One of the last milestones for a successful investor is likely being titled a philanthropist. But why couldn’t a budding investor practice philanthropy just like the Buffets and Dalios?
It would be interesting to hear what kind of philanthropy the forum members practice or plan to practice (e.g., in the form of a will)?
For my part, I can say that for a few years, a (shamefully) small monthly sum has gone to UNICEF and irregular additional donations to various causes (e.g., HelsinkiMissio, in my opinion, does extremely important work). Today, reading about the situation in Afghanistan and Haiti, I felt a pang and decided to put my monthly sum X, instead of into index funds, this month towards UNHCR and Doctors Without Borders (Lääkärit Ilman Rajoja). I think this money was more needed by others now than by me in the future (but then again, when wouldn’t it be, and sometimes one also needs to build additional security for their own family’s future?). Additionally, I thought that perhaps as a bonus, I won’t have to regret buying more stocks at the peak in the future
Is it better to donate money when you’re young, or let it compound and become a donor when you’re older? Do good deeds compound? A large donation now is better for the future than a large donation 40 years from now, but is a small donation now better than a large one later?
Good opening. I am also a monthly donor to UNICEF with a very small sum, but I’m not ashamed because I know how much it already helps in the poorest countries.
I’ve been thinking that perhaps it would be best to make a continuous percentage investment of profits and teach my offspring to do the same.
I’ve been a monthly donor for about 13 years, I don’t remember exactly. Annually, I donate around €1000-1200 (approx. 2%+ of my net income) distributed among several different charities. For adult Christmas presents, I buy “charity packages” and give loose change to collectors if I encounter them. Every now and then, I wonder if I should cut back, but then I think that someone needs what this money can provide much more than I do. I aim to increase my donations as my income grows.
I also often take clothes and other items to local charities for the less fortunate; next, a package will go to Hope Ry.
But as someone mentioned, more significant sums can be given when net worth is so substantial that giving doesn’t create a large dent in accumulated wealth. This way, everyone wins.
By donating to the Finnish Red Cross (SPR) Disaster Relief Fund, you can at least be sure that most of the money won’t go to overhead costs, as is reportedly the case with, for example, donations from bottle return machines.
For example, in the USA, only the Red Cross could respond immediately to the devastation of Hurricane Katrina in New Orleans because it didn’t have to politick over whether the costs belonged to the city, the state, or the federal government.
Here’s a link I found about the questionable effectiveness of bottle recycling donations:
To charity 0%, 12.5%, 17%, or 30%?
And to the intermediary 70%, 83%, 87.5%, or 100%?
Ask the organizations involved in charity collaborations if you’re interested in more details. Juurikki (the user’s nickname) doesn’t know more about the matter personally.
The Viking chief tries to buy gifts for underprivileged families every Christmas… Last year, an underprivileged family received food and a Christmas tree for Christmas. A great start.
I have been donating monthly to Interpedia since my first paycheck, for almost 20 years. My particular focus has been on the status of girls in impoverished countries. Back then, it was easy to start donating when I owned nothing. Now it feels difficult to start donating elsewhere, even though I have much more.
A really great opening. Every year, I try to donate a slightly larger sum to mental health work than the previous year.
Charity itself certainly doesn’t mean voluntary work or hobbies, but I coach young boys in a certain sport, and quite often I get the feeling that there are greater benefits for them than just the sport itself. I personally see the whole thing as work and investing enabling me to have even more free time in the future, which I can then put into this kind of activity.
I donate to the Christmas Kettle (Joulupata) collection annually. Low overhead costs and funds are distributed locally.
Perhaps I’m a bit cynical, but pouring money into a corrupt developing country isn’t necessarily very cost-effective, as the money might end up in the wrong hands.
I haven’t (yet) started making direct monetary donations (living on a student budget for now), but I still wanted to do some good, so I’ve been a support family for children in need for two years now. In the future, when I have a regular salary, I will definitely allocate a small portion to monetary donations as well.
“Around Christmas, I’ve given money (small sums) to the Salvation Army’s Christmas Kettle collection both locally and online, and I’ve participated in a few smaller collections now and then.”
One percent of my gross monthly income I donate, split between HelsinkiMissio and Plan. A third charity has also been considered, but I still need to think about it. I sometimes donate pocket change to Roma beggars and those who need a bottle of liquor, according to my feelings, but I certainly don’t make the mistake of giving money to drug addicts.
Regarding the situation in Afghanistan, Plan is no longer an effective solution, as the situation there now looks very grim, and organizing girls’ education there is likely an insurmountable task even for aid organizations. Sad.
So why do I donate? I myself have had financially difficult life situations in the past, but pride has prevented me from seeking financial help. Perhaps we can speak of social conscience. I have enjoyed all the benefits of a welfare society, but some people have things much worse. In my current life situation, when I can also afford to invest, it would be downright embarrassing not to give a few pennies to charity as well.
Up until now, I don’t think I’ve donated at all, except for the occasional Christmas kettle. I’m a bit cynical about efficiency and somehow I’d like more control over where the money goes. Microloans interest me as a concept. Now, however, my employer promises to double all my donations. I should start looking for a good cause.
This is a very utilitarian perspective, but it’s true that, fundamentally, a large sum of money can achieve more good than a small one. It also depends on whether one views the situation from the perspective of current vs. future generations.
I could argue that a small good also grows with “compound interest” – preventative work is generally more cost-effective in terms of both diseases and social well-being (e.g., hygiene, vaccinations, children’s education, etc.). Not to mention animal or nature conservation, where things need to be done now, not in a couple of decades.
I am a monthly donor to the Finnish Red Cross (SPR) and I also contribute individual sums to collections. About 1-2 percent of my net income, no more than that.
Then I see a primary school-aged boy for whom I am a male role model. He hasn’t had a male role model in his life; his own father hasn’t been very involved in his life and unfortunately passed away a few years ago. I see the boy about once or twice a month; we don’t always do anything special; we wrestle, play, play on the computer, and things like that.
