I suppose charitable contributions aren't very ERE, at least not monetary ones. According to "The Millionaire Next Door," rich people don't get that way by handing money to others.
However, this group is full of people who, if they were looking for charities, would look for the same things that I do--do they actually work? Does most of the money go to the cause? How can I make the most impact for my buck?
I do give small amounts to groups that help me (public radio, the local wildflower center, etc.). But mostly I want to help with more important issues.
What are the most important issues? Currently, I'm thinking:
* not destroying the earth
* reducing pain and torture
* reducing poverty
And what are the best ways to accomplish those things? Currently, I'm guessing:
* work with locals to maintain environment (e.g., Rainforest Foundation and local small projects)
* actually buy land and take care of it (e.g., Conservation International and Nature Conservancy)
* lobby governments to pass laws to reduce pollution
* study pain treatments (e.g., Arthritis And Cancer Pain Research Center)
* prevent abuse (local shelters that also train people to reduce domestic violence, bigger watchgroups like Amnesty International)
* microlending (e.g., Finca International, Accion International, Greeman, Kiva)
* providing clean water, etc. (e.g., Engineers without borders, Peace Corp)
* making locally culturally acceptable birth control methods available (e.g., Planned Parenthood)
I don't actually know anything personally about any of those organizations except for the Nature Conservancy. I used to be a typist in a Zoology Department, and one of the professors worked with the Nature Conservancy and had me type his letters. So I learned that when an endangered species is found on private land, the Nature Conservancy works with the landowner to a) figure out what they're doing right and b) help them keep doing this without hurting their own industries. Ranchers learned to trust and appreciate the Nature Conservancy rather than fear that they were going to want to confiscate the land or make them stop ranching or something.
Any tips on bang for the charitable buck?
Charitable Contributions
I have been actively involved with Kiva for 4 years now. This was before my interest in FI, but I think it fits well with my current goals.
Kiva is not a charity, although they are a nonprofit. They facilitate microlending by allowing Internet citizens to contribute part of a loan to an "unbankable" entrepreneur. They do not take a cut of this, so if you opt not to make a donation to Kiva during the ending process, 100% of your money goes toward the loan. And if all goes well, you get 100% of your money back when the loan is repaid. That's one of the great things: your money doesn't just disappear, it is paid back if the borrower's business venture is successful.
Over the course of the past 4 years, my default rate is 1.1%. Almost the entire value of my Kiva portfolio is from the first 2 years of deposits; since then, I've mostly been re-loaning what's been paid pack. I've managed to re-loan 6x my original deposit so far.
I'd be happy to answer any questions about Kiva and microlending (perhaps in another thread). Definitely check it out!
Kiva is not a charity, although they are a nonprofit. They facilitate microlending by allowing Internet citizens to contribute part of a loan to an "unbankable" entrepreneur. They do not take a cut of this, so if you opt not to make a donation to Kiva during the ending process, 100% of your money goes toward the loan. And if all goes well, you get 100% of your money back when the loan is repaid. That's one of the great things: your money doesn't just disappear, it is paid back if the borrower's business venture is successful.
Over the course of the past 4 years, my default rate is 1.1%. Almost the entire value of my Kiva portfolio is from the first 2 years of deposits; since then, I've mostly been re-loaning what's been paid pack. I've managed to re-loan 6x my original deposit so far.
I'd be happy to answer any questions about Kiva and microlending (perhaps in another thread). Definitely check it out!
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jacob
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I'm going with the Warren Buffett approach. I'm delaying the problem. I'll likely end up dying a millionaire (not a billionaire) and shortly before that happens, the money can go to homeless cats.
(It's my understanding that nonprofits generally have more time than money. It's also my understanding that nonprofits waste money as well as governments do, because they don't have to earn it the hard way.)
What are the most important problems? That's a value judgment if there ever was one. The biggest one is probably overpopulation followed by climate change followed by peak oil. From a microperspective, many people will not even notice these since the pain will be far away or attributed to other causes e.g. like bullets attributed to wars over limited resources given shortages or too many competing people.
(It's my understanding that nonprofits generally have more time than money. It's also my understanding that nonprofits waste money as well as governments do, because they don't have to earn it the hard way.)
What are the most important problems? That's a value judgment if there ever was one. The biggest one is probably overpopulation followed by climate change followed by peak oil. From a microperspective, many people will not even notice these since the pain will be far away or attributed to other causes e.g. like bullets attributed to wars over limited resources given shortages or too many competing people.
@jacob "because they don't have to earn it the hard way."
Hmm, I'd call soliciting donations and holding fundraisers work in 'the hard way' sense. Or at least it's not passive income that you can just collect.
Charities/non-profits often need donations of time as well as money, especially skilled work (lawyers, computing, organizers). Most retired people tend to turn toward volunteering to fill that gap that otherwise would be work. I suspect ERE'ers have less of that issue though. For my part I enjoyed time when I was volunteering with Habitat for Humanity helping build houses (locally), both for the charity aspect and personal improvement (doing physical activity, and learning about construction).
Hmm, I'd call soliciting donations and holding fundraisers work in 'the hard way' sense. Or at least it's not passive income that you can just collect.
Charities/non-profits often need donations of time as well as money, especially skilled work (lawyers, computing, organizers). Most retired people tend to turn toward volunteering to fill that gap that otherwise would be work. I suspect ERE'ers have less of that issue though. For my part I enjoyed time when I was volunteering with Habitat for Humanity helping build houses (locally), both for the charity aspect and personal improvement (doing physical activity, and learning about construction).
I don't like donating to causes - I'm my own cause - but sporadically give in.
The best causes are win-win. I have donated for life extension research. It's in our interest to help defeat the debilitating disease called aging.
Even tiny sums help, Imminst regularly collects donations for small but important projects.
I was tempted to donate to ERE, but decided to wait for the much anticipated book.
The best causes are win-win. I have donated for life extension research. It's in our interest to help defeat the debilitating disease called aging.
Even tiny sums help, Imminst regularly collects donations for small but important projects.
I was tempted to donate to ERE, but decided to wait for the much anticipated book.
I like to think my taxes cover financial charitable giving. In my opinion a persons time is more useful to causes than money. Money just sustains people so they don't have to come up with a solution for the problem or a financially self sustaining solution. My time helps create a solution.
EX. My uncle has been unemployed for years. My taxes have been providing him unemployment. I could give him money to keep affording a house that is above his means but that just sustains him. Instead I have helped him fix up his home so he can sell it for more money by making it look great and fixing roof problems that might prevent him selling it. This not only gives him money through my time instead of handing over cash, it forces him to come up with a future fincancial solution which donations just don't inspire.
EX. My uncle has been unemployed for years. My taxes have been providing him unemployment. I could give him money to keep affording a house that is above his means but that just sustains him. Instead I have helped him fix up his home so he can sell it for more money by making it look great and fixing roof problems that might prevent him selling it. This not only gives him money through my time instead of handing over cash, it forces him to come up with a future fincancial solution which donations just don't inspire.