When we decided to give 25% of our income each and every month the hope was that a community of similarly-minded individuals and families would not only do the same, but that we would collaborate on where our donations could drive the most good and impact. Here is the first of many monthly lists of where our money will be going this month. Before getting to the list of organizations that we are personally contributing to each month I wanted to cover some basics of what went into our giving approach.
Our 25%
In announcing our desire to give more to those in need we disclosed that we wanted to give away 25% of our salary (an increase from about 4% prior). We also mentioned that we feel that we could give even more away and hope to do so in the near future. How soon that is will solely depend on how disciplined we stay with our consumption and giving. I plan on putting together a detailed post around best-practices to live on less, but that is for another day...lets get into the fun stuff like investing our money in others, not ourselves.
First, few "full disclosure" statements on our giving. The 25% of our salary is a post tax calculation. This dilutes the actual amount we are currently giving as it is not a calculation of all our pre-tax income. Example being that if my monthly salary is $10,000 a month, yet the post tax (and post 401k contribution) is $7000 a month, we are actually donating around $1750 a month vs $2500 if we were donating a % against our pre-tax amount. Also, it should be pointed out that we make a very small income on a rental property that we currently reinvest back into via random fixes, saving for larger improvement needs, and/or paying off the mortgage sooner if possible. The final disclosure is we do have a variable monthly compensation portion of our income that usually ranges from an additional 5% to 20% of our monthly take home. Giving its sometimes high-level of variability I have also not included this into my calculation. In summary, if we were to calculate all our giving against all our pre-tax income that actual percent of our giving would be more in the 15% range. Again, we feel humbled by being able to give away these funds, but we feel strongly that we can and will do more in the future.
When we started giving at our current amount we made two significant decisions. The first is that we took the vast majority of what we were saving and investing already and transferred that into our "giving" budget. Which on top of the small amount we were already donating monthly become the current monthly donation totals. The second decision we made is that because we live off a single income we needed to work to find other sources of revenue to save and invest for the future. We decided to put all of the monthly variable compensation directly into saving, but the most important step we took was to make an effort to live off of 25% of our income. This required us to cut out most discretionary spending beyond food, basic household purchases, and the occasional date night out, indoor soccer league fees, kid's event, or other entertainment spending. The short-term goal is that we will have spending that is roughly 25% on housing, 25% utilities, groceries, transportation, etc., 25% giving/donating, 25% savings/investing. The long-term goal involve much less mortgage debt and much more donating. The important aspect is our firm commitment to our monthly donations. If we consume more than we should each month then that first comes out of our savings before it starts impacting the other spending buckets. However, as long as we have an income, of any amount, we are committed to giving our share (at least 25%) to those in greater need.
What is the best way to give?
I have heard philanthropic experts talk about the need to contribute on a consistent monthly basis. This allows organizations to properly plan for a steady level of funding. It would also provide them the ability to plan out more impactful programs with that consistent funding. On the flip-side, I have read other experts that relish in the ability to target your giving in, hopefully frequent, lump sums. This provides us, the givers, the flexibility to be agile with our funding. An example would be the one mentioned in our earlier post on Giving 25%, where we talked about pushing back against political action or inaction, or emergencies.
I subscribe to the latter argument, but only slightly. Giving can't start and stop at inserting our credit card number into our computer screen. We have to keep our eye open and go to where the suffering is, and sometimes that changes on a monthly (if not daily basis). Therefore I need flexibility with the funds I give to periodically contribute to those in a position to alleviate any immediate suffering.
That said, we also feel strongly about contributing on a consistent monthly basis to those organizations that we have a long term giving relationship with already and are counting on this predictable income. Furthermore we want to lock-in a consistent monthly contribution for those organizations that are directly saving the lives of people everyday, right now. The Against Malaria Foundation being an example. Others are described in our Top Charities list.
Currently we have settled on a 40/60 balance where we are locking in 40% of our giving to consistent monthly contributions.
