Donation to Charity

Six Ways to Make a Donation

Making a donation to a charity by writing a check is the most common form of philanthropy in the world. It is relatively simple and certainly direct.

Making a donation through donor-advised funds is becoming more popular. Donor-advised funds are charitable giving accounts offered by a sponsoring organization that are designed as an accessible, simple, and less expensive alternative to private foundations. Put your money in, let the sponsoring institutions manage it and then make a donation to the cause of your choice.

Some high net-worth donors, and families, set up private family foundations to make their donation. Although some private foundations are large and well known (the Rockefeller Foundation, for example), with matching staffs, most of the approximately eighty thousand private foundations are unstaffed, and two thirds of them have less than $1 million in assets. Your own foundation is the best way to make sure your donation is totally matched to your values and interests.

If you've ever belonged to a book or investment club, then you know the basics of a giving circle. Giving circles are relatively new to the philanthropic scene but are gaining ground rapidly. Making your donation through a giving circle is both fun and practical.

If you are concerned about making a donation to a particular issue, or even a geographic area, you may want to seek out intermediaries that are working specifically on that issue or in that locale. Making your donation through a trusted group that knows a cause inside and out can be reassuring.

The beauty of microphilanthropy, through online giving, is that donors of modest means, in the aggregate, can make a big difference. Through online services, you can make a donation to nonprofits that are meeting societal needs, or you can even make a donation to an individual. Plus, through some online giving sites, you can organize your friends and family to make a donation to a cause.