Philanthropy for Our Modern Times: A Guide to Charitable Giving

With recent and proposed changes to how the United States funds nonprofit and governmental organizations, you may be wondering how you can support causes you care about.

Whether you are looking to support global humanitarian efforts, advance environmental initiatives, or contribute to your local community, charitable giving can be a powerful way to make an impact. By strategically planning your giving, and perhaps, checking in with your financial advisor, you can align your philanthropy with your values while benefiting from potential financial incentives. 

Below, this guide explains the importance of organizations like USAID and offers some options to help you make informed decisions about your charitable giving.

Understanding the Impact of USAID

One of the first changes of the new administration was freezing USAID’s funding. So, what exactly is USAID, and why does it matter?

The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that administers civilian foreign aid and development assistance. Its mission is to promote global stability, economic growth, disaster relief, and humanitarian efforts by supporting developing countries. 

But, even with “international” in its name, the impact of USAID shutting down is still felt domestically.

How USAID Works

USAID assists with grants, contracts, and partnerships with local and international organizations, often coordinating with other governments and NGOs. While it has always operated independently, historically, it has ultimately aligned with U.S. foreign policy goals.

Key focus areas of USAID include:

• Global health: Combating diseases like HIV/AIDS, malaria, and COVID-19.
• Democracy and governance: Promoting human rights, free elections, and the rule of law.
• Economic growth and trade: Encouraging entrepreneurship, innovation, and sustainable agriculture.
• Humanitarian assistance: Providing disaster relief and aid in crisis situations.
• Education: Expanding access to quality education, especially for women and girls.
• Climate and environment: Addressing climate change and promoting sustainable practices.

Implications of Recent Executive Orders

Recent policy changes have significantly impacted USAID, leading to a near-total freeze on foreign aid, substantial staff reductions, and potential agency restructuring. These changes have resulted in (but not limited to in the least):

• Humanitarian impact: The suspension of aid has led to the closure of health clinics, disruption of HIV treatments, and halting of critical programs in countries like Uganda, Bangladesh, and Thailand. As explained by UN News, these actions have raised concerns about “Thousands of individuals — women, young girls, and priority populations at higher risk of sexually transmitted infections — will no longer be able to access critical services, such as condom distribution, HIV testing, antiretroviral treatment, pre-exposure prophylaxis for HIV prevention, screenings for tuberculosis or support to address gender-based violence.”
• Oversight and security risks: AP News reports, “A government watchdog has warned that restructuring USAID has left $8.2 billion in unspent humanitarian aid without proper oversight, increasing the risk of funds being misused or falling into the hands of extremist groups.”
• Global influence: NBC News shared that “Foreign aid has been widely viewed as a cornerstone of soft power, a term popularized in the 1980s by U.S. political scientist Joseph Nye to describe the ability to influence others to deliver desired outcomes.” The same article’s subtitle included: “abruptly halting assistance from the U.S. Agency for International Development ‘opens up a window for China and Russia.’” 

Time will tell about the future of programs like USAID, but there is still good in the world. In the meantime, read on for tips on finding causes and charities to support.

How to Research and Choose Charities to Support

If you’re a high-earning tech employee, you may be looking for ways to lend a hand or maximize the impact of your donations; follow these steps:

1. Define your giving priorities

First, identify causes that matter to you (e.g., education, climate change, disaster relief). The sky is the limit on this one. Then, decide if you want to support local, national, or international organizations.

2. Research charities

There are so many organizations out there that it can feel stressful trying to donate to a charity. It’s highly recommended to do some research first. You can use trusted charity evaluation sites like Charity Navigator, GuideStar, or GiveWell to examine the organization’s mission statement, impact reports, and financial transparency.

3. Understand their services

A big question to ask is, “What does (insert charity or non-profit) actually do?” To find this answer, check what specific programs they run and how they measure success. Look for publicly available case studies, annual reports, and third-party reviews to gauge impact.

