This morning on the CBC Eyeopener, Andrea McManus the chair of the Association of Fundraising Professionals was interviewed on effective philanthropy.  Some key points that she raised include:

• It's not only about the cost of raising a dollar, but how that dollar is used
• CRA guideline says that fundraising costs should not exceed 35% of the total operating budget
• The responsibility for knowing how charitable dollars are spent falls on the shoulders of the donors
• Donors should be aware of their rights (a copy of the Donor Bill of Rights is below)

In addition to these four points, the combination of your charitable activities also have an impact on the overall effectiveness of the social issues you are trying to address.  Recently I put together an international development charity portfolio that addressed macro and micro issues - this donor is investing in an advocacy group, a front-line support agency, a funder and a charitiable social enterprise.  By combining these organizations in one "Charitable Portfolio" individuals can leverage the effectiveness of their donations and community investments. 

For example, if you donate to an organization that is addressing maternal and child health in the developing world and your government cuts the funding to that area of need, then your charitable donation will have less effect because that organization is now forced to find replacement support from the government.  However, if you also invest in an advocacy group that has the ear of the government in the area of child and maternal health then the support you are giving at the advocacy level tickles down to the support you are providing the front-line agency.  It's this combination that makes for strategic philanthropy.

And you don't have to have thousands of dollars to do this!  In another case, a client is looking at investing under $5,000 to domestic violence organizations in the city.  By identifying how the various social service agencies addressing domestic violence work together we were able to engage two agencies that feed off of each other, thereby strengthening his donation.

"What Most Needs Doing?" is a workshop offered each fall in time for the holiday giving season. If you would like to learn more about how to create a strong charitable portfolio please join us for this webinar on Sept. 29th.  Cost is $25 and the proceeds go towards Dexterity Consulting's corporate citizenship program.