Personal Finance: Another Perspective Your Future 1: Learning to Give

Personal Finance:Another Perspective

Your Future 1:

Learning to Give

Objectives

A. Understand what the scriptures say about money and giving

B. Understand the principles of wise giving C. Understand why we should give D. Understand the basics of wise giving

Case Study #1

Data 1: • You are sitting at home and the phone rings. It is a

person soliciting donations for an organization that you have never heard of. While you don’t want to be rude, this is not one of the charities that you choose to donate to. What do you do?

Data 2: • The difference this time is you are aware of the

charity, “The World Wildlife Fund” and would like to know more. Where do you get information on the charity, their goals, programs, or the quality of their giving?

Finding Information on Charities

One of my favorite charity websites is Charity Navigator

• http://www.charitynavigator.org They can give you lots of information about various

charities which file Form 990 with the IRS

• However, they do not include religious organizations listed as “church or convention or association of churches” which are exempt from filing Form 990.

Charity Navigator

Charity Navigator

Charitable Giving

Is “giving” a one-time event or a Christ-like attribute?

Elder Mark E. Petersen commented:• Instead of taking from our fellowmen, we must learn to give

—to be good Samaritans in very deed; to share with our less fortunate neighbors, and in reality show love for our fellowmen. So He said: “… remember the poor, and consecrate of thy properties for their support. … And inasmuch as ye impart of your substance unto the poor, ye will do it unto me. …” (D&C 42:30-31) (“Honesty, a

Principle of Salvation,” Ensign, Dec. 1971, 72.)

The Visit to Taz Murray’s Candy Store

Life is Like Taz Murray’s Candy Store

We all have our little bags of candy, the experiences we are to have while here on earth

• We have been given instructions as to what is good and bad—we have agency

If we choose wisely, we can enjoy the good

• If we fail to choose wisely, we are accountable as there are consequences for our actions

And interestingly, the more we share, the greater will be our joy later on

A. The Scriptures on Money and Giving

• It is easier for a camel to go through the eye of a needle than for a rich person to enter the kingdom of God. (Mark 10:25)

• For where your treasure is, there will your heart be also. (Luke 12:34)

• For what shall it profit a man, if he shall gain the whole world, and lose his own soul? Or what shall a man give in exchange for his soul?(Mark 8:36-37)

Money and Giving (continued)

Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed?

(For after all these things do the Gentiles seek:) for your heavenly Father knoweth that ye have need of all these things.

But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you. (Matt 6:31-33)


Think about Christ and his parables. How many of those were about money (or property/wealth)? It was no different then than it is today!

Matthew (8 of 10)The hidden treasureThe pearl of great priceThe draw-net.The unmerciful servantThe laborers in the vineyard.The two sonsThe ten virginsThe talents

Luke (9 of 12)The two debtorsThe good SamaritanThe importuned friendThe rich foolThe lost piece of silverThe prodigal sonThe unjust stewardThe Pharisee and the PublicanThe ten pieces of money


Money is the way in which we express our aspirations, our dreams, our ideals. Money can be used to build up or to tear down, to serve or to dominate, to liberate or to oppress. (Will Saunders)

Money doesn’t change us. It just reveals us to ourselves. Anonymous

B. Understand the Principles of Wise Giving

There are a number of principles of wise giving that can help us as we learn to give • 1. We are to give out of love

• We are to give out of gratitude for all that God has done for us. Paul writes,

• And though I give all my goods to feed the poor, and though I give my body to be burned, if I have not love, it profits me nothing. (1 Corinthians 13:3)

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Principles of Giving (continued)

2. We are to give sacrificially • Ours is a “sacrificial” religion

• A religion that does not require the sacrifice of all things never has power sufficient to produce the faith necessary unto life and salvation. Joseph Smith, Lectures on Faith, comp. N. B. Lundwall (Salt Lake City: Bookcraft, n.d.), p. 58.

• C. S. Lewis wrote: “If our charities do not at all pinch or hamper us, … they are too small. There ought to be things we should like to do and cannot do because our charitable expenditure excludes them.” (Mere Christianity [1952], 67).


3. We are to give wisely• We are to give within our capacity to give.

• King Benjamin counseled: “And again, I say unto the poor, ye who have not and yet have sufficient, that ye remain from day to day; I mean all you who deny the beggar, because ye have not; I would that ye say in your hearts that: I give not because I have not, but if I had I would give.” (Mosiah 4:24)

• “And see that all these things are done in wisdom and order; for it is not requisite that a man should run faster than he has strength. And again, it is expedient that he should be diligent, that thereby he might win the prize; therefore, all things must be done in order. ” (Mosiah 4:27)


4. We are to give of our abundance• There is a different type of accounting in heaven,

not of dollars and cents, but of our capacity and willingness to give.

