Personal Finance: Another Perspective

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Personal Finance Another Perspective

• Your Future 1
• Learning to Give

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Objectives

• A. Understand the five myths of giving
• B. Understand what the scriptures say about money
  and giving
• C. Understand the principles of wise giving
• D. Understand why we should give
• E. Understand the basics of wise giving

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Case Study 1

• Data 1
• You are sitting at home and the phone rings. It
  is a person soliciting donations for an
  organization that you have never heard of. While
  you dont want to be rude, this is not one of the
  charities that you choose to donate to. What do
  you do?
• Data 2
• The difference this time is you are aware of the
  charity, The World Wildlife Fund and would like
  to know more. Where do you get information on
  the charity, their goals, programs, or the
  quality of their giving?

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Finding Information on Charities

• One of my favorite charity websites is Charity
  Navigator
• http//www.charitynavigator.org
• You can log in for free
• They can give you lots of information about
  various charities which file Form 990 with the
  IRS
• However, they do not include religious
  organizations listed as church or convention or
  association of churches which are exempt from
  filing Form 990

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Charity Navigator
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Charity Navigator
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Charitable Giving

• Is giving a one-time event or a Christ-like
  attribute?
• Elder Mark E. Petersen commented
• Instead of taking from our fellowmen, we must
  learn to giveto be good Samaritans in very deed
  to share with our less fortunate neighbors, and
  in reality show love for our fellowmen. So He
  said remember the poor, and consecrate of thy
  properties for their support. And inasmuch as
  ye impart of your substance unto the poor, ye
  will do it unto me (DC 4230-31) (Honesty, a
  Principle of Salvation, Ensign, Dec. 1971, 72).

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The Visit to Taz Murrays Candy Store
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Life is Like Taz Murrays Candy Store

• We all have our little bags of candy, the
  experiences we are to have while here on earth
• We have been given instructions as to what is
  good and badwe have agency
• If we choose wisely, we can enjoy the good
• If we fail to choose wisely, we are accountable
  as there are consequences for our actions
• And interestingly, the more we share, the greater
  will be our joy later on

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Understand the 5 Myths of Giving

• 1. Giving makes us poorer
• While in giving we have less financially
  initially, it really makes us richer in the long
  term
• Givers are happier. Research has shown that
  happy people make more money, have better
  marriages, and contribute more to society
• Givers are healthier. Research has shown that
  when people are happier, they put less stress on
  their bodies and live longer
• Givers are leaders. Research has shown that
  those who give are perceived to be leaders by
  those who observe. We are all leaders!
• (Arthur C. Brooks, Why giving Matters, BYU
  Magazine, Summer 2009, p. 25-28)

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Giving Myths (continued)

• 2. People are naturally selfish
• People are selfish yes, but not naturally
  selfish. People are unnaturally selfishwe learn
  selfishness
• Research as shown that when we are at our best
  selves, in equilibrium, where we are supposed to
  be cognitively, neuro-chemically, and
  spiritually, we are a giving people (Ibid.)

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Giving Myths (continued)

• 3. Giving is a luxury
• Giving is not a luxury--it is a necessity. It is
  the critical first 10--not the last 10
• And this is not just from a spiritual point of
  view either
• And if we want to do better and to be better, we
  must learn to give

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Giving Myths (continued)

• 4. If the government would do its job correctly,
  we would not need to give
• The day the government does all the giving in
  this country is the day we become poorer,
  unhappier, and unhealthier (Ibid.)
• We must continue to take our place as givers and
  support the communities and people who need what
  we can give
• We need it as much as they do!
• When ye are in the service of your fellow
  beings, ye only in the service of your God
  (Mosiah 217).

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Giving Myths (continued)

• 5. You must have money to give
• Giving doesnt depend on the checkbook, but on
  the heart
• What you do is more important than what you have
• I believe that if you dont give when you are
  poor, you will not give when you are rich

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B. Understand the Scriptures on Money and Giving

• The scriptures give good counsel on money and
  giving?
• It is easier for a camel to go through the eye of
  a needle than for a rich person to enter the
  kingdom of God (Mark 1025).
• For where your treasure is, there will your heart
  be also (Luke 1234).
• For what shall it profit a man, if he shall gain
  the whole world, and lose his own soul?  Or what
  shall a man give in exchange for his soul? (Mark
  836-37).

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Money and Giving (continued)

• Therefore take no thought, saying, What shall we
  eat? or, What shall we drink? or, Wherewithal
  shall we be clothed?  
• (For after all these things do the Gentiles
  seek) for your heavenly Father knoweth that ye
  have need of all these things.
• But seek ye first the kingdom of God, and his
  righteousness and all these things shall be
  added unto you (Matt 631-33).

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Money and Giving (continued)

• What about Christ and his parables
• How many of his parables were about money (or
  property and wealth)?
• It is no different today than it was then!

Matthew (8 of 10) The hidden treasureThe pearl
of great priceThe draw-net.The unmerciful
servant The laborers in the vineyard.The two
sonsThe ten virginsThe talents
Luke (9 of 12) The two debtors The good
Samaritan The importuned friendThe rich fool The
lost piece of silverThe prodigal sonThe unjust
steward The Pharisee and the PublicanThe ten
pieces of money
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Money and Giving (continued)

• What about other comments on money and giving?
• Money is the way in which we express our
  aspirations, our dreams, our ideals. Money can be
  used to build up or to tear down, to serve or to
  dominate, to liberate or to oppress (Will
  Saunders).
• Money doesnt change us. It just reveals us to
  ourselves (Anonymous).

