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Show Charitable donations are amongthe things taxpayers think about as year’s end approaches. An expert offers some tips—and reflections—ongiving. F IT IS BETTER TO GIVE thanto receive (and there are 9-year-olds yearning for a PlayStation who would debatethis), it is better still to give wisely. In somesituations, you havelittle choice(the kid has herheart set on that PlayStation). But when it comes to charity, you have tremendouschoice. Andit’s not easy. Wrote AndrewCarnegie, once the richest manin the world, who gave away 90% ofhis fortune:“It is moredifficult to give money awayintelligently thanit is to earn it in thefirst place.” No one can makethese choicesbetter than you. It’s your money, your philosophyof life—and what makes charity so beautiful, afterall, is that it is voluntary. (Whenit’s not, it’s called taxes.) Still, here are some thoughts that might spark a few thoughts of your own: DO YOU GIVE TOO MUCH? TOO LITTLE? n the aggregate, Americansare [rents generous.Just look at the responseto Sept. 11. But many folks of modest means probably give even morethan they should (bless their hearts) while many of the most fortunate give remarkably little. On average, Americansat almostall income levels give about 3% oftheir income to charity—a lotfor those struggling to get by, not muchatall for the well-off. One very decent millionaire I know felt too stressed to grant an important $10,000 request because,he said, he had just spent $80,000 on wall coverings. Contrast that with the late Oseola McCarty, a Mississippi laundress of very modest wants (she never owned a car and walked a mile for groceries) who,at 87, astonished the world by giv- ing $150,000—her life savings—toestablish a college scholarship. Manyofthe wealthy rejoicein their ability to give. But for every Ted Turner mA SmartWays ToBeGenerous a worthy cause. For more on what you might prudently be ableto give,visit NewTithing.com. DO YOU GIVE WISELY? a portfolio of stocks: You want a terrific return on yoursocial investment. who gives $1 billion to the United Nations, there are those who could give a lot more than they do—and would give more if they cameto appreciate whata luxury itis to be able to help.Or if they felt less need to keepup with the Joneses (who have even fancier wall coverings). If you're trying desperately to get off the 18% credit-card-debt treadmill, consider skipping charity for a year. If you icking organizations P: support is like picking a portfolio of stocks: You wantto make choicesthat provide a terrific return on your social investment. And sometimes “following the crowd”— just as with stocks—may continued Other Smart Year-End Money Moves *Gotlosses? Sel! enough but then, come next December, pay and donate as usual. For 2001, you'll take the standard tor canright your own finances now,you'll be able to give even more in the long run: Butif you are financially blessed, how aboutgiving 10% or 20% instead of 3%? What'sthat? You have no cash? Who does?! Think, instead,in terms of yournet worth.If your net worth were just $770,000 instead of $795,000, wouldit really make a difference? Yet, think what that $25,000 could do for BY ANDREW TOBIAS PAGE 20 - NOVEMBER 4, 2001 - PARADE MAGAZINE |