• And he [Christ] looked up, and saw the rich men casting their gifts into the treasury. And he also saw a certain poor widow casting in thither two mites. And he said, Of a truth I say unto you, that this poor widow hath cast in more than they all: For all these have of their abundance cast in unto the offerings of God: but she of her penury hath cast in all the living that she had. (Luke 21:1-4)


5. We are to give freely according to what we have been given• We are to give of our own free will

• And again Alma commanded that the people of the church should impart of their substance, every one according to that which he had; if he have more abundantly he should impart more abundantly; and of him that had but little, but little should be required; and to him that had not should be given. And thus they should impart of their substance of their own free will and good desires towards God, and to those priests that stood in need, yea, and to every needy, naked soul. (Mosiah 18:27-28)


On the subject of giving, Elder William R. Bradford commented:• It is not the amount of money that we donate to the

Church or others that matters to the Lord. Rather it is whether we give of our abundance or of our living. We should give until it is a sacrifice to give. (William R. Bradford, “Words of Jesus: Riches,” Ensign, Feb. 2003, 52 )

On the subject of fast offerings, President Spencer W. Kimball said:• “Sometimes we have been a bit penurious (stingy)

and figured that we had for breakfast one egg and that cost so many cents and then we give that to the Lord. I think that when we are affluent … we should be very generous and give, instead of the amount we saved by our two meals of fasting, perhaps much, much more—ten times more where we are in a position to do it. I know there are some who couldn’t.” (In Conference Report, April 1974, p. 184)



Statistics on Charitable giving (1991 data)

• Charitable giving as a percent of income:

• Individuals earning 20-30K gave $1,207 or 4.8%



• Why did those who earned more money give less than half, in percentage terms, as those who made less?

• Why should our giving decrease as our blessings increase?

• Although the data is old, the results have not changed much in the succeeding years.

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What has been the Lord’s counsel on giving?• The prophet Alma recounted:

• And they did impart of their substance, every man according to that which he had, to the poor, and the needy, and the sick, and the afflicted. (Alma 1:27)


And this is entirely from the book of Bryan (this is my opinion only)• Think about giving in percentage terms, rather than

in dollar terms• Tithing is easy, it’s the other contributions that

are hard• Put those in percentage terms as well

• That way Heavenly Father will know that regardless of how much or how little you are blessed financially, your giving will always be the same

• Don’t let your giving decline as your income increases!

• In fact, over time it should likely increase


President Hinckley commented:

• You know, as I know, that when you pay your honest tithes and offerings, the windows of heaven are opened and blessings are showered down upon you. That which you give is never missed; it becomes not a sacrifice but an investment under the wondrous powers of the Almighty to bless you. (Discourses of President Gordon B. Hinckley, Volume 2, Intellectual Reserve, USA, 2005, p. 330.)


Elder F. Burton Howard wrote:

• The real reason for our mortal probation is to confront challenges, not escape them. It is to learn to give, not to learn to get. In earth life as in the university, we cannot complain about not getting passing grades if we are unwilling to take the test. There are no shortcuts to the plan of salvation. There is no exaltation without effort. We have nothing more important to do than to fully, honestly, and completely obey the laws upon which blessings are predicated. Make no mistake about it, we will reap what we sow (Galatians 6:7). (“On Giving and Getting,” New Era, Oct. 1985, 44.)

Questions

Any questions on learning the principles of wise giving?

C. Why Should We Give?

1. We have been commanded to give• The prophet Jacob taught:

• “Think of your brethren like unto yourselves, and be familiar with all and free with your substance.” (Jacob 2:17)

• President Gordon B. Hinckley stated:

• “Without sacrifice there is no true worship of God. … ‘The Father gave his Son, and the Son gave his life,’ and we do not worship unless we give—give of our substance, … our time, … strength, … talent, … faith, … [and] testimonies” (Teachings of Gordon B. Hinckley [1997], 565).

