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It's Important To Consider A Complete Package Of Giving

By Sharon Burns
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Time, talent and treasure. The three t's of charity. They are included in sermons and bulletin notices during the period of pledging funds and committing to participation in church activities.

While it's tempting to automatically continue our past giving, God calls us to examine our giving each time we're approached. It's also instructive to explore the needs from a charity's perspective.

Charities and churches are operated as non-profits. The term "non-profit" doesn't mean the charity needs to lose money or can't have a positive net income at the end of an operating period. Non-profit is actually a term the Internal Revenue Service uses which allows the entity to not pay income taxes on its net income (revenue in excess of expenses).

In fact, if a charity is to be self-sustaining over a long period of time, it should have positive net income. Positive net income in one year allows the charity to grow its services or continue to provide programs during the lean years.

Financial donations can be used in a variety of ways. Most givers prefer that their donations be used to provide direct programs and services. Giving in this way warms the heart.

In order to offer programs and services, the charity also needs to have facilities, staff and utilities. Funds for operating costs are required for ongoing programming.

Several times during the life of a charity, it will need capital funds. Capital funds may be required to start a charitable effort. They may also be needed to build or renovate a facility. Capital funds are usually obtained through a dedicated fundraising effort.  

In addition to program, operational and capital needs, the charity may benefit from funds to secure its future. Some donors will provide for the future by donating to an endowment. The earnings from the endowed investments can provide for future needs. The principal of an endowment donation is never depleted; rather only a portion of the income is distributed annually to be used for operations, capital needs or programming.

While financial contributions are required to build, operate and sustain a charity, it's important to understand that no charity will survive (or even begin) without the passion and commitment of its volunteers. Volunteers may be involved in leadership or service opportunities. Before a volunteer participates in leadership positions (as a board member, for example), he may want to volunteer in a service capacity.  

Direct service through the giving of time allows givers to more fully understand the need for a charity's programs or services. It also permits a volunteer to experience the operational functions directly. Seeing both of these components firsthand can improve a person's contributions as a leader or donor.

Talent and passion, not just time or money, form the backbone of any successful charity. At some point, the charity benefitted from the “champion” support of one or a small group of individuals.  

Consider the success of "Samstrong," a recent local campaign to raise funds for child cancer research. Without the direct experience of Sam Featherstone and his family, the effort would not have succeeded. Explore the history of any charitable group or effort and a story of personal talent or direct experience will emerge as the catalyst.

Funders, both charitable foundations and individuals, are increasingly sophisticated about the need for long-term sustainability. Time and talent are valuable contributions to a charity. However, they are no longer enough to maintain a charitable program or service for the long haul.

It's important for donors to consider a complete package of giving. Gifts of time build compassion. Gifts of talent increase commitment. Gifts of money enhance sustainability.