Sunday, March 22, 2015

On Philanthropy

One of my resolutions this year was to donate more to charity and volunteer. While I haven't made it to volunteering yet, I have started making a regular donation to a charitable aid organisation. With Tropical Cyclone Pam devastating Vanuatu last week, I thought it would be a good time to discuss philanthropy and charitable giving.

Writing about this topic is difficult; it's hard to come off not sounding 'holier than thou' in some way or to make your audience feel guilty for not donating. This is not my intention. I am writing this article for others who may be in the same situation that I was; wanting to do something but not knowing where to start. There are so many charities and aid organisations out there, how can I pick one? How much should I give? But let's start with the most pressing question, why should I give?

Why?


There are many reasons that you might want to donate. You might give because:
  • you have a personal connection to the particular cause, place or group of people e.g. cancer research, areas affected by bushfires, cyclones or other natural disasters etc.
  • it makes you feel good
  • it is the right thing to do
  • of the idea of the Rawlsian Veil of Ignorance - the idea that if you did not know what circumstances you were to be born into, that you would prefer a world that is more equitable
  • of your personal philosophy or religious or spiritual reasons
It really doesn't matter; whatever reason you choose to give for, it is the right reason because it is your reason.

How much should I give?


The answer here is really whatever you feel comfortable with donating. There is no sense in giving if it means depriving yourself of basic needs (though sometimes it is good to think on what we consider basic needs), but likewise this doesn't mean you have to live as a pauper and can never buy anything for yourself again either. The key is finding balance. What worked in my case was to establish a rule that I could follow and felt comfortable with. This rule is to give 1% of my income, and to give for as long as I can, if possible for the rest of my life. I found this heuristic when I was conducting my own research into donating in Australia. This infographic makes a good case for why, though the data is a little dated now. 

There are a number of other guidelines or rules that have been proposed, such as a progressive donation scale similar to our progressive income tax system. The Giving One Percent website describes a few of these.

Who should I give to?


Again this really comes down to your own personal preferences and philosophy.

In my case, I'm quite persuaded by the utilitarian arguments for donating to charity (trying to provide the greatest good for the greatest number). A logical extension of these arguments is to donate towards poverty reduction/relief, development projects and international aid. After all, your dollar makes much more of a difference to someone living below the poverty line than it does for people with comparatively higher living standards.

So I knew I wanted to donate to an organisation that delivered broad benefits internationally. I also wanted as much of my money to go to the people who need it and not towards "awareness", marketing campaigns or administrative overheads. Finally, I don't believe that people who need help should be evangelised or proselytised to; help should be given without strings attached. I don't believe you need a god to do good works.

I used the Charity Chooser (Australian centric) to help narrow down the field of possible recipients and chose to support UNICEF for all these reasons. I would encourage you to think about what your own criteria for donating would be.

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As a final point, there are other ways to give to charity that don't involve parting with your money. You might be able to donate your time, donate your particular skills or donate your blood. I particularly encourage blood donation as it is very easy, there's always a shortage of blood and blood products, you replenish your lost blood over time anyway, and the overall experience is always really pleasant (the phlebotomists really do their best to look after you, and you are usually given milkshakes or other treats after you have donated!). 

We Australians like to think of ourselves as a generous country, though that is not really backed up by the data. In fact, I believe we are becoming a much more insular and self-interested country. One way I see to reverse this trend is to give and encourage others to give - whether it be their money, their time or their skills.

For a good general collation of stats on charitable giving in Australia, in easily digestible infographic form, have a look here.