Valentine’s Day is a great occasion to recall WHY people make charitable contributions. It’s for the LOVE! It’s even in the name of the activity, philanthropy…which means “for the love of mankind”. Oxford defines philanthropy as “the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes.”There is no better time to reflect on why donors give to charity than when the world is filled with heart-shaped everything — balloons, cookies, cards, chocolates and all other types of treats. I hope your thoughts about your charitable giving conjure up a sweet fragrance that can compete with the flowers filling stores (and parking lots) this season.
Bank of America, in conjunction with the Indiana University Lily School of Philanthropy, conducts a survey every other year to study philanthropy among affluent households. I’m always drawn to the section of the study about donor motivations. Why do donors give? The strongest response year after year is “Because you believe in the mission of the organization.” In other words, you love what an organization is doing and you want to support it. The second strongest response, “…you believe your gift can make a difference” also stems from an inward desire to help others. Giving to human service agencies that help others in need, or to colleges and schools to help students reach their full potential, or to local arts organizations to enrich your communityare all ways to express your love for mankind.
I frequently tell donors making a gift to help someone in need, when your heart tells you to do so, is always the right thing, and sometimes it is also tax-deductible. The Federal government and some state governments, want to encourage charitable giving, so they offer an income tax deduction to incentivize giving. Interestingly, when taking all positive responses into account, receiving a tax benefit ranks last among ten motivations for giving in the Bank of America study. It’s on the list for sure, and savvy donors who are trying to be wise stewards of their resources pay attention to opportunities to receive a deduction for their giving, but it is seldom their primary motivation.
Giving to help others is a tradition in America that predates the tax incentive that was established in 1917. Alexis de Tocqueville noted the presence of many voluntary organizations during his visit to America in 1831. These organizations were established, not out of legal mandate, but love of mankind. Governments recognized this activity and sought to encourage it with a codified tax deduction, but rules and regulations always have boundaries. Donors should view those boundaries as the boundaries of the deductibility of a gift, not the boundary of the value of a gift to mankind. For example, giving to the Red Cross to help victims of a disaster is both charitable and deductible. One individual giving money directly to another individual that has suffered from a disaster is equally charitable, but not deductible.
There are no guarantees that a recipient will always make the best use of charity, whether you give directly to them or give through an established nonprofit organization, but that is how love works, isn’t it? Nonprofit organizations work hard to make sure charitable dollars go to those in need, but it can never be perfect because people are not perfect. Perfection is an unrealistic goal. I really appreciate how PATH, a local human services charity in Tyler approaches their work. Some of you may not know that PATH stands for People Attempting to Help. Isn’t that a great name and a great cause? There are no guarantees that the people they are attempting to help will ever find or be able to stay on the path out of poverty. Poverty is very complex, as are the individuals who find themselves struggling with it. But nevertheless, out of love for mankind, PATH will attempt to help. Let Valentine’s Day remind you that giving to charity is an opportunity to express your love of mankind and may be your next best opportunity to give well.
Source: tylerpaper.com