4. Assess overhead costs

Review financial reports to see how much of your donation goes to programs vs. administrative costs. Ever heard the phrase “it takes money to make money”? Well, this is true for charities and non-profits, too — some overhead costs are necessary for building a nonprofit’s capacity to execute its mission. A reasonable benchmark is around 75% or more toward programs, but always keep in mind that some overhead is necessary for things like employee salaries, office space, and other things that make the organization’s work possible.

5. Verify legitimacy

Unfortunately, scammers can fake charities, and there are many ways they might try to steal your information and money, including digitally. Watch out for red flags like lack of transparency, aggressive fundraising tactics, or vague impact claims. Additionally, you can use the IRS website to check to see if the charity is registered as a 501(c)(3) nonprofit (if in the U.S.).

6. Make your donation plan

Now, it’s time to make your donation plan. You will likely choose between a one-time donation or recurring giving for sustained impact. For many tech employees in Seattle, your employer may offer employer matching programs to double your contribution. Remember to speak with your financial advisor about your donation strategy — you may be able to donate appreciated stock and stock funds for additional tax efficiency. (Check out our article on donor-advised funds).

Charities to Consider

Below, we’ve compiled a few well-known organizations that map to the same causes that USAID supported before funding was frozen.

Education and Workforce Development:

• DonorsChoose (U.S.) – Funds classroom projects for public school teachers.
• Code.org (Global) – Expands access to computer science education.
• ScholarMatch (U.S.) – Helps low-income students access and afford college.

Climate and Environment:

• Rainforest Trust (Global) – Protects endangered rainforest lands.
• Carbon180 (U.S.) – Advocates for carbon removal policies and solutions.
• The Ocean Cleanup (Global) – Develops technology to remove plastic from oceans.

Disaster Relief and Humanitarian Aid:

• Direct Relief (Global) – Provides medical aid in disaster zones.
• World Central Kitchen (Global) – Feeds people in crisis-affected areas.
• Team Rubicon (U.S.) – Mobilizes veterans for disaster response.

Human Rights and Social Justice:

• Equal Justice Initiative (U.S.) – Fights racial and economic injustice.
• ACLU (U.S.) – Protects civil liberties and rights.
• International Rescue Committee (Global) – Aids refugees and displaced communities.

Animal Welfare:

• Best Friends Animal Society (U.S.) – Runs no-kill shelters and advocacy programs.
• Wildlife Conservation Society (Global) – Protects endangered species and habitats.
• The Humane League (Global) – Works to reduce factory farming cruelty.

Seattle/Washington-based Charities

If you want to go closer to home, supporting local organizations is a great way to make a significant impact in your own community. Here are some notable nonprofits in Seattle:

• Seattle Foundation – Promotes philanthropy and supports local initiatives.
• FareStart – Provides culinary job training for individuals facing poverty.
• Mary’s Place – Supports families on their journey out of homelessness.
• Food Lifeline – Rescues surplus food to fight hunger.
• Rainier Scholars – Provides college pathways for low-income students of color.
• Seattle Children’s Hospital – Advances pediatric research and patient care.
• ACLU of Washington – Defends civil rights and liberties.
• Bureau of Fearless Ideas – Offers free writing and tutoring programs for youth.
• Dress for Success Seattle – Empowers women through professional development.
• KEXP – Champions music and discovery and creating a community for all.

Talk to Your Financial Advisor About Charitable Donations

Whether you choose to support global causes or invest in your local community, your charitable giving can make a meaningful difference! By researching organizations, verifying their impact, and planning your donations strategically (with the guidance of your financial advisor, of course) you can ensure your contributions have the greatest possible effect.

At Northern Lights Advisors, we love helping our clients support the causes they care about. Schedule a consultation today to learn how we can fold charitable contributions into your financial planning.  

Northern Lights Advisors is a fiduciary, fee-only Registered Investment Advisor (RIA) firm based in Seattle, Washington. The information in this article is not intended as tax, accounting, or legal advice. Read the full disclosure here.