We imagine that winning the lottery is a pretty great feeling, right?
Of course, it is! But, did you know that there are winners who feel guilty once they collect their jackpot? That’s because it can be tough to justify not actually earning that money.
That’s exactly why a high percentage of lottery winners donate a portion of their prize to charitable causes. Just like the anonymous New Hampshire winner, who announced she’d give a portion of her $559.7-million Powerball win to charities that tackle child hunger.
Other than the satisfaction you’ll receive from helping an organization, your donations are also exempt from tax.
As a winner, the chances are high that you’ll be contacted by strangers wanting a donation or some sort of financial assistance. Handle these requests with care, especially verbal requests.
If organizations do approach you, ask for a written request that provides details of their supported causes and activities. Don’t forget to ask for their registration number, too.
Alternatively, you could decide where your winnings go.
Here are a few tips for choosing the right charity to share your good fortune with.
Find a charity close to your heart and one that matches your values and history. It will enable you to be more engaged in the organization and allow you to contribute more effectively.
Once you’ve narrowed down your list of organizations, see how much of their funds each cause uses for its cause instead of for overheads, fundraising, and marketing. Some charities give around 70 percent of their funds to their cause.
We know that there are so many problems and so many charities out there today; it can get overwhelming. In some instances, the larger the non-profit organization, the less you see your money working.
So, why not consider donating to a local charity tackling a local problem? You’ll be better able to get involved by donating money and you could even donate your time. Not only that, you’ll likely get a more comprehensive insight into how your money has positively affected the charity.
You don’t need to be business-minded to think about your Return on Investment. Look at the impact of each dollar and how you can stretch it to maximize your return. For example, microloans are repaid and lent out over and over again.
A personal mission statement will help to guide your donations. Develop a statement and identify charities that align with your new mission. Find the charities that kindle your passion and then donate your time and a portion of your winnings.
Speaking of passion, find something that complements your passions. It should be a charity that you want to be involved with for a long time. It will feel great to give back to the community and be part of something larger than yourself.
Research shows us that the higher the jackpot windfall, the more likely winners are to go broke. But, things were different for Allen and Violet Large who hail from Nova Scotia.
Back in 2010, the elderly couple won an $11.2-million jackpot and promptly donated 98 percent of their new wealth to the Red Cross, fire departments, churches and hospitals where Mrs. Large was treated for cancer. According to Violet, “What you never had, you never miss.”
Unfortunately, Violet passed away a year later. Allen, though, continues to buy weekly lottery tickets in her memory and has said that if he wins, he will donate it all again.
There are so many causes out there that need support. Whether your passion is pet rescue, children’s health or local community services, you’re sure to find causes that ignite your passion and with which you can build a long-lasting personal connection.
All you have to do is play the Powerball lottery and hit the big time.