Lottery Winner's Dilemma

At some point between October and December, there was a winning jackpot lottery ticket sold in Aberdeen’s Woodside.  (Perhaps dazzling news for those of you outside of the Granite City, but this made both local papers today).

 

By now, if you’re the winner you’ve probably paid off the mortgage or bought a new place, perhaps splashed out on a nice car, taken a holiday and probably had the best Christmas of your live.  I imagine you’ve probably spoken to an ‘expert’, and invested much of the money.

 

As we progress through February though, the euphoria might be wearing off.

 

Unromantically for Valentine’s Day, many couples who win go their separate ways afterwards, and far from bringing happiness, a big win can actually bring the sense that life has lost it purpose for those that give up work.

 

Is it all doom and gloom?

 

As well as potential financial freedom, there’s the opportunity to create a massively positive change to the lives of other people. 

 

You might think that splashing out on that new Aston Martin would make you happier than giving away the £125,000, but research suggests you’d be wrong.

 

I’ve seen plenty of research that says that giving to charity can make you happier.  Similarly research proves that happier people are more likely to give to charity.

 

So what advice would I offer to a lottery winner looking to give away £100,000?

 

First:  Narrow down the area. 

 

What ‘problem’ do you want to solve?  What do you want to give towards, and do you know which charities are really working in that area?

 

Secondly, think Local, national or global?  A donation like this might have a huge effect for a local charity, but a global one might be solving a huge issue.  Like eradicating polio or cancer.  A national one might have expertise they could build on with your support.

 

Then, think about the effect of your donation.

 

Do you know what the charity could do with your donation?  How would they spend it, and what problems could it solve?  If they’re a smaller charity, could they cope with a donation of that size, and if they suddenly increased the work they do this year, could they maintain it next?

 

Meet with someone from the charity.  Tell them you’re considering making a donation, but want to know what it could do.  Ask lots of questions.

 

Ignore the inputs – ignore things like ‘admin costs’, and look for the outcomes – what will be achieved from the donation? 

 

Finally, if you just don’t know where to start, then remember that there are people who can help you to make sure that the experience is as rewarding as it can be.

 

Speak to New Philanthropy Capital, or try ACVO, or someone like me.

 

Donating to a charity doesn’t just change the lives of other people, it can change your life too.

Posted via email from mikemuses's posterous