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Charity & Philanthropic Budgeting · She's On The Money

0:00
Speaker 1: Just before we get started, we'd like to acknowledge and
0:03
Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander peoples.
0:07
Speaker 1: They're the traditional custodians of the lands, the waterways and
0:10
Speaker 1: the skies all across Australia. We thank you for sharing
0:14
Speaker 1: and for caring for the land on which we are
0:16
Speaker 1: able to learn. We pay respects to elders past and present,
0:19
Speaker 1: and we share our friendship and our kindness.
0:22
Speaker 2: She's on the Money, She's on the Money.
0:45
Speaker 3: Hello, and welcome to She's on the Money, the podcast
0:49
Speaker 3: from Millennials who want financial Freedom.
0:51
Speaker 1: The last few.
0:52
Speaker 3: Years have been chaotic, to say the least. From bushfires
0:56
Speaker 3: and floods to a pandemic and a couple of wars.
1:00
Speaker 3: The world has been through a lot in recent times,
1:02
Speaker 3: and if you're anything like us, you've probably wanted to
1:05
Speaker 3: help out struggling communities by donating to a good cause.
1:08
Speaker 3: But how do we decipher where our money should go
1:11
Speaker 3: and how can we budget for it? My name is
1:14
Speaker 3: Georgia King, and joining me to answer these questions and
1:16
Speaker 3: more is the woman whose love language is giving Victoria divine.
1:21
Speaker 3: You have lots of feelings about this one.
1:23
Speaker 1: My love language is giving tell me I'm wrong, Yeah,
1:26
Speaker 1: you're not wrong. It's also words of affirmation. So if
1:30
Speaker 1: you're good about it, love language is giving. Also, she's
1:33
Speaker 1: really nice, you'd have actually been much better. But I
1:37
Speaker 1: have a lot of feelings on this, and come what
1:40
Speaker 1: may I feel like this could be an episode that
1:44
Speaker 1: divides a lot of us, not in a bad way,
1:46
Speaker 1: but I think that a lot of people have colorful
1:48
Speaker 1: opinions on giving in philanthropy and whether you should do
1:52
Speaker 1: it or not, or whether you should care about yourself.
1:54
Speaker 1: But I feel like there's a lot to be learned
1:57
Speaker 1: when you give. Like I genuinely am a believer that
1:59
Speaker 1: the more you give, the more you get back. And
2:02
Speaker 1: there would hope that you know, even with trees on
2:04
Speaker 1: the money, you guys are seeing that the more that
2:06
Speaker 1: we give to you, the more that comes back our
2:09
Speaker 1: way in love, obviously in being able to run a business.
2:12
Speaker 1: But gee, we are not here today to convince you.
2:15
Speaker 1: But today I guess we're here to give you some
2:16
Speaker 1: context and unpack some points around charity and philanthropy and
2:20
Speaker 1: give you the information that you need to make a
2:23
Speaker 1: conscious and educated decision around it. Today we've got some
2:27
Speaker 1: hot stats, some history and some context around what giving
2:31
Speaker 1: in Australia means and the difference between charity and philanthropy
2:35
Speaker 1: and how does it work and what does it mean
2:37
Speaker 1: and ways that you can give back? Are we're going
2:39
Speaker 1: to talk about the ick factor, g king the I
2:42
Speaker 1: Are we going to talk about tax and some tips
2:45
Speaker 1: for working it into your budget and much much more.
2:47
Speaker 1: Obviously I'm very passionate about this area. Can't wait.
2:50
Speaker 3: I can't believe it's taken us like two and a
2:51
Speaker 3: half years to talk about this.
2:52
Speaker 1: I mean, I feel like it's been intertwined in the
2:55
Speaker 1: conversations that we've had historically, Like it's not a surprise
2:58
Speaker 1: that we're talking about it officially on a podcast. But
3:02
Speaker 1: I feel like giving has always been a part of
3:03
Speaker 1: our budgets and always been a part of what She's
3:05
Speaker 1: on the money does, maybe not so visibly though, So
3:08
Speaker 1: now is the time to, you know, really talk about
3:10
Speaker 1: what it means to us.
3:12
Speaker 3: Let's begin be by defining the difference between charity and philanthropy,
3:17
Speaker 3: because I kind of thought they were the same thing.
3:19
Speaker 1: People might think that nice. That's the different nice. It's
3:22
Speaker 1: not all about where the money is going necessarily, the
3:25
Speaker 1: simple explanation here is that charity aims to relieve the
3:30
Speaker 1: pain of a particular social problem, whereas philanthropy attempts to
3:34
Speaker 1: address the root cause of that problem. So that's kind
3:37
Speaker 1: of cool. Now you're more educated, we can be done
3:39
Speaker 1: with the episode. There's a little more to it. There's
3:42
Speaker 1: not a bit more to it than that, you are correct.