Why Give? (continued)

King Benjamin commented: • And now, for the sake of these things which I have

spoken unto you—that is, for the sake of retaining a remission of your sins from day to day, that ye may walk guiltless before God—I would that ye should impart of your substance to the poor, every man according to that which he hath, such as feeding the hungry, clothing the naked, visiting the sick and administering to their relief, both spiritually and temporally, according to their wants. (Mosiah 4:26)


2. Giving shows our love for God• King Benjamin stated:

• And behold, I tell you these things that ye may learn wisdom; that ye may learn that when ye are in the service of your fellow beings ye are only in the service of your God. Mosiah 2:17

Sister Carol B. Thomas commented:• Sacrifice is an amazing principle. As we willingly

give our time and talents and all that we possess, it becomes one of our truest forms of worship. It can develop within us a profound love for each other and our Savior, Jesus Christ. (“Sacrifice: An Eternal Investment,” Ensign, May 2001, 63.)


3. Giving helps others• King Benjamin further counseled:

• But ye will teach them to walk in the ways of truth and soberness; ye will teach them to love one another, and to serve one another. And also, ye yourselves will succor those that stand in need of your succor; ye will administer of your substance unto him that standeth in need. (Mosiah 4:16-17)


4. Giving helps us to become more like Christ!• President Marion G. Romney (1897-1988) taught:

• The Lord doesn’t really need us to take care of the poor, but we need this experience; for it is only through our learning how to take care of each other that we develop within us the Christ-like love and disposition necessary to qualify us to return to his presence. “Living Welfare Principles,” Ensign, Nov. 1981, 92; emphasis in original.


5. Giving helps us repay an un-payable debt• There is one final debt, a debt we can never repay.

And while we can never repay the debt, we can try. King Mosiah, in Mosiah 2: 20-21 states:

• I say unto you, my brethren, that if you should render all the thanks and praise which your whole soul has power to possess, to that God who has created you. . . I say unto you that if ye should serve him who has created you from the beginning, and is preserving you from day to day, by lending you breath. . .I say, if ye should serve him with all your whole souls yet ye would be unprofitable servants.

Questions

Any questions on why we give?

D. Understand Basics of Wise Giving (phone, door-to-door, or mail)

Before you give a penny!

• 1. Ask for the charity's full name and address.

• Get identification from the solicitor.

• Don't be fooled by names that look impressive or that closely resemble the name of a well-known organization.

• 2. Ask if the charity is licensed by state and local authorities.

• Registration or licensing is required by most states and many communities.

• 3. Ask if your contributions are tax deductible.

• Contributions to tax exempt organizations are not always deductible. Is it a 501c3 organization?

The Basics of Giving (continued)

4. Check out the organization with the Better Business Bureau (BBB). • Find out what percent of their donations go to

programs, fund raising, and administrative. The BBB recommends:

• 1. At least 50% of the charity's total income to be spent on programs discussed in the literature

• 2. No more than 35% of contributions to be spent on fund raising, and

• 3. No more than half of the charity's total income to be spent on administrative and fund raising costs.

• Supporting causes where these limits are not reached may not be the best use of your funds.


5. Watch out for statements such as "all proceeds will go to the charity."

• This can mean that the money left after expenses, such as the cost of written materials and fund raising efforts, will go to the charity. These expenses can make a big difference, so check carefully.

6. Don’t worry about unordered merchandise.

• If unordered items such as key rings, greeting cards or pens are enclosed with an appeal letter, remember you are under no obligation to pay for or return the merchandise.


7. When you're asked to buy candy, magazines, card, or tickets to a dinner or show to benefit a charity, be sure to ask what the charity's share will be.

• You cannot deduct the full amount paid for any such items, as the IRS considers only the part above the fair-market value of the item to be a charitable contribution. If you pay $10 for a $8 box of candy, you can only deduct $2 for tax purposes.


Once you decide to give:• 1. Do not give cash.

• Always make contributions by check and make your check payable to the charity, not to the individual collecting the donation.

• 2. Keep records of your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time.

• Although the value of your time as a volunteer is not deductible, out-of-pocket expenses (including transportation costs) directly related to your volunteer service to a charity are deductible.


3. Don't succumb to pressure to give money on the spot or allow a "runner" to pick up a contribution.

• The charity that needs your money today will welcome it just as much tomorrow.

4. Call your local BBB if a fund raiser uses pressure tactics such as intimidation, threats, or repeated and harassing calls or visits.

• Such tactics violate the CBBB's recommended Standards for Charitable Solicitations.

These ideas are from: Tips on Charitable Giving, 1986, Council of Better Business Bureaus, Inc.


What About Unwanted Mail?

