My 3 principles for Giving

With so many people in need during the Great Recession and well-meaning organizations asking everyday for contributions, how do you decide whether to give, how to give and to whom?

Three principles have served me well when I have been presented with a request for financial help by a person, family or organization.

1. I give to solve the problem, not prolong it.

I rarely give money to someone standing at an intersection begging for money. If I give them money, they will use it to prolong their current situation.

To solve the problem of no income, I prefer helping people start businesses. For example, I participate in www.Kiva.org micro-loans. Last week I teamed with 20 other people from around the world to loan Cynthia Iligan of the Philippines $650.00 to start a pottery manufacturing business. Her business plan is to repay the loan in 8 months. I receive no interest on the loan. Instead, I receive the satisfaction of knowing I'm helping someone solve a problem, not prolong one. By the way 98.78% of Kiva's total $100 million loans have been repaid!

2. I give where my contribution will be sorely missed.

While large organizations like United Way and the American Heart Association do great work, they won't miss my $100. I prefer knowing my contribution will have a significant, positive impact.

For example, my wife and I give monthly to CrossPower Ministry, that care for children in Africa orphaned by AIDS. We represent 15% of their monthly budget and receive regular reports of the positive impact they're having in Nakuru, Kenya.

3. I give using Maslow's Hierarchy of Needs.

I like the 17 kids in my neighborhood. They're a great bunch, ranging from 2 to 17 in age. And I like the fact they're playing organized sports. But I rarely contribute to their fund raising requests.

Why? Because their need for team uniforms or airfare to a tournament pales in comparison to the basic needs on Maslow's Hierarchy: physical needs, safety needs followed by the need for love and affection. Every kid on our cul-de-sac have two parents, a beautiful home and plenty food.

My contribution to local chapter of the Red Cross results in shelter for a family whose apartment house burned. Or my contribution to the Food Bank means a family without food stamps will eat tonight.

What giving principles have served you well?