3:44
Speaker 1: So charity would meet the immediate needs of somebody, so
3:47
Speaker 1: like providing them with food and water and shelter and
3:50
Speaker 1: medical care. And philanthropy actually looks more at identifying the
3:54
Speaker 1: root causes of systemic issues and making the world a
3:57
Speaker 1: better place by tackling societal problems at their roots. And
4:00
Speaker 1: there's obviously a lot more privilege in being able to
4:04
Speaker 1: do philanthropy than just charity, obviously given how big the
4:08
Speaker 1: impact is. So charity is probably more what we would
4:11
Speaker 1: be able to contribute to on a smaller scale. Yeah,
4:14
Speaker 1: And philanthropy is often a bit bigger. It can be
4:17
Speaker 1: made up of lots of lots of people donating to
4:19
Speaker 1: that particular philanthropic cause. I think today we're going to
4:23
Speaker 1: talk a little bit more about charity and what that
4:25
Speaker 1: means and how it works for us.
4:27
Speaker 3: A couple of stats for you, v lord. All right,
4:29
Speaker 3: hi the girl, she's come in early in December twenty twenty,
4:34
Speaker 3: they were around fifty eight thousand, six hundred registered charities
4:38
Speaker 3: in Australia.
4:38
Speaker 1: That's pretty heaps. That's heaps, isn't it. That doesn't mean
4:41
Speaker 1: that they're super big and really well known though, like,
4:43
Speaker 1: ok around fifty eight thousand massive charities, they.
4:45
Speaker 3: Should be quite small, right, Okay, So the Charity's Aid
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Speaker 3: Foundation rates Australia as the eighth highest of more than
4:51
Speaker 3: one hundred and forty countries over ten years because we're
4:54
Speaker 3: nice humans of the world Giving Index, with three in
4:57
Speaker 3: five Australians making a financial donation to a.
4:59
Speaker 1: Charity see Nice Humans.
5:01
Speaker 3: As expected, the pandemic put financial stress on the sector,
5:05
Speaker 3: with total giving falling around seven point one percent in
5:08
Speaker 3: twenty twenty and a further twelve percent in twenty twenty one.
5:11
Speaker 3: That's interesting, good statscal I. Actually that gives us a
5:15
Speaker 3: bit of context.
5:16
Speaker 1: And then also furthering that, my stat that I'm going
5:18
Speaker 1: to share is in twenty seventeen, it's like twenty eighteen,
5:22
Speaker 1: four point four million individual taxpayers claimed a total of
5:26
Speaker 1: three point seventy five billion dollars as tax deductible donations
5:30
Speaker 1: compared with four point five two million claiming three point
5:33
Speaker 1: eight four billion the year before. So gee, this is
5:37
Speaker 1: consistent with the trends that we've seen over the last
5:40
Speaker 1: ten years that actually show, sadly a smaller proportion of
5:44
Speaker 1: Australians are giving, but those who are giving are giving more. Okay, interesting, right,
5:49
Speaker 1: they're kind.
5:49
Speaker 3: Of wonder why.
5:51
Speaker 1: I wonder why as well, given how prevalent charity is now,
5:55
Speaker 1: Like we're on social media, people are sharing their causes left,
5:57
Speaker 1: right and center. Like, I don't think that there's been
6:00
Speaker 1: a week I've been on social media that I haven't
6:02
Speaker 1: seen a gofund me pop up, Like, I just feel
6:04
Speaker 1: like charity is massive. So the fact that less people
6:07
Speaker 1: are doing it, what does that mean? Yeah? I don't know.
6:11
Speaker 3: Maybe that's just like too much decisions.
6:13
Speaker 1: And aaly's this paralysis.
6:14
Speaker 3: Maybe that's what I was trying to say.
6:16
Speaker 1: Trust I don't know. We're going to break it down
6:18
Speaker 1: in a hot second, though.
6:19
Speaker 3: We are, Eila, outside of the world of benefit Gala's
6:24
Speaker 3: hospital wing donations and other shall we say, like Champagne
6:28
Speaker 3: and big name philanthropy. Why do the rest of us
6:31
Speaker 3: tend to give just because we're little legends.
6:34
Speaker 1: I think it's because we're little legends, so I think
6:36
Speaker 1: that we know that supporting our community is really important,
6:39
Speaker 1: or I would hope that we know that. But there
6:41
Speaker 1: was giving study done by Giving Australia in twenty sixteen
6:44
Speaker 1: and they reported the top three reasons why people were giving,
6:48
Speaker 1: and these top three reasons were someone said it's a
6:50
Speaker 1: really good cause slash charity and thirty nine percent of
6:53
Speaker 1: people said that. The second reason was they had respect
6:57
Speaker 1: for the work it does and that was twenty one percent,
7:00
Speaker 1: and the third one was that they had sympathy for
7:02
Speaker 1: the people that it helps and that came in at
7:04
Speaker 1: fourteen percent, which is really exciting. But also I feel
7:08
Speaker 1: like it's nice to know that they have clarity on
7:10
Speaker 1: why they are giving, but I want to see that
7:13
Speaker 1: further broken down, Like I don't want people to be like, oh,
7:16
Speaker 1: it's a good idea, Like I would really like them
7:18
Speaker 1: to give I guess more detailed responses because I think
7:21
Speaker 1: the more we talk about it and the more reasons
7:23
Speaker 1: why you do something Georgia, the more likely you are
7:25
Speaker 1: to influence other people. And I guess I'm in a
7:28
Speaker 1: bit of a bias position here, which I probably should
7:30
Speaker 1: call out really earlier, is that I am involved in
7:32
Speaker 1: a charity. For those of you who don't know, I
7:34
Speaker 1: am the treasurer. Of course, I ended up with the
7:36
Speaker 1: motto of TLC for Kids, which is an absolutely gorgeous
7:40
Speaker 1: children's charity based here in Australia, and I have been
7:44
Speaker 1: doing that for the last three years and I am
7:45
Speaker 1: obsessed with them. I love it and I can see
7:48
Speaker 1: the impact that donating to charity has, like dollar for dollar,
7:52
Speaker 1: like we do these measurements that show us exactly where
7:55
Speaker 1: every dollar is going and how much of every dollar
7:57
Speaker 1: donated actually makes it to the kids, as opposed to
8:01
Speaker 1: you know admin costs and you know rent and stuff
8:03
Speaker 1: like that which we have to pay as a charity.
