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The price of goodness: rethinking spening vs giving

 

The Price of Goodness: Rethinking Spending vs. Giving

 

As digital nomads, many of us pride ourselves on being conscious global citizens. We value experiences over possessions, connection over status. But here’s something worth examining: why do we spend hundreds — even thousands — on gadgets, coffee, or clothing without question, but hesitate when it comes to giving to a good cause?

We trust big-name brands and products instantly, often without knowing where or how they were made. Yet we treat charities — especially smaller or unfamiliar ones — with skepticism. It’s a contradiction worth unpacking.

Trusting Products, Doubting Purpose

Let’s start with our spending habits. Most of us buy clothing or electronics with little thought about the supply chain. Yet behind many of these purchases are unsettling truths. An EU-backed campaign revealed that 93% of top fashion brands fail to pay a living wage to garment workers [1]. Meanwhile, our smartphones often rely on cobalt mined in dangerous conditions — including by over 35,000 children in the Democratic Republic of Congo [2].

These facts are well-documented, yet rarely do they affect our choices. We keep buying because the products are desirable, the marketing is strong, and the consequences feel distant.

But when it comes to charitable giving, we often react differently. We ask: Is this organization legitimate? How much of my donation actually helps? Can I really trust them?

According to recent data, only 57% of Americans trust nonprofits [3]. Among younger generations like Gen Z, trust drops even lower — to just 46%. That’s troubling, especially considering this same demographic often advocates for social justice and global equality.

It seems we’re far more likely to give the benefit of the doubt to a trendy brand with questionable practices than to a nonprofit that might be doing life-changing work. Why?

Where Does the Skepticism Come From?

There are reasons. Some of us have heard of scandals or stories of misused donations. Others have internalized the belief that charities should run on the bare minimum — any money spent on marketing, salaries, or office space feels like a misuse of funds. This idea, known as the “overhead myth,” has long haunted the nonprofit world [4].

We often expect those who work in charities to be self-sacrificing — to do it “for the love” rather than for fair pay. But this mindset does more harm than good. Expecting nonprofit professionals to live in poverty is not only unfair — it’s also ineffective. Talented people need decent salaries, especially when their work involves saving lives, managing complex logistics, or operating in high-stress environments.

We wouldn’t expect a startup CEO or a skilled software developer to work for minimum wage — so why do we expect it from nonprofit leaders or field workers?

There’s also a psychological element. With a purchase, we get immediate results — a phone, a meal, a piece of clothing. But when donating, the outcome feels abstract. We want to know: What exactly did my money do? That’s a good impulse — but it can lead to inaction if we don’t have clear answers.

When Giving Truly Works

Despite our doubts, the evidence is clear: nonprofits — large and small — have helped change the world for the better.

  • In 1988, polio was crippling hundreds of thousands of children each year. Thanks to global health organizations and donor-funded campaigns, polio cases have now dropped by 99% worldwide [6].

  • Since 1990, the global under-five child mortality rate has fallen by 61% [7] — meaning millions of children are surviving who would have died just a generation ago.

  • Over 2 billion people have gained access to clean water due to efforts led by nonprofits and their partners [8].

These are massive, measurable shifts. They didn’t happen overnight. They happened through sustained effort — and funding.
And while these global statistics are compelling, there’s another layer to the story: the local heroes.

The Power of Local-Led Charities

It’s not just large international NGOs making an impact. Around the world, small, community-led charities are solving problems in ways outsiders often can’t. These are organizations founded and run by people who live in the communities they serve. They understand the culture, the challenges, and the resources in a way no external group can replicate.

In places like Medellín, we see it all the time: local leaders running after-school programs to keep youth off the streets, organizing food relief drives, creating safe spaces for LGBTQ+ youth, or building networks of care for single mothers. These charities might not have fancy websites or big marketing budgets. But they are trusted, effective, and embedded in the community.

Supporting these organizations matters. And your donation — even a modest one — can go a long way. Small charities are often underfunded but incredibly efficient. A $50 donation might mean a week’s worth of groceries for a struggling family or school supplies for an entire classroom.

Hot Topics Worth Thinking About

The nonprofit sector is not perfect — but it’s evolving. Here are three critical conversations happening right now:

1. Should Charity Workers Earn Fair Salaries?

The answer is yes — but with transparency. People doing hard, emotional, often dangerous work deserve a decent wage. And the public deserves honesty about where their money goes. Several U.S. states now require nonprofits to publish salary ranges [9], and more are following.

