Me and My Money

Choosing charities

Posted November 25, 2011
Originally Published February 5, 2009

Q: There are so many good charities to choose from. Every one of them seems important but how can we decide on which ones to donate to without going broke ourselves?

Kelvin P.

A: There are many needy hands outstretched and just so much money to satisfy them all. I recommend you start with the things you love and the things that bother you the most. Second, don’t spread yourself too thinly. It is better, and more satisfying, to limit yourself to a couple of charities than give a few dollars to a large number. This way you get a sense of really being involved and making a difference.

In my case I love animals so I give to a donkey sanctuary and the World Wild Life Fund. I also have kids and can’t bear to think of them as being hungry or abandoned so I also give to Save the Children Fund. Finally, my husband’s father was an ophthalmologist and worked in India for Operation Eyesight so every year we send some money to that organization.


Q: My husband and I are tired of working for other people we want to build something together for ourselves. We are in our early thirties with no children and both work for largish companies. We are negotiating to buy a space and start up a yoga studio in a high end part of town. We don’t take yoga now but we’ve always been interested. We will have to borrow $50,000. Any pointers? Samantha R.


A: I see so many red flags with your plan it’s like staring at a field of poppies – and I’m not even talking about the money issues! The first thing that strikes me is that neither of you have any business running a business until you spend a little more time learning the business.

A family member of mine started a bookstore in 1993 with no sales, business or bookstore experience. He just wound it up after 15 years of eating up his capital. Learning on the job for small business owners can be an expensive exercise.

If you like the idea of running a yoga studio go to work in one first; sweep the floors if you have to. If there’s no work then volunteer; you’d be surprised at the information people are willing to impart in exchange for a helping hand. And by all means you should both take it up in order to learn what the practice of yoga is all about.

The second issue jumping out at me is your working together. Many husbands and wives run businesses together but you should spend some time talking about the additional stress it places on a relationship especially since you will work longer hours, on average, than you do now. There’s also no separation between home and work and that can suck the life out of a marriage if you are not careful.

The third issue is that neither of you are self-employed. Working as a cog in the wheel of a larger company, though no doubt irritating at times, is comparatively safe and secure. Being self employed is a little like a high wire act -- you’re out there by yourself and there’s no one to catch you when you fall.

The fourth issue is that there are yoga studios popping up all over. Have you done some marketing research to ensure the demand exists? This is crucial information.

There are great courses offered through local libraries, chambers of commerce and government small business departments to help you do all the due diligence necessary. Don’t leap until you take a very good look first.

Alison Griffiths is a financial journalist and hosts Dollars and Sense with Alison Griffiths on VIVA and Maxed Out on W Network. She can be reached at alison@memymoney.com.

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