8:06
Speaker 1: Like we exist as a business, but we are obviously
8:08
Speaker 1: and not for profit and all of that goes back
8:11
Speaker 1: to the charity and back to the people it impacts.
8:13
Speaker 3: That's really cool that you get to see that breakdown.
8:16
Speaker 1: It is so special.
8:17
Speaker 3: Yeah, a criticism of donating to charities that like, none
8:20
Speaker 3: of it will actually get to the person that needs it.
8:21
Speaker 3: It's all just admin costs, as I mentioned, help.
8:24
Speaker 1: To you as the individual to do the research right,
8:27
Speaker 1: So I'm very critical in this space because I'm so
8:30
Speaker 1: close to it. Right, But every charity in Australia has
8:33
Speaker 1: to publish the annual report. It has to be public
8:36
Speaker 1: because you are a registered charity in Australia. You obviously
8:39
Speaker 1: get a number of tax benefits for doing that, and
8:42
Speaker 1: it's it's a good thing. But if you are genuinely
8:44
Speaker 1: interested in donating to a particular cause, maybe do a
8:48
Speaker 1: deep dive into the charity and understand what they do
8:50
Speaker 1: and how they do it. Because something that really frustrates
8:53
Speaker 1: me and this, you know, I understand that a CEO
8:55
Speaker 1: deserves to get paid at a CEO level, but sometimes
8:59
Speaker 1: I think in char they're making it a bit of
9:01
Speaker 1: a joke. Like I look at the way TLC for
9:03
Speaker 1: Kids is run and I'm just so proud to work
9:06
Speaker 1: for a company that is so transparent and cares so
9:08
Speaker 1: much more about the kids than they do themselves. It's
9:11
Speaker 1: an argument sometimes to you know, make sure that they're
9:14
Speaker 1: paying themselves properly because they care so much more about
9:18
Speaker 1: you know, the charity. But then you look at similar
9:20
Speaker 1: charities or charities that are you know, benefiting similar demographics,
9:24
Speaker 1: and you see that they're CEOs on a million dollars
9:26
Speaker 1: a year and you're like, are they doing it for
9:28
Speaker 1: the right reasons? It shouldn't take a million dollars to
9:31
Speaker 1: have somebody running that business or running that charity. So
9:34
Speaker 1: I think we really need to break it down. If
9:36
Speaker 1: you're going to donate to charity, great, donate to causes
9:39
Speaker 1: that make sense to you. But if you're worried about it,
9:42
Speaker 1: make sure that you're doing the research. And because charity
9:45
Speaker 1: in Australia is arguably so transparent, you should be able
9:49
Speaker 1: to find the information so that you can go, well,
9:51
Speaker 1: how much of it is going to kids? You know
9:54
Speaker 1: how many things were sent out like how can we
9:57
Speaker 1: measure that? What does that mean? And you know who's
10:00
Speaker 1: on their board? Do I like them? Do I not
10:02
Speaker 1: like them? Am I supporting this? Yet? I think there's
10:04
Speaker 1: a lot to it that a lot of us don't
10:07
Speaker 1: think about because you just go, it's chucking two dollars
10:10
Speaker 1: in the bucket when they come.
10:11
Speaker 3: Around, right, And it's so much more than that to
10:14
Speaker 3: me interesting on a more of a group level. V
10:18
Speaker 3: Workplace giving is a thing, right.
10:20
Speaker 1: It's a massive thing and it's just another way that
10:22
Speaker 1: we give, right, like workplace giving is essentially a joint
10:25
Speaker 1: relationship between the employers, employees and charities that actually enables
10:29
Speaker 1: individuals to donate a proportion of their pre tax salary,
10:33
Speaker 1: which we love. And some employers and I love this
10:36
Speaker 1: g they actually match staff donations because the ATO in
10:41
Speaker 1: twenty nineteen released some stats that said two hundred one thousand,
10:45
Speaker 1: two hundred and thirty seven Australians donated through workplace giving
10:49
Speaker 1: in twenty nineteen. That's pretty cool. The average donation was
10:53
Speaker 1: actually two hundred and fifteen dollars. Chunky boy, that's nice.
