Question

1. Explain the five best reasons to give (Why do people make a donation?). What are some reasons people don’t give more than they do?
2. What are some steps you can take now to begin your giving plan?

Answer 1

(a)Why do we make a donation? The reasons for making a donation to various groups can be any of the following :

(i) Personal Morals and Ethical Values

A person's inner conscience or the presence of moral obligation towards the less fortunate is a powerful drive towards him/her donating his/her income or even free time. By doing this, their personal values are reinforced and they feel motivated to do more such social work.

(ii) Act of giving is impactful

The act of giving is a powerful thing by itself. Today there are many methods by which a person can donate their money without any deductions for tax. This ensures that the said amount reaches the needy.

(iii) A Lesson for our future generations

Children learn from their elders. So, by engaging in acts such as giving away money or effects towards donation or charity will encourage future generations to so. It also teaches them to be appreciative of what they have.

(iv) Sets a good example

By seeing people donate, others in life such as family and friends will also be motivated by them. So, the next time the others are also more likely to make donations.

(v) General Mood Booster

Doing a good deed may be exhausting but they are always fulfilling. This makes the person will good and positive. This will further encourage them to make further donations in the future.

But even today many people donate very less or none at all towards social causes. This may be because :

(i)they may not believe in certain causes.

(ii)they don't believe that their hard-earned money will not be put to good use or that it may not reach the hands of the needy.

(iii)they have different priorities.

(iv)they don't believe that the organisations don't really make any difference.

(b) How to be able to make donations?

(i) One of the simple ways to plan to make donations is to set up a private donation fund. Set target for yourself. Little by little, we should set aside amount for the fund. So we can monitor our finances and donations.

(ii) Establish a Donor Advised Fund, where a third party maintains the donor's fund, but the right to donate to different groups remains with the donor.

(iii) Donate Stocks and securities instead of cash since it may appreciate in the future.