{"id":108,"date":"2016-12-08T20:54:04","date_gmt":"2016-12-08T20:54:04","guid":{"rendered":"http:\/\/www.changepath.com.au\/blog\/?p=108"},"modified":"2016-12-08T20:54:04","modified_gmt":"2016-12-08T20:54:04","slug":"how-to-give-money-over-the-holiday-season","status":"publish","type":"post","link":"https:\/\/www.changepath.com.au\/blog\/2016\/12\/how-to-give-money-over-the-holiday-season\/","title":{"rendered":"How to give money over the holiday season"},"content":{"rendered":"

Christmas, the saying goes, is the season for giving. While the giving of gifts is a relatively recent invention <\/a>(post-1880), the spirit of generosity is now inseparable from the holidays. A third of people say that they are more likely to give a donation to charity over the festive season<\/a>. This willingness to share and connection with our fellow human beings is indisputably a wonderful thing. But with so many ways to give, it\u2019s not always easy to know what the best ways are. Here\u2019s some things to keep in mind.<\/p>\n

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Where you donate matters<\/h1>\n

Charities have come up with a huge variety of different ways to raise funds in connection with the holidays. Some of them are better than others, however.<\/p>\n

Online<\/h2>\n

From a charity perspective the best way is almost certainly a direct donation. Most charities will have some kind of online or phone donation option, and these are almost certainly the fundraising option that costs charities least. It\u2019s worth noting as well that recurring donations are far more valuable to charities, if only because they\u2019re a stable and reliable source of income in an industry sorely lacking in them.<\/p>\n

Street donations<\/h2>\n

Chuggers are everyone\u2019s favourite punching bag in the charity space. Nobody likes being approached by them when they\u2019re just looking to go quietly about their business. Yet because they are a sustainable source of long-term income, charities use them. Chuggers are a vital part of many charity\u2019s revenue streams. But for you, the discerning donor, they\u2019re not a great way to donate. Having people on the streets is labour intensive, so it\u2019s costly for the charity. A good proportion of your donation will go straight to the company running the<\/p>\n

Charity balls<\/h2>\n

The holidays also seem to coincide with party season. Events can be an excellent way to raise money for charity, but be careful. The more glitzy the event, the more expensive it is to run. Charities wouldn\u2019t do it if it wasn\u2019t helpful, of course, but be aware that a significant proportion of the money raised on the night goes to pay for all the fancy food and wine and entertainment. Small events, especially community-organised ones, are often much more efficient at passing money on (but earn less individually).<\/p>\n

Holiday cards\/gifts<\/h2>\n

Charity holiday cards are also a significant donation strategy. These are actually a relatively good way to give money, as the charity can generally make a fair margin on the cards and they also act as promotional material. Be wary if you\u2019re not buying cards directly from the charity themselves, though \u2013 the proportion of the purchase price that goes to the charity can vary wildly. 25% is a good minimum benchmark.<\/p>\n

Volunteering is donating too<\/h2>\n

Your time can be more valuable to a charity than any amount of money you give them. There are a range of ways you can help, from running fundraisers at your workplace, to traditional soup-kitchen style volunteering, to donating your specialist skills and expertise. Ask the charity of your choice and they will have a range of ways for you to get involved.<\/p>\n

Volunteering isn\u2019t just for Christmas, though. Unlike donations, charities can\u2019t \u201cstore up\u201d volunteering until they need it. Often, they will get a big uptick in volunteering during the holidays that then disappears for the rest of the year. This feast or famine situation can give charities a serious headache. So when you volunteer, commit to doing so for at least a few months after the holiday period \u2013 it will be a lot more valuable to the charity, and you\u2019ll get a lot more out of it as well.<\/p>\n

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How you donate matters<\/h1>\n

It’s not just the method you use to give money, there’s a few other things to keep in mind to make your donation most effective.<\/p>\n

Don\u2019t be specific<\/h2>\n

In general, it\u2019s far better to let charities decide where your donation should be spent rather than being prescriptive. The more specific donors are, the more hamstrung the charity will be and the less strategically they can plan. For example, if a charity wants to run an exciting new program but all the donations are tied to specific issue, they may not be able to. Charities can also find it difficult to fund necessary day-to-day expenses (from auditors to phone operators) if their funds are constrained. In general, if you trust a charity enough to give them money, you should trust them enough that they know the best way to spend it.<\/p>\n

Don\u2019t spread yourself thin<\/h2>\n

Donating relatively large amounts to a few charities is, in general, better than a lot of small donations to many charities. This is mostly due to transaction costs \u2013 the smaller the donation, the more gets eaten up by credit card fees or handling fees or other things like that.<\/p>\n

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What you donate to matters<\/h1>\n

This shouldn\u2019t come as a surprise \u2013 what you donate to (both in terms of cause and specific charity) makes a huge difference in terms of the change that your donation can create.<\/p>\n

The best places to donate<\/h2>\n

If you want to make sure that your donation goes where it will do the most good, there are a few organisations that do rigorous assessments of charities to really pick the cream of the crop.<\/p>\n