2. How Do We Know Our Donations Work?

Donors want to see impact — not just good intentions. More organizations are sharing stories, photos, and data about what donations make possible. For smaller, local charities, this might come in the form of social media updates or personal testimonials — not big spreadsheets, but still meaningful. Surveys show that 75% of donors seek proof of impact before giving [5]. That trend is pushing the entire sector to become more transparent and accountable.

3. What Is Ethical Fundraising?

Nobody likes being guilt-tripped into giving. Ethical fundraising means respecting donors and the dignity of those served. That means no manipulative tactics, and being honest about needs and limitations. It also includes turning down money from questionable sources — like fossil fuel companies trying to “greenwash” their image. Charities are increasingly drawing ethical lines in the sand, and donors are right to care.

Aggressive fundraising also contributes to donor fatigue: less than 25% of first-time donors give again [10]. Sustainable giving relationships are built on trust, not pressure.

Moving from Thought to Action

So, what can you do?

  1. Reflect on your spending. Next time you buy something expensive, ask yourself if you can also give a little back.

  2. Start small. You don’t need to donate hundreds of dollars. Even a small recurring donation helps charities plan and grow.

  3. Ask questions, but don’t let doubt become an excuse. Most organizations — especially local ones — are more than happy to tell you how they use donations.

  4. Balance your skepticism with generosity. It’s okay to ask for transparency. But don’t assume every charity is untrustworthy because of a few bad actors.

  5. Think locally. If you live abroad, support the communities that host you. In Medellín, for example, there are dozens of impactful local groups doing amazing work.

Final Thoughts

Charity isn’t about guilt. It’s about values. It’s about deciding what kind of world you want to support — and realizing that your choices, both as a consumer and a donor, matter.

As nomads, we move freely through a world that not everyone gets equal access to. That privilege comes with responsibility. Supporting ethical causes — especially local ones — is one way to give back, to say thank you, and to leave a place better than we found it.

So the next time you feel a twinge of doubt when asked to donate, pause. Consider what you’d expect from a company you’re buying from. Then consider what the charity is offering — hope, opportunity, impact — and what your contribution could mean.

Be critical. Be generous. Be part of something bigger.

Written by Sabine Bouwmeester, former director of a foundation, COO at DNfG, located in Medellín.
She believes that generosity, critical thinking, and good coffee can change the world — in that order.

 

Sources

  1. 93% of major fashion brands do not ensure a living wage | Source: Clean Clothes Campaign (2023) | https://cleanclothes.org/news/2023/fashion-forward-but-left-behind

  2. Child labor in Congolese cobalt mines (used in smartphones and electronics) | Source: Amnesty International & Afrewatch (2016) | https://www.amnesty.org/en/latest/news/2016/01/child-labour-behind-smart-phone-and-electric-car-batteries/

  3. Only 57% of Americans trust nonprofits – Gen Z trust drops to 46% | Source: Independent Sector – Trust in Civil Society Report (2023) | https://independentsector.org/resource/trust-in-civil-society-2023/

  4. The “overhead myth” – flawed belief that low overhead equals better charity | Source: Dan Pallotta, TED Talk: “The way we think about charity is dead wrong” (2013) | https://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong

  5. 75% of donors seek evidence of impact before giving | Source: The Donor Trust Report – BBB Wise Giving Alliance / Give.org (2021) | https://www.give.org/donortrust

  6. Polio cases have dropped 99% globally since 1988 | Source: Global Polio Eradication Initiative (GPEI) | https://polioeradication.org/polio-today/polio-now/

  7. Under-five child mortality has decreased by 61% since 1990 | Source: UNICEF / WHO Child Mortality Report (2023) | https://data.unicef.org/resources/levels-and-trends-in-child-mortality/

  8. Over 2 billion people gained access to safe drinking water since 1990| Source: WHO/UNICEF Joint Monitoring Programme for Water Supply, Sanitation and Hygiene (JMP) | https://washdata.org/

  9. Salary transparency laws for nonprofits (e.g., in Minnesota and Vermont, USA) | National Conference of State Legislatures (2024) |https://www.ncsl.org/labor-and-employment/salary-transparency-laws

  10. Donor fatigue: fewer than 25% of first-time donors give again | Source: Bloomerang / Fundraising Effectiveness Project (2022)| https://bloomerang.co/blog/fundraising-retention-benchmarks/

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