Contributing to Philanthropy

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Those who follow charitable giving know that a week rarely passes without news of a megadonor’s eight- or nine-figure philanthropic gift. Such donations are vitally important to our colleges and universities, hospitals, research facilities, and arts institutions. They are pivotal in lifting us as a society.

Downtown’s Walt Disney Concert Hall, an icon of Los Angeles, would not have been possible without the generosity of the Disney family, which contributed more than $100 million toward its construction. In addition to those lead gifts were thousands of donations from project supporters of ordinary means whose love for music and the city spurred them to give to this transformative building.

Put another way, if megagifts are the building blocks of philanthropy, then smaller contributions from a large number of other donors are the mortar.

As a philanthropy and nonprofit professional of more than 30 years, I know that each of us can make a difference in improving our world. Philanthropy is something everyone can do. It begins, simply enough, with a desire to help rebuild our world.

As a tumultuous 2016 comes to a close, this is an opportune time to reflect on how events have affected us, our families, and our society, and to consider how we can be personally engaged in being charitable – in Hebrew the word is chesed, an act of kindness.

Here are five tips on how donors can make a difference:

• Find causes that speak to you. Ask yourself what you can contribute to these causes – financially, volunteering your time, or both – to make a meaningful impact. Think about acting collaboratively with friends or family members to leverage your resources with the power of collective action. Consider joining a local giving circle; addressing pressing societal issues affecting women, children and families; participating in community activities such as Big Sunday, which organizes hundreds of volunteer opportunities; or crowdsourcing or other online campaigns. The viral success of the ALS Ice Bucket Challenge, for example, resulted in more than $100 million in contributions which made a huge impact on ALS research, services, and public awareness.

• Embrace volunteering. One of society’s greatest and earliest movements, volunteerism is enormously gratifying. Locally, we are blessed with a groundswell of grassroots charities, many in the form of startups by social entrepreneurs inspired to solve an unmet need. These can benefit not only from your financial support but also from your ideas and expertise – in fundraising, marketing, or organizational development – and through the simple act of introducing them to others who might also be passionate about their work.

• Maintain focus. Everyone, from those making gifts of a few dollars or hours to megaphilanthropists, should focus their charitable activity. At the Jewish Community Foundation of Los Angeles, where I am privileged to head philanthropic services, we emphasize this when counseling our donors. Identify the causes or areas of interest most meaningful to you and strive to make the greatest impact possible with the resources available to you. This will mean saying no to worthy organizations, but this focus can result in greater satisfaction and involvement, and will enable the charity you support to count on and benefit from your long-term involvement.

• Ensure your money is spent wisely. This begins with the personal connection and focus discussed above. Next, do your homework. Helpful online resources such as Charity Navigator and Guidestar enable you to identify nonprofit organizations that are well-managed and put their charitable dollars into impactful programs. Community foundations, for example, advise their donors on identifying best-in-class nonprofits. This gives you confidence that your charitable dollars are going to responsible stewards.

• Open a donor-advised fund. A donor-advised fund is one of the smartest ways to enhance your philanthropy while providing flexibility and convenience. DAFs are administered locally by community foundations, including the Jewish Community Foundation and the California Community Foundation, and nationally by investment management firms such as Fidelity and Schwab. They can be created with as little as $5,000 in cash, securities, real estate, and other appreciated assets. With a DAF you can place all your charitable dollars in one account and receive an immediate fair market value tax deduction on the assets you gift to it. As the term “donor advised” indicates, you recommend grants to causes you choose, with no time limit on when to make those gifts and no minimum annual distribution requirements.

Philanthropy expert and author Danny Siegel has a great saying: “Philanthropy is where heaven and Earth touch.” By following these simple rules of thumb, your charitable giving will become much easier and, without question, can be one of the most fulfilling parts of your life.

Dan Rothblatt is senior vice president of philanthropic services at the Jewish Community Foundation of Los Angeles.

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