You have to admit, there are thousands of ways to give your money to those in need, but a large percentage of those ways are just not effective.

What does it means to not give effectively?

In my opinion, it is not always about the result that the giving brings, but rather a matter of the heart of both the giver and the receiver. When you give joyfully, you will be truly blessed. When a person receives something with a grateful heart, they will be truly blessed as well. Ok, that's my little soap box about the real essence of giving, but now lets go back to the results of giving.

I didn't say that the results of your giving are not important at all, I just said that that they are not AS important. A joyful giver can make terrible donations if not careful. For instance, if you were to support a missionary headed to Africa (using Africa as an example because it's the "popular" place to feel like you are making a difference) and that missionary were going on a short-term trip to help build a new housing development, you would probably feel really good about it. When he returns you would hear fun stories about the ribbon cutting ceremony and all of the smiling faces with new homes for their families. It would be a memorable moment for everyone involved.

Five years later you would be sad to learn that the housing development has now become a slum area because the locals did not take care of it. It's not that they were lazy or did not know HOW to take care of it. It's that they didn't feel any ownership. America built it for them, therefore, America owned it.

This is not just some scenario I came up with out of thin air, I've heard numerous stories like this one.

So how can you know whether or not your donation or gift is going to produce good results?

Ask questions.

• Are there going to be locals involved? Will they have ownership of the project?
• Is the mission working through the local Church or ministry so that there is long-term support?
• How will this money be used?
• What is the total amount needed?
• What kind of follow up will there be?
• Are you just giving free handouts?
  

I have written about supporting a child with Compassion International or World Vision because I feel that this is one of the most effective ways for people to give. When you support a child, a long-term relationship and commitment is established. Also, these ministries do a good job of working through the local churches where the children live, so that there will always be supportive people around them.

There is, however, another favorite giving opportunity of mine. It's called micro-financing.

What is micro-financing and why do I like it so much?

It's providing small loans to entrepreneurs in third world countries to help them get started with small businesses in order to provide for their families. The loans are usually paid back - not necessarily to the lender or the donor, but back to the institution which can then provide another loan for another family.

These are extremely effective because:

1. They are not just handouts. The entrepreneurs have to work to pay them back, which establishes accountability and ownership so that businesses actually last and thrive.
2. It establishes relationships all over the world. Relationships are more sustaining than "get in, get out" types of charity.

The three best agencies that offer micro-financing opportunities are:

• World Vision Micro.org
• Kiva.org
• 1010 Project.org.

Check out this video from world vision to learn a little bit more about how their micro-finance opportunities work and how you can get involved. Then, check out the three websites and decide which one you want to get started with. They all work slightly different.