In tough times it's even more important to give
With all of the terrible recent financial news many folks are hunkering down and focusing inwards which is understandable-- but it avoids the reality of the many who are suffering in our own communities. I'm glad that local SVMBers are community minded, as I attended a recent gathering where SVMBers shared that they give generously to schools for indigent local children, more generously than their own kids' schools. It's that kind of thinking that I wanted to call out as really wonderful, and to share about an organization I'm passionate about that follows in that sentiment, whose board I serve on.
In terms of giving, there are important differences in the impact that various means have. If your employer provides matching funds for your giving, that may be the most effective way to maximize your giving. If not, there 2 main differences in community based grantmaking nonprofits: pass-thru and endowment based organizations. A pass-thru distributes all of the funds received every year, such as the Palo Alto Weekly Holiday Fund. An endowment distributes grants from the proceeds of investing the endowment, and varies less in year-to-year giving compared to a pass-thru since giving increases as the endowment grows.
The Palo Alto Community Fund is a great example of the dependability that an endowment based fund has. Over the last 30 years, it has been a consistent support to local nonprofits to the tune of $1.6M in 257 grants. This year, the endowment shrank only 15% and proceeds will continue to be able to be distributed, which may be of significantly greater impact than other local pass-thrus. Last year we were only able to support almost half of the eligible worthy causes that applied -- I worry that this year we'll see many more applications.
However you choose to give: your time, treasure, or talent-- I'd encourage you to do so. It's sorely needed and tough times like these.
Original post on SVMB by Enoch Choi, MD who also blogs and answers questions at MedHelp.















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