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Subscribe to RSSThe winners of the Mega Millions lottery could use hundreds of millions of dollars to buy an island, a ranch or even a small company or sports team.
Or the three winning ticketholders who have a claim on the historic $656 million jackpot could give all, or a good chunk, of it away.
A couple of hundred million dollars may not be enough to cure cancer or enact world peace, but experts say there are ways to use newfound wealth effectively.
(The exact amount each lottery winner would receive would depend on whether they take a lump sum payout or agree to yearly installment payments, and there are taxes to consider as well.)
Rob Mitchell, CEO of Atlas of Giving, which tracks data on philanthropy, recommends taking a no-nonsense approach: Figure out what very specific problem you want to address, and how to best do that.
“The people who have achieved the most satisfaction ... are those that have taken the most business-(like) approach,” he said.
Mitchell said that's easier if you decide to do something specific, like construct a building or a renovate a stadium. It's tougher if you have a more general idea, like helping homeless people.
Still, there are areas where you can really see where your money makes a difference.
Ross Fraser, spokesman for Feeding America, says that for $1, his agency can provide eight meals to the nation’s approximately 49 million people at risk of going hungry. That means $200 million would buy 1.6 billion meals.
One way to make a major mark is to focus on the philanthropies that aren’t as big, or well-known.
Very large sums of money are often donated to major philanthropic organizations or big arts and academic institutions, noted Naomi Levine, executive director of the George H. Heyman, Jr. Center for Philanthropy and Fundraising at New York University.
But Levine said she thinks an individual could have a much bigger impact on local organizations, and particularly those that serve vulnerable populations such as the hungry, homeless, elderly or disabled.
“I would hope that the person who has that kind of money to give away would give it to the small social service agencies that need it so badly today,” Levine said.
Still, you must be somewhat careful that a small organization will spend your money wisely. That means reading publicly available tax documents to make sure the organization is using its money effectively, and grilling key staff members to make sure they know what they’re doing.
You might also want to take a look at how the big givers have done it. The Bill and Melinda Gates Foundation, which is also funded by billionaire Warren Buffett, has devoted more than $25 billion to fighting malaria and other issues.
In total, Americans gave more than $346 billion to charitable organizations in 2011, a 7.5 percent increase over the past year, according to Atlas of Giving.
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"How to give your lottery winnings away"-VOTE Democratic.
That may not be the most idiotic comment I have seen from a wing nut, but it's a tad ahead of whichever is in second place. Idiot.
bobbski I disagree.......remember the re-distribution of wealth?
Naw, bobbski, Matt's comment is spot on. The winners haven't even gotten their money yet, and the lefty media are already offering ways to to get at it for their "causes".
I would give zero to charity. People don't want charity, they want jobs. I would use the money to start and fund businesses that create jobs!!!!
How about $68,000 to cover my student loans?
I put that id give approx 50% or more. IF I ever did win the lottery, I already know what I would do. I would get my family out of debt. I would help a few friends. And Id invest some- not much. Id bury some {i know a guy that does this.. has worked for him lol so why not?} and Id find a huge farmhouse- 12+ rooms that has at least one decent sized and structurely sound barn with as much land as I can get. Id turn that into a place that no animal would be turned away. It would also serve to help other people in need as well. Thats what Id love to do.
Illinois already has such a Plan it's called making a Quinntribution to the State
Donating to bona fide charitable organizations would lower the taxable amount. It's definitely a good strategy all the way around. All very wealthy individuals have charitable giving as part of their tax planning.
Unless donations actually mean they take home more cash in the end, how about they take the whole lump sum, invest it and then donate from the interest that it will continue generating?
Unfortunately there is a very good chance they will be broke within 5 years, as hard as that may be to believe.
Tired of all these charities, half of which are scams and many other have a overhead/administrative cost so great little makes it to the actual charity cause. I don't give to any of them any more, especially since the government taxes me to death and gives it away for me.
The mice voting on what the cat should do next.
That's good
Must be a slow day to report on topics such as this.
You want to help poor people? Use the money to close the lottery down . . .
Hell no. The lottery is the only way we get the 50% who pay no income tax to contribute something to the system!
We always have sales taxes on big-screen TVs and iPhones . . .
Mine mine mine mine mine. Not a dime.
I have always found it interesting how those who suggest to others how to spend their money and lecture on donating to charities, do no follow their own advice.
So Allison Linn, how much of your income do you give to helping others?
I am sure these lottery winners will reach out to others, however it is their winnings and their choice on how they choose to spend their money.
What a great article. The winners of the lottery havent even gotten their money yet and liberals are already giving suggestions as to what they should do with THEIR money. Unbelievable.
At least if a lottery winner gave away most of their winnings to benefit society that would be far more than the greedy rich do with the millions they get for nothing.
Such hatred towards the rich and yet, why do you think the lottery was so large? Becasue everyone wants to be rich. What I am really saying is libs dont hate the rich like they are saying but they are jealous of them and want to be one of them. No other explanation as to why 1.5B tickets were sold in three days.
