The COVID-19 pandemic has left us all wondering what the future holds, but the crisis is also calling attention to many of today’s pressing social problems, such as hunger and homelessness. And of course, other issues of historic importance—such as climate change—remain. If you’ve been wondering how you can pitch in and help during these unprecedented times, here are some impactful ways to contribute.
Make a Charitable Contribution
Maybe you have a high yield savings account and would like to use some of that cash to make a tax-deductible contribution to a not-for-profit organization that’s making a difference during the coronavirus pandemic. But which one?
● Help with hunger. Your community probably has a food bank, and chances are it’s been stretched thin by the crisis. Demand at these pantries has increased up to eight-fold in parts of the United States; about one in three people seeking groceries are first-timers. You can contribute directly or give to the Coronavirus Response Fund established by Feeding America, which works with food manufacturers, grocery stores, restaurants and farmers to channel surplus food to people in need. A donation of $25 buys $500 worth of groceries.
● Housing assistance. Many newly unemployed people are struggling to pay the rent or mortgage. To help others stay in their homes, consider giving to Family Promise, a nationwide organization for children and families who are at risk for or are already experiencing homelessness.
● General aid. The Center for Disaster Philanthropy has created a COVID-19 Response Fund that’s helping to fill a wide variety of needs during the pandemic. The organization’s activities include providing personal protective equipment to healthcare and other frontline workers, as well as offering emergency grants to small businesses.
How can you be sure the not-for-profit you choose spends your money wisely? Consult Charity Navigator, which evaluates and rates charities based on the percentage of donated dollars they use for aid versus what they spend on administrative and fundraising costs. (Feeding America, Family Promise and the Center for Disaster Philanthropy have all earned the highest rating.) It has compiled a list of highly rated nonprofits that provide a wide variety of aid to groups and communities affected by the coronavirus pandemic.
Invest in Our Collective Future
How can you make a difference while simultaneously building your financial portfolio? One way is by investing in companies whose products and corporate behaviors match values that matter to you, such as protecting the environment or promoting social justice. Values-based investing goes by several other names, including responsible investing and sustainable investing. It’s an increasingly popular way to invest: From 2016 to 2018, sustainable investments in this country increased 38%, to $12 trillion, according to The Forum for Sustainable and Responsible Investment.
In a sense, what constitutes sustainable investing is in the eye of the investor. If you’re concerned about climate change, you may simply decide to buy stock in a company that produces solar panels. Other investors interested in protecting the environment back businesses that have taken steps to reduce their impact on the planet. For instance, one large international retailer put solar panels on its buildings, built hundreds of wind turbines to produce energy for its buildings and eliminated single-use plastics.
Other forms of sustainable investing include buying stock in companies with corporate practices that agree with your values, such as encouraging workplace diversity and fair treatment of employees. Many investment firms today offer mutual funds made up only of companies that meet specific sustainability criteria.
And don’t believe the myth that investing for a better world means accepting lower returns on your money. One recent report found that large cap mutual funds (which include companies valued at $10 billion or more) with an “above average” or “high” sustainability rating outperformed comparable funds with lower sustainability ratings. In fact, a significant portion of them delivered better returns than the market as a whole.
Buy Quality
Sometimes saving for the future means spending a bit more today. That’s especially true with clothes: Well-made, classic fashions often carry high price tags, but they also usually last longer. Meanwhile, so-called fast fashion is often inexpensive, cheaply manufactured clothing that’s likely to go out of style in a hurry (if it doesn’t fall apart first). You save a few bucks in the short term on fast fashion, but at a significant cost. Much of the merchandise in stores that sell these bargain-priced goods was produced by low-paid workers who often toil in grueling conditions. Plus, textile manufacturing is a major producer of greenhouse gas emissions. And each year, tons of discarded garments end up in landfills or are incinerated, creating pollution.
As a response to fast fashion, there’s growing interest in “slow” fashion—clothes made to last, created by companies that engage in practices such as paying fair wages and using locally sourced and recycled materials. You can find brands that fit the bill at sites like Remake and Good On You.
Spend Your Time
While your financial generosity can make an impact, your time and wisdom are valuable, too. More than 77 million Americans volunteer each year, perhaps spending a Saturday helping the community clean up a park or beach, or checking on an elderly or disabled neighbor. You can even pitch in without leaving your home by virtual volunteering: Organizations like MicroMentor allow experienced professionals to give advice to business newcomers through an online platform.
Timothy Gower is an award-winning journalist whose work has appeared in more than two dozen major magazines and newspapers, including Prevention, Reader’s Digest, Esquire, Men’s Health, and The New York Times.