10:57
Speaker 3: Very decent.
10:57
Speaker 1: More than sixty six million dollars donated through workplace giving
11:01
Speaker 1: platforms that did include the employee matchup program though, just
11:05
Speaker 1: be aware. And those that were aged, I love this one.
11:09
Speaker 1: Those that were under thirty four, Gee, they're the biggest givers.
11:12
Speaker 3: Legends.
11:13
Speaker 1: What legends we are both under thirty four For those
11:16
Speaker 1: listening along, Yeah, yeah. Can I ask why workplaces offer this?
11:21
Speaker 1: Is other tax benefits to them? Is it good pr
11:24
Speaker 1: or are they just good blocks? Look, there can be
11:26
Speaker 1: tax benefits to donating to charity, absolutely, And you know what,
11:30
Speaker 1: there are some people who definitely donate to charity so
11:33
Speaker 1: that they don't have to pay to the tax office.
11:35
Speaker 1: I don't think that's the worst thing in the world.
11:37
Speaker 1: Like I would much prefer people who need it to
11:40
Speaker 1: get it, but I just would want to be doing
11:42
Speaker 1: it for the right reasons. I think it's really really
11:45
Speaker 1: important to understand that, yes, you can claim it on
11:48
Speaker 1: your tax actually and get tax back for it. But
11:50
Speaker 1: I'm pretty sure your donation has to be more than
11:52
Speaker 1: two dollars to be eligible. Okay, seems fair. Uh huh.
11:55
Speaker 3: And private ancillary funds, what are they?
11:57
Speaker 1: A path, a PAAF. In the philanthropic world, we refer
12:01
Speaker 1: to them as paths, and a path actually enables any
12:04
Speaker 1: individual or a family or an organization to put money
12:07
Speaker 1: aside in trust to support charities over the long term.
12:11
Speaker 1: I'm obsessed with this idea. Literally, it is all I
12:14
Speaker 1: talk about. Ask the TLC for Kids board. I'm like, path,
12:17
Speaker 1: very good idea. One day will be big enough to
12:20
Speaker 1: have one, and it will be really incredible. And the
12:23
Speaker 1: reason I'm so obsessed with it is because g all
12:25
Speaker 1: you hear me talk about is investing in the power
12:27
Speaker 1: of investing. And what happens when you have a path
12:30
Speaker 1: is that you can actually put money into this and
12:34
Speaker 1: have it invested and then the dividends forever to go
12:37
Speaker 1: to a charity so you can have a long lasting
12:39
Speaker 1: impact instead of just donating two dollars here and there. Obviously,
12:43
Speaker 1: this is very I don't want to say elitist, but
12:46
Speaker 1: you would be in a very privileged position to be
12:49
Speaker 1: able to establish a path. They are not cheap because
12:52
Speaker 1: whenever you establish them, they are their own entities, they
12:55
Speaker 1: have their own tax returns, they have a lot of
12:56
Speaker 1: responsibilities that need to be met. But it is very,
13:00
Speaker 1: very cool to think that there are a lot of
13:02
Speaker 1: really wealthy families in Australia who have established these paths
13:06
Speaker 1: so that they can benefit the community and charity and
13:09
Speaker 1: the world basically forever. And I think that's really cool
13:12
Speaker 1: that Israel. I've never heard of a path, never heard
13:15
Speaker 1: of a path. Now you're a path genius.
13:18
Speaker 3: Exactly right. We will move away from paths. On the
13:20
Speaker 3: other side of the break, we will be talking about
13:23
Speaker 3: other ways of giving back. So don't go anywhere, guys.
13:30
Speaker 1: All right, gee, you told us that you were going
13:32
Speaker 1: to tell us other ways we can give back. What
13:34
Speaker 1: are they?
13:35
Speaker 3: Well, not all of us can afford to contribute to
13:39
Speaker 3: causes financially one hundred percent, so giving our time. I mean,
13:43
Speaker 3: we saw it very recently up in northern New South
13:46
Speaker 3: Wales and Queensland, the horrible floods. People were popping on
13:49
Speaker 3: their gun boots getting out there and shoveling that mud
13:52
Speaker 3: out of those destroyed homes. It was so heartening to see,
13:55
Speaker 3: also so horrible. Of course, thoughts are with everyone affected
13:58
Speaker 3: up there, But there are many meaningful ways that we
14:01
Speaker 3: can affect change without actually putting any money on the line.
