able to do a lot more good and assist a great many more worthy causes if you first take care of your own situation the best you can. It’s like the oxygen mask that falls from overhead during emergencies on commercial flights. Regardless of the airline or the type of plane, the instructions for its use are always the same for folks who have children with them:
Please secure your own mask first, then assist your child with theirs.
Why? Because the effort to help the child first could result in suffocation for both, if the adult passes out and the child panics.
With charitable giving, put on your own financial mask first. Make sure it is snug and secure… that way, you might be in the position to not only help the child (or other worthy benefactor) in the seat next to you, but any needy individuals on the entire airplane…
… So to speak, of course. Thank you for reading.
DISCLAIMER: This post represents the author’s opinions only. In no way should any part of the content of this post be interpreted as official financial advice, nor does it represent an intention to solicit readers into a specific company or investment. Results are never guaranteed. Utilize the information as you see fit, make all money decisions at your own risk.