5 Myths About Charitable Giving You Need to Know

Giving to charities can be immensely rewarding, but you might be surprised to learn that there are a few widely held myths regarding charitable giving. We’re here to bust those myths and give you the straight facts.

“My donation is too small to even matter.”

Small donations are worth more than you think. Evidently, they all add up and can help nonprofit organizations reach their fundraising goals—but, they also offer an opportunity for continuous growth for the organization. If one significant monetary source for the nonprofit quickly ceases, like a government grant, the nonprofit could be in jeopardy. However, when a nonprofit has a variety of sources for funding (like a multitude of small donors), it will have a better chance of succeeding. Any charitable contribution, no matter how modest, is crucial for the survival of a nonprofit organization. Plus, when you donate, you are essentially casting a vote for the importance of the organization! 

“Most nonprofits are huge and do not need my money.”

Did you know that small grassroots organizations make up a majority of nonprofits in the U.S.? Their annual budgets are typically less than $1 million. Plus, one in five nonprofit organizations operates on an annual budget of $50,000 or less, and the typical monthly donation made online is only around $20! Your financial contributions truly make a difference, and they are a lifeline for tiny nonprofits that lack a reliable program funding base. 

“Donating money is the most influential action I can take.”

The most influential action one can take is to inspire others to express their generosity. The most effective philanthropists in the world are aware that their true power lies within their ability to spark other people to get involved with their cause. In the philanthropic space, leadership is all about motivating and empowering others. So, advocate for your favorite nonprofit and let everyone know why their cause is meaningful to you. You’d be amazed by how many people you can inspire to donate their time or money. Plus, it can’t hurt to educate others on a good cause.

“Donating to a nonprofit will not benefit me.”

Numerous studies have shown that giving to others is beneficial for your health. You can read more about that here. Essentially, giving to others can increase happiness, decrease stress, and potentially increase life expectancy. Plus, you can claim some charitable contributions on your federal tax deductions, which might benefit your bank account. More importantly, it just feels good to give!

“I don’t have money to give, so I can’t help.”

Your time, effort, and abilities are extremely valuable and can have a parallel effect on a monetary donation. You could expand your network, for instance, by organizing an event to spread awareness about the cause and influence others to donate. Or, you could promote the nonprofit on your social channels to inspire your followers. Alternatively, you could donate your time by volunteering, or in some instances, you can donate supplies or gently used items. You don’t always need to donate money to give back!