14:05
Speaker 1: Right, absolutely there are, And I guess that's a really
14:08
Speaker 1: good place to point out that you're really privileged if
14:10
Speaker 1: you can give money to charity. Like how special is
14:13
Speaker 1: it to be in a financial position that you have
14:16
Speaker 1: enough money for you, George, but you also have enough
14:18
Speaker 1: money to share for somebody else. When you give, you
14:22
Speaker 1: often give with no expectation of return, and that's what's
14:25
Speaker 1: happening with charity. You're not giving to them in the
14:27
Speaker 1: hope that you get a solid investment return. You're giving
14:31
Speaker 1: because it is arguably one of the right things to do,
14:34
Speaker 1: and it's something that a lot of us feel like
14:36
Speaker 1: we should be doing, but we just don't have the
14:38
Speaker 1: budget for it. Like you might be a young couple
14:41
Speaker 1: and you're desperately saving for your first home, and that's
14:43
Speaker 1: okay if it's not part of your budget. I would
14:45
Speaker 1: love to think that over time it could be built
14:48
Speaker 1: in and from little things, big things grow. It's been
14:50
Speaker 1: a while since I said that on the spaction. We're
14:53
Speaker 1: bringing it back. We're bringing it back. G But it's
14:56
Speaker 1: one of those things that if it's in line with
14:58
Speaker 1: your budget, that's okay. If it's not, also okay. But
15:01
Speaker 1: it's not just about money. It can sometimes be about
15:04
Speaker 1: the thought. It can be about consistently being a kind
15:06
Speaker 1: person and helping others where you can and where is feasible.
15:10
Speaker 1: But it could also be about volunteering some time, it
15:13
Speaker 1: could be about mentoring somebody. Like I am so wildly
15:17
Speaker 1: passionate about this, I'm also really passionate about talking about
15:20
Speaker 1: the difference between volunteering and you know, giving hands on
15:23
Speaker 1: support versus donating money. And I feel like sometimes people
15:27
Speaker 1: really want to just get their hands sturdy, and they
15:29
Speaker 1: want to get into the nitty gritty of it and go,
15:31
Speaker 1: oh my gosh, gee, like we spent a whole day
15:34
Speaker 1: out helping pack bags for the homeless, or you know,
15:37
Speaker 1: we went down to this soup kitchen or we did
15:39
Speaker 1: this or we did that, and you go, that is
15:41
Speaker 1: really great. And for a young person who doesn't have
15:44
Speaker 1: a lot of money, that is such a fantastic and
15:47
Speaker 1: really beautiful way to give back, because we've got to
15:51
Speaker 1: be honest with you. Sometimes that can be really confronting.
15:54
Speaker 1: It's not easy to change your circumstance and go and
15:58
Speaker 1: you know, be a part of that. And I adore it.
16:00
Speaker 1: I think it's really important. But on the flip side,
16:04
Speaker 1: for people who are much wealthier, you know what, if
16:07
Speaker 1: you're a high flying ceo, is your time best used
16:11
Speaker 1: down at the soup kitchen serving or is it better
16:14
Speaker 1: for you to work a few more overtime hours so
16:17
Speaker 1: you can donate some more money to charity so that
16:20
Speaker 1: you can fund the soup kitchen for the next few
16:22
Speaker 1: weeks or do you know what I mean? Like, I
16:24
Speaker 1: feel like we need to have this conversation around trade
16:27
Speaker 1: off and what that means, because too often people think
16:31
Speaker 1: money's the only way to donate because that's what the
16:33
Speaker 1: wealthy do. Whereas we do need hands on deck, We
16:36
Speaker 1: do need people, you know, turning up in gum boots
16:38
Speaker 1: with a shovel. But sometimes we also need the financial support.
16:42
Speaker 1: So all of that is well and good, and we're
16:44
Speaker 1: talking about this time versus value trade off here g
16:47
Speaker 1: But at the end of the day, I, personally, and
16:50
Speaker 1: I know a lot of other people get a lot
16:52
Speaker 1: out of volunteering and doing the nitty gritty and getting
16:56
Speaker 1: your hands dirty, and I feel like it keeps us
16:58
Speaker 1: connected with our communit unity and it genuinely makes you
17:01
Speaker 1: feel like you're contributing to your community and so reporting
17:04
Speaker 1: them and it's so nice connecting with people when you
17:06
Speaker 1: were there. It's not necessarily about just throwing money at
17:09
Speaker 1: the problem and hoping it's not a thing. And I mean,
17:11
Speaker 1: if that's what you want to do, you're more than
17:13
Speaker 1: welcome to. But there is this balance between Okay, giving
17:16
Speaker 1: money is really important, but also sometimes it's equally important
17:20
Speaker 1: to learn to get in there and to be a
17:23
Speaker 1: part of that community and see what they can do
17:25
Speaker 1: and how they can do it, and.
17:27
Speaker 3: Like connecting with people. I also found. I used to
17:30
Speaker 3: volunteer at this legendary place called Orange Sky Laundry. Oh yeah,
17:34
Speaker 3: I remember, Yeah, So we'd go down every Monday night.
17:36
Speaker 3: We had these vans. One had showers in it, and
17:39
Speaker 3: the other had washing machines and we would wash and
17:42
Speaker 3: dry the clothes of people doing it tough on the
17:44
Speaker 3: streets of Melbourne or in low income housing situations, and
17:48
Speaker 3: it was just the best, Like it was so like
17:51
Speaker 3: the majority of those people just wanted to have a
17:53
Speaker 3: big old yarn, someone that like a friendly face checking
17:56
Speaker 3: with every Monday, and it was it was the best.
17:58
Speaker 3: And you do you get so much out of it.
