Dear Dave,
Our financial situation is pretty good now, and my husband and I feel it is time to start giving something back. There are several organizations we’re interested in helping, but how can we know if they’re legitimate and will use our money wisely?
-Laura
Dear Laura,
I really appreciate your giving spirit, but the truth is you can never be 100 percent certain about this kind of thing. About the best you can do is put in some serious time researching and digging beneath the surface of various organizations to find some that are a comfortable fit for you.
My wife and I give the majority of our donations to Christian ministries. It’s not unusual for us to take a tour of the place to see what kind of feel we get while we’re there. If they’re secretive or not forthcoming with what we consider to be basic information about how they operate, or if we see signs of opulence or super-luxury, you can bet we’ll be asking lots of questions.
Talk to the leaders and administrators about what they plan to do with the money from your donation. You have a right to know this. I mean, if they’re going to give the money to hurricane victims, you want the victims to get the money, right?
People who work for a charitable organization need to make a decent living just like everyone else. But if they’re ultra-rich, it could be a sign that they’re not being responsible with their donations. Take a look at their administrative costs - what percentage of donations goes directly to the cause - and anything else you feel would help you make the right decision.
Giving is like anything else, Laura. It takes time and work to do it responsibly and with excellence!
- Dave
Dear Dave,
I’m thinking this is the chance of a lifetime. There are bargain basement prices in the stock market right now, so would it be okay to borrow a small amount of money to buy stocks?
-Glen
Dear Glen,
It’s definitely a time to be bullish, but it’s not a time to be foolish.
Buying single stocks is very risky. That would be foolish regardless of the price. And borrowing money to invest in anything increases the risk enormously. NEVER borrow to invest!
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