Taking a broad look at who is giving, Baby Boomers represent the largest average gift per individual at $1,212. While 72% of Boomers give, a not far distant 60% of both Generation Xers and Millennials give. Reasonably, as Millennials are encumbered by student debt and starting salaries, they have the lowest average annual gift at $481. Generation Xers fall in between those two generations for individual giving, but they also make their presence known by leading their generational counterparts with volunteer hours served. Many things in life come down to whether you have more time than money. Many charities rely on monetary donations to keep functioning, so never underestimate the importance of giving what you can. While every little bit counts, they way that you donate funds may cause more work for organizations if you are restricting your gifts. 

Donors have the option to restrict gifts for a specific purpose or time, which means that organizations can only use those funds for a certain program, event, or specified period.  While this concept may appear to be beneficial at face value, donors may not realize that it can also present challenges especially to smaller, local organizations with limited resources. The tracking and reporting of restricted funds can be cumbersome and complex. It can be helpful to keep the following considerations in mind when deciding whether to make your donation restricted or unrestricted. 

1. For smaller organizations with a finance department of one or a few individuals, restricted donations come with added pressure. Extra time and care are required to track these donations. The added time and effort can pull resources away from the core activities that support the not-for-profit’s mission. 
2. While a donor may have a particular interest in specific programs offered through an organization, that specific program may not be where the organization has the biggest need or request for support. If large donations are allocated to programs that have a smaller need-base, this could result in one program being over-funded and others struggling to stay afloat. Instead of restricting gifts, donors should consider donating unrestricted funds, to assist with the organization’s overall mission, with confidence that their chosen charity will put the funds toward where there is the most need.
   

In the age of social media, the donor pool for non-profits is now anyone who has access to the internet. Large national and worldwide organizations with big marketing budgets can access anyone with a Facebook, Instagram, TikTok, Twitter or other social media accounts. Local not-for-profit organizations in your own neighborhood now must compete for your attention, often with a fraction of the marketing budget. When choosing who to donate to, keep the following in mind:

1. Keeping your dollars local is a great way to give and support the community where you live and work. While completing your holiday shopping, look around and really consider where the need is in your own community. 
2. Many large nationwide charities have local chapters in the Pioneer Valley. For example, United Way, Red Cross, National Alliance for Mental Illness, and Ronald McDonald House Charities all have affiliates based locally, in the Greater Springfield area. Donating directly to the local chapter may result in a larger local impact than donating at a national level. For example, a $100 donation to the national charity is pooled with other donations and a portion is allocated to the local chapters. In that sense, giving nationally is still giving locally. But if you are passionate about keeping your dollars in the local community, a $100 donation to the local chapter directly will likely have a greater impact as typically, a smaller percentage of the donation will be allocated back up to the national level charity.

There are undeniable benefits to donating money to a charity. Charitable donations make you feel good, and you get that satisfaction of knowing your money can change someone’s world and the community they live in. Many charities are IRS-approved, so there are also tax incentives (charitable deductions) that you can take as a result of your donation. And of course, setting an example of giving is a great way to teach the spirit of generosity and empathy toward others.

If you’re looking to donate to a good cause, we encourage you to research a need in your community.  If the Pioneer Valley that is important to you, and ask yourself, ‘where can I give a buck locally?’