18:00
Speaker 3: I'm sure I got much more out of it than
18:01
Speaker 3: they did.
18:02
Speaker 1: I know when you kind of feel a little bit guilty.
18:04
Speaker 1: I've done that before as well, and I just feel
18:06
Speaker 1: like I end up walking away feeling so nourished, and
18:08
Speaker 1: I've heard these beautiful stories and I've got to be
18:10
Speaker 1: a part of their community. And usually if you are
18:14
Speaker 1: dealing with that demographic, they're so welcoming. They just want
18:16
Speaker 1: to have a chat with you, like they just want
18:18
Speaker 1: to sit down and have a cup of tea, and
18:20
Speaker 1: oh my gosh, like I can afford the time to
18:22
Speaker 1: do exactly, I absolutely can do.
18:23
Speaker 3: That, yeah, one hundred percent. All right, let's move on
18:26
Speaker 3: a little bit here. What sorts of things would you
18:29
Speaker 3: say are good to take into consideration in this world
18:32
Speaker 3: of charity and philanthropy outside of the fact that there
18:35
Speaker 3: are always going to be some causes that we connect
18:38
Speaker 3: with more than others.
18:39
Speaker 1: Oh absolutely, And I do think it's genuinely important to
18:41
Speaker 1: be connecting with causes that you feel passionate about. It's
18:45
Speaker 1: not about saying this is the charity of choice. You
18:48
Speaker 1: need to go and support this particular one, because you're
18:50
Speaker 1: more likely to have sustainable change and sustainable donations if
18:55
Speaker 1: you really feel connected with that. And that's to me
18:58
Speaker 1: really important to also donate in line with your values.
19:01
Speaker 1: But that's one of the things that can get caught
19:03
Speaker 1: up in the charity in philanthropic space, right like your
19:07
Speaker 1: values might not be being met. And gee, I'm sure
19:09
Speaker 1: you've heard of it before as well, But charities exist
19:12
Speaker 1: where they do really good work and they support really
19:15
Speaker 1: great causes, but then they're not supporters of our friends
19:18
Speaker 1: in the lgbtqia plus community, or they're not doing the
19:22
Speaker 1: right thing by our indigenous friends, or they're not doing
19:25
Speaker 1: the right thing when it comes to having really exorbitant
19:28
Speaker 1: organizational CEO costs. And I touched on all of this
19:31
Speaker 1: stuff before, but we really need to make sure that
19:33
Speaker 1: they're not in a way greenwashing us and telling us
19:36
Speaker 1: they do this really great thing, and then it's not
19:39
Speaker 1: actually translating, and a good way of understanding that is
19:42
Speaker 1: kind of going, all right, well, if I donated a dollar,
19:45
Speaker 1: how much of that dollar would actually go to the cause?
19:47
Speaker 1: And thinking about charity in that way, for me feels
19:51
Speaker 1: like it's a bit more impactful. It's a bit better
19:54
Speaker 1: to think of it that way because you're okay, well,
19:56
Speaker 1: as much of that dollar is going to charity as possible,
19:59
Speaker 1: whereas there is some charity is where twenty percent of
20:02
Speaker 1: it ends up with the cause and the rest of
20:05
Speaker 1: the eighty years about their fancy office and their fancy
20:08
Speaker 1: CEO and supporting strategy days that they might not need.
20:12
Speaker 1: And I just I don't want to be supporting that,
20:14
Speaker 1: and I'm sure you guys don't. And the only way
20:16
Speaker 1: you're going to learn about it is if I call
20:17
Speaker 1: it out.
20:18
Speaker 3: Yeah, one hundred and as you said before, you can
20:20
Speaker 3: kind of find out how legitimate a company is by
20:23
Speaker 3: looking at their annual reports or a charity rather.
20:25
Speaker 1: Yeah, yeah, and like and charity. At the moment, I
20:27
Speaker 1: think is really important to be having a conversation about
20:30
Speaker 1: because George you mentioned that we've been through so much.
20:33
Speaker 1: We're currently going through some world wars. We've gone through
20:36
Speaker 1: bushfires at the start of COVID, then COVID happened. Then
20:40
Speaker 1: we're having the floods like we have been through it all,
20:43
Speaker 1: and that has meant that people are giving to different
20:46
Speaker 1: charities which are very very viable. It's very very important
20:49
Speaker 1: to be giving to those who need it, Like there
20:51
Speaker 1: is no way I would say, don't donate to the
20:54
Speaker 1: flood relief because we need to do something else. In fact,
20:57
Speaker 1: she's on the money donated to the flood or relief
20:59
Speaker 1: because that's really important to us. But we also need
21:02
Speaker 1: to remember that there are lots of charities throughout that
21:05
Speaker 1: time didn't survive because they didn't have the donations coming
21:08
Speaker 1: in the door that they needed. And I remember having
21:10
Speaker 1: these conversations, you know, even in TLC, how are we
21:14
Speaker 1: going to make sure that we as a charity survive
21:16
Speaker 1: this pandemic because the priority isn't necessarily on donating to
21:20
Speaker 1: a children's charity right now. I think it's important, obviously,
21:24
Speaker 1: but more often than not, charity that is front of
21:27
Speaker 1: mind usually gets serviced first, or the charities that have
21:30
Speaker 1: the really really big names and you know, I'm not
21:33
Speaker 1: going to call them out on here, but you're very
21:35
Speaker 1: likely to give to them because they have the exposure.
