Many communities embrace the practice of tithing—getting a congregation to contribute 10%
of its income to the church. You may not be in a position to provide that level of funding,
but you can make a donation. You should make it a habit to earmark a portion of your annual
income to give back to nonprofit organizations. Donate to charities that have an established record of help-ing
people in need. Make sure to factor such expenditures into your annual and monthly budget.
Here‘s how you can serve your community:
Work with your church to get involved in your community
Money is one way to make a contribution to your church and your community. However, you can
also donate clothing, collectibles, securities, frequent flier miles, and other items which can prove
valuable and give you a tax break.
Sponsor community activities
You can serve as a sponsor for needy organizations and worthy causes. In fact, if you own a com-pany,
the funds that you contribute to an event are tax deductible.
Serve on community boards
Use your corporate and business experience to serve as a member on the board of a community
organization or nonprofit organization. Talk to your company’s corporate affairs department about
donating equipment and the like.
Get matching grants from employers
Find out if your company provides matching funds for charitable donations. In such cases, try to
give the maximum amount that your employer allows.
Invest in socially responsible funds
One way to do well by doing good deeds, is to invest in mutual funds that have a social bent—
funds that invest in companies that promote a sound environment, workplace diversity and good
community relations. These funds tend to shy away from companies in the tobacco, alcohol,
gambling and defense industries.
Set up a nonprofit corporation or foundation
One way of giving back is by developing an entity specifically designed for philanthropic efforts.
Make sure that you get the proper legal and accounting advice in order to get all the tax breaks
you deserve.
Set up a trust
With a charitable remainder you can give appreciated securities such as stocks, bonds, or prop-erty—
to a charity in exchange for a qualified annuity. It’s important that you consult a lawyer
in crafting the legal document. From there, you can seek the advice of a broker about investing
the funds. It’s important that you keep records of your donations (receipts, canceled checks and
bank statements) so you can document your charitable giving at tax time.
To Use A Portion Of My Personal Wealth To Strengthen
PRINCIPLE NO. 9
Today, I commit to:
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2
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Declaration of Financial Empowerment
M
steps

resources
Websites:
www.networkforgood.org
www.servenet.org
www.volunteermatch.org
www.communitywealth.org
www.mentoring.org
www.fundraisingideas.com
www.give.org (BBB Wise Giving Alliance)
Books and Publications:
Charity Rating Guide and Watchdog Report
(American Institute of Philanthropy)
BBB Wise Giving Guide (BBB Wise Giving Alliance)
Successful Corporate Fund Raising: Effective
Strategies for Today's Nonprofits
by K. Scott Sheldon
The Collaborative Leadership Fieldbook: A Guide for
Citizens and Civic Leaders by By David D. Chrislip
Organizations:
American Institute of Philanthropy,
773-529-2300; www.charitywatch.org
Center On Philanthropy and Civil Society
(Multicultural Philanthropy Project),
212-817-2010; www.philanthropy.org
Council of Better Business Bureau,
703-276-0100; www.bbb.org
Council on Foundations,
202-466-6512; www.cof.org
The Foundation Center,
212-620-4230; www.fdncenter.org
PRINCIPLE no.9 My Community
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A CHECKLIST FOR GIVERS
Know your charity. Here are some things to look for when evaluating a charity
or nonprofit organization. Once the group “checks out,” you are ready to give freely.
1] Is the exact name of the organization clear and recognizable? (Some groups have names
that sound similar to those of well-known charities. Be clear about which group is which.)
2] What is the purpose of the organization (e.g., finding a cure for a disease)? Is the organization
a for-profit, nonprofit, or professional association?
3] Make sure the charity or organization is registered with the proper state or local government office.
You can check a group’s legitimacy with the Council of Better Business Bureau, the National
Charities Information Bureau, and the offices of attorneys general. You can find ratings on about
400 charities through the American Institute of Philanthropy.
4] Request written information. This should include the organization’s mission statement, board of
directors, supporters and beneficiaries, latest annual report, and audited financial statements.
5] What percentage of the group’s funding comes from individuals, corporations, and foundations? The
Foundation Center (www.fdncenter.org) is a resource on grant-seeking and funding procedures.
6] Ask how your donation will be used. According to the Council of Better Business Bureau’s
standards, a charity should spend at least 60% of its budget on program services, or no
more than 40% on administrative and fund-raising costs. Ideally, 60 cents for every dollar
you donate should be used for charitable purposes.
7] When you’re ready to give, keep records of your donations. For security and tax record purposes,
always make contributions by check or money order. Note: The IRS requires that you obtain a
receipt for tax-deductible contributions of $250 or more.
8] Write the official name of the charity or organization on the check. Don’t give directly to solicitors
or fund-raisers for that charity. Paid fund-raisers get to keep a portion of the monies they raise.
9] Does the organization have a 501(c)(3) legal status, to which contributions are tax deductible
(www.irs.ustreas.gov/charities)? Understand that tax exempt means the organization doesn’t
have to pay taxes. Tax deductible means you can deduct your contribution on your federal
tax return.
10] Specify who should benefit. Write on your check where or for what purposes you want your
donation to go. Otherwise, it will go into a general fund.