Tips for Physicians on How and Where to Make Charitable Donations

Starting with the gratitude that marks the meaning of Thanksgiving, extending into the next month of celebrations of birth and light, and then moving into the new year of resolutions, the first winter months arrive in a flurry of good intentions. Reminders of how good their lives are stir many to action, and giving to charity is one major action. According to the National Center for Charitable Statistics, 50% of nonprofit organizations receive most of their contributions between October and December, and 43% of people who make higher incomes (i.e., households with incomes higher than $200,000 and net worths larger than $1 million) give more during the holidays.

How do people choose where to donate their money? Are there things to consider that may not be readily apparent? What are the best ways to donate? Here are some tips for physicians to consider when thinking about how and where to make charitable contributions, as well as ideas for expanding on ways to give beyond the pocketbook.

Giving to Charity

Katie Brewer, CFP, a financial advisor in Dallas who specializes in advising physicians and runs the website “Your Richest Life” (yourrichestlifeplanning.com), which helps physicians and other professionals with financial advice and planning, recommends first that physicians come up with a strategy on how they want to give. “Make sure you come up with a strategy to donate, because a lot of the time, physicians say they want to donate something back but then don’t take the time to figure out what to do,” she said.

One strategy she proposes is for physicians to compile a list of potential places they wish to donate to as they think of them. “My biggest [piece of advice] is that when something comes to mind on where you want to give to charity, either on a one-time or ongoing basis, write it down and put it in one place,” she said. “That way, you have a place to come back to when you are ready to make a contribution.”

Brewer also offers a number of online resources that address specific issues related to charitable giving (See “Researching Charities,” below). One key issue she emphasized is conducting due diligence on the charities of interest and making sure to give to charities on which you have at least some background knowledge. “Do your homework before you donate money,” she said. “Be choosy with charities, too. They’re not all equal.”

James M. Dahle, MD, editor and founder of The White Coat Investor (whitecoatinvestor.com), a physician-specific personal finance and investing website, also emphasized the importance of using these online sites to gather information on a charity of interest so that you can make an informed decision when donating. “I think it is a good idea to look up organizations,” he said, adding that you can also donate to charities that you know well, such as your own church, charities you donate your time to, local food banks, homeless clinics, and shelters.

Brewer also said that many of her clients donate to their churches, which they consider a non-negotiable charity. “People may have their non-negotiable charities that they always give to,” she said. “When they have extra dollars, they may want to pick another two or three organizations to give to, and that is when I encourage people to do due diligence.”

For Dr. Dahle, who is a physician rather than a financial advisor, attorney, or accountant, contributing money is not just about giving to others, but also improving oneself. “One of the best parts about charitable giving is what it does to you and your psyche,” he said. “When you give money away, it sends subtle messages to your unconscious like, ‘We have enough,’ ‘Money is for helping others,’ and ‘You don’t need to die the richest doc in the graveyard.’”

When you give money away, it sends subtle messages to your unconscious like, ‘We have enough,’ ‘Money is for helping others,’ and ‘You don’t need to die the richest doc in the graveyard.’ —James M. Dahle, MD

Other Ways to Give

Donating money is but one way to give; donating time and medical expertise are other ways. A 2014 survey that assessed the prevalence of charitable giving by physicians in the U.S., as well as the types of preferred charitable giving, showed a range of non-monetary ways physicians contribute their time and expertise (J Compassionate Health Care. 2015;2:1-8). According to lead author of the study Paul H. Caldron, DO, PhD, MBA, clinical assistant professor at the University of Arizona College of Medicine in Phoenix, the researchers found that the main types of giving included teaching to students and to the public, offering pro bono medical services within the U.S. and abroad, and waiving fees for uninsured or underinsured patients in their practices. “The average amount of waived fees in 2013 was about $22,000, and collectively about $7.3 billion, or about 1.24% of total healthcare spending on physician care,” he said.

In terms of giving by specialties, the survey found that pediatric (nonsurgical) physicians and surgical and anesthesiology specialists were more apt to donate their time to short-term medical missions abroad. Adult (nonsurgical) physicians were more likely to provide services in free and sliding scale clinics.

“According to the World Giving Index, the people of the U.S. are repeatedly shown to be the most generous among the world’s nations, and U.S. physicians do their part … through unpaid teaching, [providing] free services domestically and abroad, and waiving fees for those in their practices who cannot pay,” he said.

---

Mary Beth Nierengarten is a freelance medical writer based in Minnesota.