This holiday season is going to be pretty lean for many families. In times of economic downturns, charities that provide services to families are squeezed from both sides. Demand is up and donations are down. This season, although your holiday budget may be lean as well, you may find that you can still help others and make your friends and family feel loved and appreciated. The key is that you need to look for ways to make the gift do double duty. It needs to be something that makes your loved one feel loved and appreciated and something that benefits the rest of society as well. It's not an easy task to accomplish two goals with one gift, but nobody ever said that being frugal was going to be easy. It is however, ultimately rewarding and the self-esteem boost you get for knowing you've accomplished this difficult feat is an added bonus.
One big problem with giving someone a donation to a charity in their name rather than an actual gift is that it takes a lot of the fun out of the process. Opening a card that says "a donation has been made in your name to XXX" is a bit of a letdown for many people. Particularly is XXX is a cause or group that they either know nothing about or aren't particularly attached to. The key is to find a way to make the recipient really feel like they got something out of this donation. For example, rather than picking a cause that is near and dear to your heart, pick one that is near and dear to theirs. Here are some ideas that may help you get started:
Make a new tradition: If your family has a tradition of buying big blow out presents for each other each year that you find more stressful than rewarding, suggest a new tradition. One that True North mentioned recently involved the entire extended family helping to pick out which charity the grandparents would make a substantial donation to each year. All of the family member would research and lobby for their charity of choice. It was a great way of bringing everyone together. Meteor Blades' family has a nice modification to the standard "draw names for gifts" practice. They add a caveat that however much you spend on the gift, you match it with a donation to a charity.
Involve your children: If you have children of your own, or children that you shop for, it's never too early to start teaching them the importance of helping others. There are plenty of places that accept toys for children each year. Take your child shopping for a toy to give to a needy child or you could help them pick out some of their used toys that are still in good shape to donate to a local shelter.
Give a virtual animal: What child (or adult, for that matter) wouldn't want a cute fuzzy animal for Christmas? One way to give an animal without giving all years of work and responsibility that comes with a real pet is to give to an animal related charity. Zoos, animal shelters, and wildlife preservation organizations all will be happy to send you a full color picture of the cute critter you have saved with your donation. Pick an animal or organization that your recipient really cares about, and your charity gift will touch the hardest of hearts. Heifer.org is another great group that is trying to end world hunger one goat at a time. They have a wide variety of animals you can donate so you are likely to find something that meets your budget and matches your recipient's interests.
Local libraries or schools: For your friends and family who are library fans or who have children, a donation to any of these may feel very special.
Local museums and sites: Does your loved one have a local attraction they particularly enjoy visiting? You could donate something there in their name. You don't have to fund a new wing of the building, but you may be able to buy a brick in the new walkway. Alternatively, you could buy them an annual membership pass which is both a tangible gift they can use and a donation the institution will really find handy.
Microfinance lending: Kiva.org is a group that matches third world entrepeneurs with small lenders over the internet. You pick who you want your loan to go to and, when it is repaid, you get the cash back. By giving a gift certificate to Kiva, you are in essence giving a delayed gift of cash and an opportunity for someone you love to make a connection and a difference with someone half a world away.
Charity by group: A few years ago, my company did away with the standard holiday gift exchange and instead, we Adopt-A-Family in need. Everyone can participate at whatever level they feel comfortable and we know that all the gifts are going to a needy family.
[Update] Non-profit shopping: One more I forgot to mention is to shop in stores where the profits go to benefit a cause you care for. These could include your church craft fair or shops such as Ten Thousand Villages that tries to help artisans from around the world.
For more great ideas, check out browneyes' recent diary Action diary: Charitable ideas needed and AnnieJo's diary Frugal Fridays: Holiday Gifts, Lean Times Edition.