Giving for beginners: real philanthropy—not simply charity—is in its infancy in Latin America. But that's changing fast

Latin Trade, Jan, 2005 by Greg Brown

Working out the details of how to give is only half the battle, say experts in the field. Knowing where is just as crucial. It's important to be able to separate effective groups from amateurs. Rule No. 1: Know thyself.

Consider your own values, what really matters to you: children, arts, your faith, the environment. Find out which organizations are doing the kind of work you're interested in doing, says Terry Axelrod, CEO and founder of Raising More Money in Seattle, which trains non-profit on sustainable fundraising from individual donors. "Talk to them, go see them, they'll be ecstatic to see you. Before you even talk money, see what they're doing," she says. "Be sure that whatever you choose is something very important to you, not just the issue of the day."

Also, consider what a gift would do long-term in the form of an endowment, Axelrod suggests. A series of checks over a decade could have much more impact as a single large gift in the form of securities which throws oft" money for decades to come. Consider, too, giving something that can be even more valuable than cash: knowledge and time. "What a lot of wealthy donors have to give is sometimes beyond money. It's experience, insight," she says.

Another key is to focus on how the charity or non-governmental organization works. "I think that they should work in geographic terms,' says Joao Meirelles Filho, director of Instituto Peabiru, which advises non-governmental organizations on fundraising and provides technical assistance, and who himself has two decades experience as a fundraiser in Brazil. Once a donor selects a cause--hunger, housing, education, and so forth--it helps to settle on a manageable area, he says. It can be more effective, and it fosters a connection to the people who benefit.

Of Brazil's 350,000 non-governmental groups, 10,000 work in the vast Amazon region. Nearly 100% of them focus on specific communities, according to Meirelles. "It's important to have some connection," he says. Even committing to a reduced area, many charities end up in trouble, says Meirelles, because they tackle many problems at once. "In the end, they are doing everything and nothing, he says.

Active donors can play a big role in helping groups define their mission by demanding a strict focus. In the past, many wrote checks and moved on. Recently, however, large corporations have begun to watch outcomes very carefully, a fast-moving trend, says Meirelles, and one he supports. "Donors should ask for involvement, and NGOs that receive the money should find ways to involve donors," he says.

Giving away money is emotional, but doing it well demands a certain amount of rationality, says G. Douglass Alexander, chairman of Alexander Haas Martin & Partners, an Atlanta fundraising adviser. Most philanthropists, in the end, want to know that their cash is being well-spent, and that there is a return, socially speaking, on the investment. "More wealth has been created in the last 10 or 15 years than in the history of mankind," says Alexander. "They are asking, 'I have a lot of money, now what do I do with it?'