Transparency And Accountability In Christian Charity: Ensuring You're Giving Responsibly
Giving feels good to the giver, but feeling good may not equal doing good. Giving responsibly is certainly about more than making us feel charitable or look selfless. It actually does good for the people we want to help.
Unfortunately for us as donors, not all charities do as much good as they claim. Even organizations with a Christian label or mission may not be the best place to invest your money in God's Kingdom.
How can we be generous, fund God's work, and also give responsibly?
A Biblical Foundation of Wealth, Resources, and Giving
The Bible provides a strong theological foundation for the stewardship of wealth and resources.
In Proverbs 3:9-10, we are reminded to honor the Lord with our wealth and with the first fruits of all that we produce. We are also called to be generous and ready to share, as can be seen in Luke 12:33. The Apostle Paul reminds us in 1 Timothy 6:17-19 that we should not be haughty or put our hope in uncertain riches, but rather to trust in God and do good.
A Biblical theology of wealth recognizes that God owns everything. We are stewards of God's resources, and as stewards, we should use God's wealth for His glory. The way we spend money, save money, and give money should all reflect God's plan for our lives and His mission to redeem the world.
The Bible teaches that our hearts follow our money. When we give money to help advance God's kingdom and to serve people in need, our hearts may also grow closer to God. Generosity is key to following God's will for our lives.
To faithfully obey God's commands regarding money, Christians need to be intentional with their finances and how money is being used - that includes your giving. Transparency and accountability when giving to a charity can be a vital part of this.. In doing so, we can help ensure that our charitable contributions are being used in accordance with God's priorities and are helping those who are in need.
How to Find More Joy in Giving
We often think of giving as an act of sacrifice, and while it certainly can be that, it can be also a powerful source of joy. Research published in Science magazine says, "We actually see people getting rewards as they give up money. On top of that, people experience even more brain activation when they give voluntarily.” The study, which was published in the June 15, 2007 issue, consisted of reviewing the brain scans of individuals in different situations; including receiving and donating money.
This data corroborates 2 Corinthians 9:6-8, which says, "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work." These blessings don't necessarily refer to fleshly desires, but often in becoming more like Jesus and receiving the fruits of the spirit; love, joy, peace, patience, kindness, generosity, faithfulness, gentleness, self-control…”
How do you become a joyful giver?
First, recognize that God delights in giving. From the opening pages of scripture until its conclusion, God gives good gifts to His people. When we understand that giving is part of God's character and design, we realize that our own giving makes us more like Him. It has the power to reinforce our faith and dependence on Him - trusting that He will continue to provide.
Second, we align our philanthropic mission with God's eternal mission. Our gifts need to have a purpose that goes beyond the present. When we give with real impact in mind, we can be part of God's redemptive plan for the world.
Finally, give generously. Joy and generosity may be directly correlated. The more joyful we are, the more likely we are to give, and by the same token, the more generous we are, the more joyful we tend to be.
Giving is an act of joyful self-discipline.
What Responsible Giving Means
A giving strategy that incorporates Biblical principles is faithful, generous, and cheerful. It's also responsible.
How you give, how much you give, and who you give to all matter. What does it mean to give responsibly?
To be transparent and accountable with your giving, there are several key steps you can take.
Give consistently and in line with your capabilities. This means setting realistic goals for yourself and making sure that you are living within your means. In other words, make a budget and decide how your overall spending and giving aligns with your values and goals.
Prioritize the spirit of giving over the potential tax benefits of your donations. Many taxpayers find themselves taking the standard deduction instead of itemizing these days anyway. Give because it glorifies God and helps others rather than because it might benefit your Form 1040 this year.
Make sure your charitable contributions are going through the proper, documented channels after the money leaves your hands. Not only should a charity offer secure online giving options, but they should be able to track your donation.
Vet who you give to, ensuring that the organization or individual is using your funds as intended. While checking for ECFA membership or Charity Navigator endorsements is a good start, you might also dig a little deeper. You may choose to read the Form 990 a charity submits to the IRS as well as review a site like Glassdoor to see what employees have to say about the organization.
Celebrate your giving: Giving should bring joy, not stress! Make sure to celebrate the spirit of generosity by taking time to reflect on the impact of your donations. Knowing that you made a difference in someone’s life will bring you immense satisfaction, so take the time to recognize what you’ve accomplished.
By following these steps, you’re working to ensure that your charitable giving is honoring God and making an impact in the lives of others. Besides, giving benefits the giver, not just the recipient.
5 Steps to Vet a Christian Charitable Organization
Here are five steps you can take to vet a Christian charitable organization before you make a donation:
Research the charity’s history and mission statement. Understanding a charity’s background and mission statement can give you insight into how the charity uses its funds and whether or not the organization’s values align with yours.
Examine the charity’s financial information. A charity's financial documents should be publicly available on its website or via its tax forms. Make sure to examine these documents to ensure that the organization is using its funds responsibly.
Check out the charity’s ratings with watchdog organizations. Organizations like Charity Navigator and GiveWell rate charities based on their effectiveness, financial transparency, and other criteria, making them valuable resources when vetting a Christian charitable organization.
Read reviews from past donors. Check online reviews from past donors to get a better idea of how the organization operates.
Contact the charity directly. Don’t be afraid to reach out to the organization directly with any questions or concerns you may have about their mission or finances. A reputable organization will be more than happy to answer your questions and address any concerns you have.
It's worth the extra time you invest in finding the right charity for your philanthropic dollars. Rushing to find a charity to support can lead to making mistakes.
5 Mistakes Donors Make and How to Avoid Them
Giving only out of emotion. Feelings are part of giving, but they shouldn't be the primary driver of your gifts. Before you make a gift, it's a good idea to consider whether the organization's mission aligns with your giving goals. If you are considering a major gift, be sure to talk to your financial advisor before you write the check.
Giving to too many causes. There are more than 1.8 million charities in the U.S., but you cannot support them all nor would you want to. Instead, focus your giving on 1-3 charities that advance your mission and align with your values.
Giving with unreasonable expectations. Some prospective donors never give because they think the charity's CEO makes too much money or the organization spends a little too much on overhead. This may sound wise, but it isn't. Large, effective, and well-managed organizations will pay their staff reasonable salaries to do high-quality work. Don't expect a volunteer-run organization to effect big change — or to track your donation very well. Give where it matters and don't worry if the overhead is 25% or 35%. Missional alignment is what counts.
Giving too quickly. If you've just heard about a cause or charity, this isn't the time to make a pledge to its annual fund. Rather, it's time to do research, look at your budget, and maybe talk to your financial advisor.
Giving only at year's end. By giving regularly, you can do more good, give more money, and feel less of a pinch at year's end. Besides, charities need money throughout the year, and monthly giving is usually easier on your budget.
Giving is an important part of being a Christian, but it can also be important to ensure that your charitable contributions are going to a reputable organization.
If you would like to discuss your philanthropic goals or your giving plans with a financial advisor, give us a call today. We would love to talk with you.