21:38
Speaker 1: They're in all the supermarkets. You can put the money
21:40
Speaker 1: in the tin or you know, they have these big
21:43
Speaker 1: call centers that call up and say, hey, do you
21:45
Speaker 1: want to make a donation? And I think it's important
21:47
Speaker 1: to realize that there are a lot of charities that
21:49
Speaker 1: just don't have the funds to do that, that still
21:51
Speaker 1: need supporting, especially after the pandemic we've gone through. Like
21:54
Speaker 1: it's it's crazy, but I think we need to remember
21:56
Speaker 1: that there are a lot of small charities out there
21:58
Speaker 1: doing really good things that need a lot more support.
22:02
Speaker 3: And that's exactly right. Feet Like, there are fifty eight thousand,
22:05
Speaker 3: six hundred, six hundred charities in Australia, Like not all
22:09
Speaker 3: of them are going well, it's just impossible.
22:12
Speaker 1: And I look at a lot of the charities, I'm like, okay, cool,
22:15
Speaker 1: Like is this actually about the kids? Is it actually
22:17
Speaker 1: about the cause or is it about you having a
22:20
Speaker 1: big bougie charity gala because that costs a lot to
22:22
Speaker 1: host and obviously the return on investment there is significant,
22:26
Speaker 1: But like the privilege of being able to get a
22:29
Speaker 1: bunch of multimillionaires into a room to raise a million
22:32
Speaker 1: dollars for charity is gorgeous, but that is not a
22:34
Speaker 1: privilege that all charities have. So I think being able
22:36
Speaker 1: to find a charity of the lines to your values
22:38
Speaker 1: and what you want to achieve, while also funding someone
22:42
Speaker 1: that maybe isn't getting the funding that is so visible.
22:44
Speaker 3: Yeah, this kind of brings me to my next question
22:48
Speaker 3: about go fund me campaigns because these can kind of
22:51
Speaker 3: operate on a more personal level. People can put anything
22:54
Speaker 3: up there and ask for your money. Remember again, start
22:57
Speaker 3: of the pandemic, we were all going through the bushfire
23:00
Speaker 3: in certain parts of Australia and Celeste Barber the absolute legend.
23:04
Speaker 3: So fifty million dollars insane. But then what a queen
23:09
Speaker 3: later on because of I don't even know what the
23:12
Speaker 3: details were in that, but the money that she raised
23:16
Speaker 3: wasn't able to be distributed how she wanted it to be.
23:18
Speaker 2: It all went.
23:19
Speaker 1: It was heartbreaking. So what happened was she had raised
23:22
Speaker 1: all of this money, but when she signed up to
23:24
Speaker 1: the gofund me, in the terms and conditions, obviously you
23:27
Speaker 1: have to nominate a charity and if you're raising money
23:29
Speaker 1: for that charity, they like their terms and conditions are
23:32
Speaker 1: all of that money goes to the nominated charity because
23:35
Speaker 1: if you have donated to that, you weren't donating for
23:38
Speaker 1: anybody else. You were donating for that specific cause, So
23:42
Speaker 1: it has to go to that cause. And she obviously
23:44
Speaker 1: established it not knowing she was going to raise fifty
23:48
Speaker 1: million dollars, and unfortunately all of it had to go
23:51
Speaker 1: to one charity instead of being distributed between a number
23:55
Speaker 1: of different charities and locations. So I think it ended
23:58
Speaker 1: up only benefiting one state as opposed to a number
24:01
Speaker 1: of states. Yeah, which is upsetting, but that's the nature
24:05
Speaker 1: of gofund me, right, Yeah, Okay, so that organization is
24:08
Speaker 1: obviously putting the money to good use. It's not anything
24:11
Speaker 1: to do with them, like they didn't choose that they
24:14
Speaker 1: wanted to share it. But then charities also have particular
24:17
Speaker 1: mandates to be a charity, so they can only spend
24:21
Speaker 1: on certain things, and unfortunately in the mandates, they weren't
24:25
Speaker 1: able to distribute it to other charities because it's against
24:27
Speaker 1: what their boards say, it's against everything that they were
24:29
Speaker 1: established for. Because obviously that charity does this one particular thing,
24:33
Speaker 1: and they've got to do that one particular thing. The
24:35
Speaker 1: money can't be spent on anything else. So they're good people,
24:38
Speaker 1: they're doing good things. It's just a bit of a
24:40
Speaker 1: fickle platform, and I'm a bit I guess triggered, especially
24:44
Speaker 1: after the pandemic and seeing, you know, on a current
24:47
Speaker 1: affair that people were raising money for themselves but they
24:50
Speaker 1: weren't their authentic selves. Like it was really upsetting to
24:53
Speaker 1: think that you can have something on your Facebook feed
24:56
Speaker 1: or your Instagram feed pop up and you go, wow,
24:58
Speaker 1: that's such a special cause. Really connect with Georgia. She
25:02
Speaker 1: really needs that, and you donate, and then later find
25:05
Speaker 1: out that maybe they weren't that truthful, Like it just
25:08
Speaker 1: gives me the ick, Like that makes me feel honestly
25:11
Speaker 1: sick that people are donating and not being transparent about that.