• Decide in advance which charities you want to support and discard appeals from all other groups.

• Don't feel guilty about not supporting all groups writing to you. You physically and financially can’t! But you can help the most important to you!

• Stop giving to all those that mail you solicitations, and they will stop soliciting you.


What about unwanted Telephone, Door-to-Door, and Street Solicitations?• Decide in advance what your “Family Giving

Policy” is and stick with it.• I tell them: “We have a “Family Giving Policy”

that we do not give over the phone or to door-to-door salespeople over 12 years old. If you will send (or leave) material covering your charity, I will be happy to review it later and make a decision. We do not commit to anything via phone or door-to-door.”

• Rarely do I get things in the mail (or left) in response to our “Family Giving Policy.”

Other Sources

Two good locations for information on charities are:• Better Business Bureau’s Wise Giving Alliance at

www.give.org. It rates over 400 different charities. It is a great resource.

• Charity Navigator, an independent charity evaluator at www.charitynavigator.org. It works to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of America's largest charities.


President Gordon B. Hinckley said:

• Generally speaking, the most miserable people I know are those who are obsessed with themselves; the happiest people I know are those who lose themselves in the service of others. (“Whosoever Will Save His Life,” Ensign, Aug. 1982, 5)

Elder Joseph B. Wirthlin of the Quorum of the Twelve Apostles has said:

• If the Savior were among us in mortality today, He would be found ministering to the needy, the suffering, the sick. (“Inspired Church Welfare,” Ensign, May 1999, 78)


Tithing: Principles and Promises• Malachi 3:10

• Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the LORD of hosts, if I will not open you the windows of heaven, and pour you out a blessing that there shall not be room enough to receive it.

• D&C 64: 23• Behold, now it is called today until the coming

of the Son of Man, and verily it is a day of sacrifice, and a day for the tithing of my people; for he that is tithed shall not be burned at his coming.


My Favorite Charities• Following are a few of my favorite charities

• My principles are:

• Support charities which are consistent with my personal goals and values

• Support charities which help people worldwide and make the world a better place

• Support charities which are effective in their use of the “widows mite”. They will be wise with others and my funds.


Fast Offerings: Principles and Promises• President Marion G. Romney stated:

• Caring for the poor is a covenantal obligation. It follows, then, that we look after our poor and distressed not only because it is convenient, or exciting, or socially acceptable; we should do it first and foremost in fulfillment of our covenant with the Lord that we will do so. Marion G. Romney, “Caring for the Poor—A Covenantal Obligation,” Ensign, Nov. 1978, 87

• He also said: • If we will double our fast offerings we shall

increase our prosperity, both spiritually and temporally. This the Lord has promised, this has been the record. Henry D. Taylor, “The Law of the Fast,” Ensign, Nov. 1974, 14


LDS Charities (Humanitarian Services)/Perpetual Education Fund

• 100% of everything you give goes to those in need Missionary Funds

• I believe the Lord helps those who help missionaries Deseret Industries

• What a better way to give of things that are still good

Other charities

• BYU Annual Fund, BYU Scholarships, The United Way, Boy Scouts of America, Habitat for Humanity, etc.


Elder Robert D. Hales of the Twelve stated:• You have received much in your life; go forth and

freely give in the service of our Lord and Savior. Have faith; the Lord knows where you are needed. The need is so great, brothers and sisters, and the laborers are so few. “Couple Missionaries: A Time to Serve,” Ensign, May 2001, 27.

Elder Vaughn J. Featherstone said: • Now my young friends, think of all the

opportunities you will have to serve at inconvenient times. I promise you that most of the service you render to the Lord will come at times not convenient to you. Vaughn J. Featherstone, “True Christlike Service Is Seldom Convenient,”

Tambuli, Aug. 1984, 34.


Elder Vaughn J. Featherstone concluded:• My beloved young friends, determine to serve one

another. Listen to the spirit when your flesh is weak. For truly the Master said, “Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me” (Matt 25:40). The blessings are tenfold when we do those good, kindly acts of Christian service when it is inopportune or not convenient. Vaughn J. Featherstone, “True Christlike Service Is Seldom Convenient,” Tambuli, Aug. 1984, 34.

The Visit to Taz Murray’s Candy Store

Review of Objectives

A. Do you understand what the scriptures say about money and giving?

B. Do you understand why we should give?C. Do you understand how to give now?D. Do you understand the basics of wise

giving?

Documents

Personal Finance: Another Perspective Your Future 1: Learning to Give