A Simple Way to Stretch Your Charitable Dollars Further
Life + Money

A Simple Way to Stretch Your Charitable Dollars Further

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As the charitable giving season approaches, a new survey finds that the majority of people who give to charity may not be doing so efficiently.

The survey, from RBC Wealth Management–U.S. and City National Bank, finds that the majority of Americans (53 percent) split their contributions between three or more charities, including 10 percent who give to between six and 10 charities.

However, given that all organizations incur some overhead costs to process contributions, you’ll lose less money to such fees by contributing to fewer charities.

Related: It’s the Season for Online Charity Scams

“It’s common to believe that dividing up our donations to help more charitable causes, we have the greatest impact,” Malia Haskins, Wealth Strategies Consultant at RBC Wealth Management, said in a statement. “But there is a strong argument that, if you’re interested in doing the most good, you should concentrate your giving on one, maybe two organizations.”

The study found that more than eight in 10 Americans agree that charitable giving is important, with women more likely than men to feel that way, according to the survey. However, men who did make charitable contributions gave more on average ($1,143) than women ($722).

Americans in the Midwest were the most generous, with average annual contribution of $1,111. People in the Northeast were the stingiest, giving an average of just $743.

Philanthropies that help children were the most popular, according to the survey, accounting for nearly a third of charitable contributions.

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