AICPA's "Feed the Pig" Weekly Savings Tip

Charitable Giving

In light of the recent devastating earthquake in Haiti, many people are looking to make a donation to help the victims and many organizations are trying to make it easy to do so. Here are a few things to keep in mind when making a charitable donation to help ensure your kindness gets to those who need it most.

• Check to see if the charity is classified as a 501(c)(3) organization by the government (the designation means the organization has been set up for charitable purposes). Click here to search a listing of charities in the U.S.

• Check the Better Business Bureau Web site for information about the charity's mission, compensation, expenses and rating.

• Guidestart.org can also help you find some of the top rated charities and direct links to make donations. You can also check Guidestar for the charity’s most recent Form 990 to calculate what percentage of the charity’s donation go directly to those in need and what percentage goes to overhead.

• Do a little research online to see if there are postings, concerns or adverse ratings about the charity you are considering donating to. A lot of negative comments online could mean the charity is not what they represent themselves to be.

• When in doubt, give to a charity you are familiar with, such as the American Red Cross or your local community foundations or religious organizations. There are a lot of organizations who have already mobilized volunteers in Haiti to help those in need and could use your support.

Don’t let these few extra steps change your mind about making a donation—there are so many easy ways to help out. Even small donations contribute to the effort to help those in need.

Giving in the land of plenty

Over 2 billion people live on less than $2 a day. Think about it. $2 a day. From this perspective, the US financial crisis seems like a minor inconvenience for most of us.

I love the holidays and lots of presents under the tree are just plain fun. Over the years I have changed my buying habits, focusing more on the practical side of life. A few years ago I added in the tradition of making a tin of homemade cookies for each of my kids and their significant others. In many ways, they look forward to the cookies more than the presents. There is just more giving when it gets that personal.

This year I am adding another new twist to the holidays. I am honoring each family member with a MicroPlace donation. MicroPlace takes donations and investments and creates micro loans around the globe. These are small loans, say $20 or $150, allow people in poverty to start small businesses. They may buy a cow or buy inventory to begin a basket making business. I like the idea because it isn’t a hand out, it is a hand up.

Hand outs disempower people. Being a charity case does not engage pride or personal responsibility. A hand up, a micro loan, allows a person to lift themselves out of poverty. Empowering the individual to feel that sense of accomplishment and pride that naturally comes to us when we make our own way.

For more information on Microplace:
https://www.microplace.com/

For more information on world poverty:
world bank statistics

May prosperity be yours,
Mackey McNeill, CPA/PFS
President and CEO
Mackey Advisors
www.CultivatingProsperity.com
859-331-7755
Mackey@CultivatingProsperity.com