25:14
Speaker 3: It's also enormously I'm just looking at the numbers now,
25:18
Speaker 3: there are seventy billion donors donating nine billion dollars as
25:22
Speaker 3: of twenty twenty one.
25:24
Speaker 1: YELP and ten thousand new campaigns are started every day,
25:29
Speaker 1: four million dollars raised every day.
25:32
Speaker 3: So it's super effective, super effective, but maybe it is
25:37
Speaker 3: pretty open to scammers being able to.
25:38
Speaker 1: Super effective, yeah, but also super accessible to start a
25:42
Speaker 1: course use. You can raise money for anything, and I've
25:44
Speaker 1: you know, donated to different things over time on GoFundMe
25:46
Speaker 1: that I want to support, but they might not necessarily
25:49
Speaker 1: be official charities. I might not necessarily be causes that
25:52
Speaker 1: are registered, but I want to support it, and I'm
25:55
Speaker 1: happy with the decisions I've made. But I think gofund
25:58
Speaker 1: me is more about the visibility and my opportunity created
26:01
Speaker 1: to make tangible change. And that's really great. But I
26:04
Speaker 1: just hate that there are people out there that exploit
26:06
Speaker 1: platforms like that, Like they shouldn't be allowed to do that. Yeah,
26:10
Speaker 1: they should be ramifications if you do that.
26:12
Speaker 3: Okay, Well, I feel like the moral of the story
26:15
Speaker 3: today is that like intention is the most important thing
26:18
Speaker 3: if you're donating your time or your money, it's the
26:21
Speaker 3: intention that matters, right, It's like less about what you
26:24
Speaker 3: can afford on that thov Have you ever experienced an
26:28
Speaker 3: eke after.
26:30
Speaker 1: When I see gofundmes. No, not when I've donated, but
26:33
Speaker 1: when I've seen gofundmes where I feel like they're not
26:36
Speaker 1: super transparent and then I see them blowing up and
26:39
Speaker 1: I'm like, well, why are we doing this? Like this
26:41
Speaker 1: is not a good thing to be putting your money towards.
26:44
Speaker 1: But like each to their own, it's not my decision
26:47
Speaker 1: what you donate too, And I mean that's probably me
26:49
Speaker 1: being a little bit unnecessarily judgmental.
26:51
Speaker 3: All right, before we head off for the day, V,
26:54
Speaker 3: let's chat through the tax implications of all of this.
26:57
Speaker 3: What do we need to be mindful of.
26:58
Speaker 1: Obviously this is cheese on the money, we do need
27:00
Speaker 1: to talk about tax. So if you are going to
27:02
Speaker 1: donate to a charity, please make sure that they are
27:04
Speaker 1: a DGR and that is a deductible gift recipient, which
27:08
Speaker 1: means that you are able to claim it on tax.
27:10
Speaker 1: It's not necessarily about you being able to claim that
27:13
Speaker 1: because like you donated it with goodwill, you're not trying
27:15
Speaker 1: to get a benefit out of it. But it means
27:18
Speaker 1: they're more legitimate. So g it also has to be
27:21
Speaker 1: a legitimate gift or donation. You can't just fudge it
27:24
Speaker 1: and put it on your tax return and hope it
27:26
Speaker 1: will stick. It has to be legitimate, and that is
27:28
Speaker 1: you voluntarily transferring money or a property without receiving or
27:32
Speaker 1: expecting to receive any type of material benefit in return,
27:36
Speaker 1: because obviously that would be a little bit dodgy. It
27:40
Speaker 1: must be as well, George, money or property. It can't
27:43
Speaker 1: be anything else. Like it can be financial assets. You
27:46
Speaker 1: could donate shares, you could donate cryptocurrency, but it has
27:50
Speaker 1: to be an actual asset and it needs to comply
27:53
Speaker 1: with relevant gift conditions. So for some dgrs that do
27:57
Speaker 1: have income tax laws, there are added canations that affect
28:00
Speaker 1: the type of deductible gifts that they can receive, So
28:03
Speaker 1: important to just be aware of that. Just make sure
28:05
Speaker 1: they're they're legitimate. If you really are worried, look into them,
28:09
Speaker 1: see what they're up to, and you know, have a
28:11
Speaker 1: think about what means the most to you.
28:13
Speaker 3: Yeah, well, I think that's the perfect place to leave.
28:16
Speaker 1: It there, v Perfection. Do you want to wrap ith?
28:18
Speaker 3: Yeah, yeah, let's wrap it before we head off. Remember
28:21
Speaker 3: guys that the advice shared on She's on the Money
28:23
Speaker 3: is general in nature and does not consider your individual circumstances.
28:27
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28:30
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28:37
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28:47
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28:52
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