The Smart Person's Guide to Giving

The video discusses the impact of the pandemic on charitable donations and provides guidance on evaluating and choosing charities. It highlights the importance of understanding how donations are used, the challenges nonprofits face, and the prevalence of charity scams. The video also offers strategies for effective giving, emphasizing the importance of supporting both local and global causes.

What is a key factor in determining if a charity is considered good?

• The number of volunteers it has

• The number of countries it operates in

• The percentage of revenue spent on aid programs

• The size of its marketing budget

What argument does Dan Palota make about nonprofit organizations?

• They should reduce their administrative costs

• They need to invest in salaries and advertising to compete

• They should only rely on volunteer work

• They should focus more on local issues

What is a common characteristic of charity scams?

• They have been around for decades

• They often appear after high-profile disasters

• They focus on local community issues

• They are usually government-funded

What is a recommended way to verify a charity's legitimacy?

• Trust any charity with a familiar name

• Donate in cash or gift cards

• Check their website and literature

• Respond to direct solicitations

What should you consider when deciding which charities to support?

• The charity's advertising strategy

• Your personal passions and beliefs

• The charity's age and history

• The number of employees it has

Why is it more efficient to give larger amounts to fewer organizations?

• It helps charities hire more staff

• It allows for more frequent donations

• It increases the charity's visibility

• It reduces processing costs

What is the 50-30-20 rule in charitable giving?

• 50% to disaster relief, 30% to education, 20% to health

• 50% to advertising, 30% to salaries, 20% to overhead

• 50% to local charities, 30% to international causes, 20% to personal savings

• 50% to verified charities, 30% to community gifts, 20% to impulse gifts