Giving to charity while on a budget
Generosity doesn’t have to break you
You don't have to let a slim budget stop you from giving to charity. Here are ways to do good on limited means:
One strategy is to combine philanthropy and saving by investing in companies that seek to make the world a better place. There are apps that will help you do that. The Stash app, for example, identifies exchange-traded funds and individual stocks that allow you to invest in companies that align with your convictions, from clean energy to workplace equality. You only need $5 to open a Stash account, and you'll pay just $1 per month for a beginner's account.
Another option: Find out if your 401(k) plan offers a socially responsible fund, such as Vanguard Global ESG Select Stock (symbol VEIGX) or Parnassus Mid Cap (PARMX), one of Kiplinger's favorite actively managed noload mutual funds.
Many social media users are bombarded with charitable solicitations. Facebook added a feature in 2017 that allows users to request donations to their favorite charity in lieu of birthday gifts. Depending on how many Facebook friends you have, the posts can be overwhelming. And unless you vet the charities, you have no idea how your money will be used. Donating small amounts to multiple causes may seem like the most generous thing to do, but experts say you can make a much greater impact by limiting your donations to one or two charities.
GoFundMe pitches tend to populate Facebook news feeds as well, and some of these are even more troubling. You're usually prompted to help people or organizations that one of your friends has heard about, but you have no way of knowing if the help is actually needed or if the fundraiser is a scam. In 2017, a couple collected close to $400,000 from donors purportedly to help a homeless man who lent the couple his last $20. All three have been charged with fraud.
If something on your social media feed does catch your attention, do your homework. You can look up charities on Charity Navigator (www.charitynavigator.org) and the Better Business Bureau's Wise Giving Alliance site (www.give.org). Charity Navigator rates charities on financial health and accountability; the Wise Giving Alliance checks out governance, fund-raising, effectiveness and donor privacy. You'll also want to search the internet for complaints and reviews about the charity. If the charity is mostly local, try searching for it on your region's Better Business Bureau website.