Why I Dislike Donating Cash to Charities

Before you label me an evil monster for not putting a buck in the donation bucket at Christmas time, please allow me a chance to explain. I have no problem with people donating money to charity. That is their prerogative, and I'm fine with it; it's just not for me. I know that charitable organizations need money to operate, they obviously can't advertise with food, clothing or a kind word. As well illustrated by our beloved federal government though, sometimes throwing money at an issue isn't necessarily the best way to fix it.

Unless I'm actually handing the dollar bill to the person who is directly in need, I typically just don't care to donate cash. There are often just too many unanswered questions in my mind about where that dollar will go, how it will be used, by whom, for what purpose, and in what amount.

Now I'm in no way trying to dissuade anyone else from donating to charitable organizations. I do feel however, that too many people tend to throw their hard-earned money at charities without actually thinking about what they are doing or if that is indeed the best way for them to contribute to a particular cause. Sometimes cash is a good option, other times, not so much. Here are a few things I consider when deciding whether or not to donate cash to a charitable cause.

My Problem with Donating Cash

I've contributed to numerous charitable organizations throughout the years in a variety of ways -- and yes, I've even donated cash. The times I do give in cash however, are typically in local situations in which I know the people in need or the operators of the organization personally.

But how many times have nightly news shows run exposes on corrupt charities in which funds are being filtered into the coffers of rich organizers or otherwise being poorly utilized? When you send a text for a cash donation or drop a dollar in the bucket, can you say for sure that you know where that money is going? And even if that dollar does go to a reputable source, are you positive that it is being used in a way that best behooves those in need?

Cash is an option; but is it the best option? I'm often left wondering whether I can't do more good by contributing in other ways.

Donating Tangible Goods

Over the years, I've seen a multitude of television and newspaper reports on shady fronts posing as reputable organizations set up in efforts to bilk people of their charitable donations. Personally, I'm often more comfortable donating items like school supplies, household items, clothing, books, winter wear, and similar goods. I mean, what organization is going to embezzle or misappropriated sweaters, dishes or canned food?

In my personal opinion, it's much more likely that such items will make it into the hands of those in need and who will appreciate them, than into the hands of the corrupt. However, while one person's junk is another person's treasure, what's one person's junk is sometimes just another person's junk, so I ensure I avoid donating things that are broken beyond repair since doing so would only be wasting the charity's valuable time.

Helping in Other Ways

Over the years, I've worked in a food kitchen, have cleaned up roadside trash, given blood, donated canned and dry goods, and when I worked in the hotel business often donated sheets, blankets, towels, toothbrushes, toothpaste, soap, and other goods to local charities. I even helped an old lady cross the street once -- true story.

I have contributed in a number of ways and to numerous causes without the need to necessarily donate money. Our government gives billions of dollars in our tax money to various domestic programs and in foreign aid each year, and I've paid my taxes faithfully each and every year I've worked since age 15, so don't say I'm not doing my part there either. And if I should ever decide to put my hard-earned money into the charity bucket, I'll do my best to make darn sure I know into whose hands it is going. I'd much prefer to give to a neighbor, co-worker or employee in need (which I've done) or a local family in dire straights (which I've also done) than to an organization I know little about and have no idea as to how they will spend that money.

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Disclaimer:

The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.