You of course ignore the millions they give to charities and charitable causes. You can't force people to open their eyes once they have closed them with dogma.
Most rich people invest their money which creates jobs. Of course to socialist liberals that makes no sense at all, to them only government can create jobs.
Sure- being rich is better than being poor is it not? Being truly rich is sharing with others so the people you refer to are not the same as the greedy rich who have been legally stealing form the public for the past 5 years
truesaid - I'd be willing to bet that your "greedy rich" give more to charities than you make in a year but no matter what they give, people like you will never think it's enough. They're evil because they figured out how to make money and you haven't, it's as simple as that.
Of course the rich give away money- but for political influence as well as satisfying other hidden agendas. Money is the root of all evil.
If you are going to quote scripture at least get it right. The quote is, "The love of money is the root of all evil." Different meaning entirely.
Uh, wasn't trying to make a quote- do you see quote marks around anything I wrote? They look like these: " " That's what a quote looks like. Google it. But I made my point and, as usual, it is "truesaid".
What a bunch of nonsense! Give it all away? Why on Earth are you playing the lottery at all if you were going to give it all away in the first place? Why weren't you giving all that money you spent on lottery tickets to your "cause" from the start? Sure I would give some money to charities I like but all of it? Get real! I'm taking care of my entire extended family first, then friends next, and of course...myself.
Money CAN buy happiness or at least the opportunity to BE happy!
Giving all of it away would do no good from a tax perspective. You would still owe tax on a lot of it, since charitable deductions can only be 50% of adjusted gross income.
The benefit of making donations to bona fide charities is that you would be able to support those organizations that you believe in, as opposed to where your tax dollars go.
You can also give $13,000 per year to individuals without any reporting. This would be a nice bonus for everyone you know. And you might want to give more to some people, like certain relatives, but anything over $13,000 would need to be reported for gift tax purposes (which may or may not mean paying gift tax--it depends).
Jay - If I got 1/3 of the $650 plus million I would be willing to pay the gift tax because there is no way I'm going to spend all this money myself before I die....though I may die giving it one heck of a try. :-)
KCUF YOU. Buy your own gnikcuf lottery ticket you cheap bassturds. I had to buy my own tickets, you will get no handout from me you freeloaders. Why should you be special.
To win that much money in the lottery and not spend some of it helping others would not be right. I would stay local and ensure that any money I spent would go directly to helping others. There are many local organizations that utilize volunteers and do not spend a large percentage of the monies donated on overhead. It would require some effort on your part but hey....with all that money you would be retired and wanting something to do anyway!
Here is what I would do; I would setup a fund of say $20 Million and help middle-income americans and Legal Residents who make more than $39k but less than $100K who are having financial trouble with Rent/Mortgages, Utilities, or Car payment..etc. Becuase the Federal Government already does enough to help Low-Income families and the very poor who make less than $39K. The Federal Government already helps the very rich through tax cuts, tax breaks and tax loop holes to make them richer, but no one helps or cares about the middle-income who struggle just as much if not more than low-income families and the very poor.
I will start an orphanage so that I can give a chance in life for many children who do not have parents. Of-course, I will run the orphanage myself. Because, I think, I can do a better job than most of the non-profit organizations. because they spend most of the money for their salaries and management expenses.
I would set up a foundation, get a good solid business based board, set the regulations on how the money is spent, and have a lot of power to veto decisions if necessary.
I would mainly want to help those who are trying to help themselves with clothing, dental work, transportation (public or getting them a reliable vehicle), and other things that will help them get and keep a decent job, possibly even some training.
I would also start several businesses, maybe even bring in a few new franchises (Popeye's Chicken, anyone?), and put people to work. Yes, there would be some minimum wage jobs, but there would also be some middle management level ones.
I would also fund college educations for all my nieces, nephews, grand-nieces, grand-nephews, and a few kids of friends.
I would take a long, well-deserved vacation. And I would set my two sons up in businesses of their own.
10% would go to established charities, very carefully selected charities.
I would make a public statement after winning at least 300 mil that if I don't know you, don't call me, if I do know you, stand by to stand by I will be hooking you up. I would develop a youth baseball organization (8-16) with a complete field of dreams facility, to include training, coaches and mentoring, make it not for profit, have whatever profits the facility makes, because they do, go back into funding youth's who can't afford to play the ability to play, it would be there forever and benefit the persons I believe need the most benefits, our youth.
My family, my real, true friends, not somebody who went to my school once in third grade. Alzheimer's research. Veterans. Animal shelters, especially ones that care for old dogs. Stuff to help our young people like sports programs, tutoring for slower students.
Any outfit calling to solicit money would be right off the list, period! Not one dime to United Way, Planned Parenthood, nothing for the Koman pink ribbon scam. Nothing for any organization that doesn't give at least 80% of every dollar to their cause. I'm a pretty generous guy with what I have (not much) and I believe most Americans are, too, but I have no time for the ones who feel entitled to latch onto any teat that isn't being guarded. Screw them!