Where is the best place to give?
One of the motivations of this forum is to constantly, and collaboratively, be asking the question of, "Where is the best place to give?" or "Who should we give our money to?" A hope is that we will be able to pool our giving to a shortlist of causes and therefore to a group of extremely impactful non-profit organizations. I would also say that this is very much dependent on what you are passionate about, what causes are important for your community, and where can your resources make the most impact (lives saved and/or improved, hope created, etc.).
Where we are giving in January?
Monthly contribution giving (40% of total monthly donation)
15% - International Justice Mission - The foremost global organization that protects the poor from violence in the developing world
15% - Against Malaria Foundation - The highest ranked Give Well charity...AMF protects people from malaria by funding nets and ensuring they are distributed and used.
15% - Deworm the World Initiative (Evidence Action) - Virtually nonexistent in developed countries today, there are more than 870 million children at risk of parasitic worm infections worldwide.
11% - These Numbers Have Faces - Consistently optimistic about the future of Africa...TNHF is investing in the next generation of African leaders
10% - African Renewal Ministries - We are funding the schooling of two young students in Uganda
9% - Charity Water - Bringing clean and safe drinking water to people in developing countries
5% - AnnieCannons - They stand for the proposition that no one with the insight or potential to change the world should be ignored because of her gender, race, or previous condition of servitude.
5% - Glide - A radically inclusive, just and loving community mobilized to alleviate suffering and break the cycles of poverty and marginalization.
5% - Virginia Garcia - They provide high-quality, comprehensive, and culturally appropriate primary health care to the communities of Washington and Yamhill Counties with a special emphasis on migrant and seasonal farmworkers and others with barriers to receiving healthcare.
5% - Basic Rights Oregon - Working to ensure that all LGBTQ Oregonians experience equality by building a broad and inclusive politically powerful movement.
5% - Black Parent Initiative - They engage with Black parents and caregivers utilizing historically predominant Black churches as the organizing place, based on the notion that the missing link was Black families’ absence from conversations around education reform.
15% - Against Malaria Foundation - The highest ranked Give Well charity...AMF protects people from malaria by funding nets and ensuring they are distributed and used.
15% - Deworm the World Initiative (Evidence Action) - Virtually nonexistent in developed countries today, there are more than 870 million children at risk of parasitic worm infections worldwide.
11% - These Numbers Have Faces - Consistently optimistic about the future of Africa...TNHF is investing in the next generation of African leaders
10% - African Renewal Ministries - We are funding the schooling of two young students in Uganda
9% - Charity Water - Bringing clean and safe drinking water to people in developing countries
5% - AnnieCannons - They stand for the proposition that no one with the insight or potential to change the world should be ignored because of her gender, race, or previous condition of servitude.
5% - Glide - A radically inclusive, just and loving community mobilized to alleviate suffering and break the cycles of poverty and marginalization.
5% - Virginia Garcia - They provide high-quality, comprehensive, and culturally appropriate primary health care to the communities of Washington and Yamhill Counties with a special emphasis on migrant and seasonal farmworkers and others with barriers to receiving healthcare.
5% - Basic Rights Oregon - Working to ensure that all LGBTQ Oregonians experience equality by building a broad and inclusive politically powerful movement.
5% - Black Parent Initiative - They engage with Black parents and caregivers utilizing historically predominant Black churches as the organizing place, based on the notion that the missing link was Black families’ absence from conversations around education reform.
Lump sum giving (60% of total monthly donation)
100% - Holla Mentors - They are a school-based mentoring program that works with administrators, teachers, social agencies and families to serve kids of color at several Portland schools. The organization is directed by two of our pastors from church, Imago Dei, and we couldn't think of a better way to give our first month's lump sum amount than to the efforts of Holla, the young adult mentors, and the junior high and high school girls and boys that are being impacted by the love and care they are shown. (Full disclosure - we actually made this donation in Dec at a fundraiser that they had)
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