John List: Manage Your Charitable Donations Like an Investment Portfolio

Don’t Let Charitable Donations Go to Waste

If you are about to donate at year-end, new ways of thinking about charity can help your gifts go further.

You should manage your donations much like an investment portfolio, says John List, an economist at the University of Chicago who studies charitable giving.

Many donors have long given from the gut, contributing to whichever charities make them feel best. But, says Prof. List, you should instead decide whether you want to spread your bets or concentrate on one or two holdings. Don’t let emotion alone shape your decisions. And, above all, do your homework before you send any money.

“If you’re an investor who cares about returns, you need to treat this sector exactly the way you would when selecting funds in your 401(k) or analyzing a company’s annual report,” Prof. List says.

Read more at The Wall Street Journal