Introducing the responsible modern donor

Some would say modern donors are becoming fickle, increasingly needing justification for their support or spreading their giving amongst a variety of causes they feel passionate about rather than choosing loyalty to one charity. The question on their lips is –  “how can we use our resources to help others the most?”.

In most areas of life, we base our decisions on evidence and reason rather than emotion or instinct. When we invest money or make purchases, we gather as much information as we can about our options to find out what will give us the greatest return. Yet when it comes to doing good, traditionally we have often set aside these standards and donated to charities on impulse without researching where our money goes.

As a result, good intentions may be squandered because people use their time and money in ways that do comparatively little good. Most of us don’t realise just how wealthy we are in relative global terms. To put it into perspective – those amongst us earning an average income in Australia are likely to be in the top 5% of earners globally. This relative wealth presents an enormous opportunity to do good, and comes with a responsibility to use our money wisely in areas of greatest impact.

Consider Oprah Winfrey’s South African girl’s school she financed for $40 million in 2007. This undoubtedly presented amazing benefits for the 150 young female students. In isolation $40 million seems like a very generous contribution to a worthy cause. But if you consider those same funds could have been used to build multiple schools and support many impoverished communities, it seems like a missed opportunity.

So which causes should we support if we really want to make a difference? What career choices will help us make a significant contribution? Which charities will use our donations effectively? These are the questions asked more frequently by the modern philanthropist.

For 2017 and beyond, does the responsibility lie with the charity or with the giver to ensure money is well spent?