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C. Understand the Principles of Wise Giving

• There are a number of principles of wise giving
  that can help us as we learn to give 
• 1. We are to give out of love
• We are to give out of gratitude for all that God
  has done for us. Paul writes
• And though I give all my goods to feed the poor,
  and though I give my body to be burned, if I have
  not love, it profits me nothing (1 Corinthians
  133).

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Principles of Giving (continued)

• 2. We are to give sacrificially
• Ours is a sacrificial religion
• A religion that does not require the sacrifice of
  all things never has power sufficient to produce
  the faith necessary unto life and salvation
  (Joseph Smith, Lectures on Faith, comp. N. B.
  Lundwall, Salt Lake City Bookcraft, n.d.), p.
  58.
• C. S. Lewis wrote If our charities do not at
  all pinch or hamper us, they are too small.
  There ought to be things we should like to do and
  cannot do because our charitable expenditure
  excludes them (Mere Christianity 1952, 67).

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Principles of Giving (continued)

• 3. We are to give wisely
• We are to give within our capacity to give.
• King Benjamin counseled And again, I say unto
  the poor, ye who have not and yet have
  sufficient, that ye remain from day to day I
  mean all you who deny the beggar, because ye have
  not I would that ye say in your hearts that I
  give not because I have not, but if I had I would
  give (Mosiah 424).
• And see that all these things are done in wisdom
  and order for it is not requisite that a man
  should run faster than he has strength. And
  again, it is expedient that he should be
  diligent, that thereby he might win the prize
  therefore, all things must be done in order
  (Mosiah 427).

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Principles of Giving (continued)

• 4. We are to give of our abundance
• There is a different type of accounting in
  heaven, not of dollars and cents, but of our
  capacity and willingness to give
• And he Christ looked up, and saw the rich men
  casting their gifts into the treasury. And he
  also saw a certain poor widow casting in thither
  two mites. And he said, Of a truth I say unto
  you, that this poor widow hath cast in more than
  they all For all these have of their abundance
  cast in unto the offerings of God but she of her
  penury hath cast in all the living that she had
  (Luke 211-4).

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Principles of Giving (continued)

• 5. We are to give freely according to what we
  have been given
• We are to give of our own free will
• And again Alma commanded that the people of the
  church should impart of their substance, every
  one according to that which he had if he have
  more abundantly he should impart more abundantly
  and of him that had but little, but little should
  be required and to him that had not should be
  given. And thus they should impart of their
  substance of their own free will and good desires
  towards God, and to those priests that stood in
  need, yea, and to every needy, naked soul
  (Mosiah 1827-28).

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Principles of Giving (continued)

• On the subject of giving, Elder William R.
  Bradford commented
• It is not the amount of money that we donate to
  the Church or others that matters to the Lord.
  Rather it is whether we give of our abundance or
  of our living. We should give until it is a
  sacrifice to give (William R. Bradford, Words of
  Jesus Riches, Ensign, Feb. 2003, 52).

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Principles of Giving (continued)

• On the subject of fast offerings, President
  Spencer W. Kimball said
• Sometimes we have been a bit penurious (stingy)
  and figured that we had for breakfast one egg and
  that cost so many cents and then we give that to
  the Lord. I think that when we are affluent we
  should be very generous and give, instead of the
  amount we saved by our two meals of fasting,
  perhaps much, much moreten times more where we
  are in a position to do it. I know there are some
  who couldnt (In Conference Report, April 1974,
  p. 184).

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Principles of Giving (continued)

• Statistics on Charitable giving (1991 data)
• Charitable giving as a percent of income
• Individuals earning 20-30K gave 1,207 or 4.8
• Individuals earning 30-40K gave 1,318 or 3.8
• Individuals earning 50-100K gave 1,837 or 2.5
• Why did those who earned more money give less
  than half, in percentage terms, as those who made
  less?
• Why should our giving decrease as our blessings
  increase?
• Although the data is old, the results have not
  changed much in the succeeding years

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Principles of Giving (continued)

• What has been the Lords counsel on giving?
• The prophet Alma recounted
• And they did impart of their substance, every man
  according to that which he had, to the poor, and
  the needy, and the sick, and the afflicted (Alma
  127).

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Principles of Giving (continued)

• And this is entirely from the book of Bryan (this
  is my opinion only)
• Think about giving in percentage terms, rather
  than in dollar terms
• Tithing is easy, its the other contributions
  that are hard
• Put those in percentage terms as well
• That way Heavenly Father will know that
  regardless of how much or how little you are
  blessed financially, your giving will always be
  the same
• Dont let your giving decline as your income
  increases!
• In fact, over time it should likely increase

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Principles of Giving (continued)

• President Hinckley commented
• You know, as I know, that when you pay your
  honest tithes and offerings, the windows of
  heaven are opened and blessings are showered down
  upon you. That which you give is never missed
  it becomes not a sacrifice but an investment
  under the wondrous powers of the Almighty to
  bless you (Discourses of President Gordon B.
  Hinckley, Volume 2, Intellectual Reserve, USA,
  2005, p. 330).

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Principles of Giving (continued)

• Elder F. Burton Howard wrote
• The real reason for our mortal probation is to
  confront challenges, not escape them. It is to
  learn to give, not to learn to get. In earth life
  as in the university, we cannot complain about
  not getting passing grades if we are unwilling to
  take the test. There are no shortcuts to the plan
  of salvation. There is no exaltation without
  effort. We have nothing more important to do than
  to fully, honestly, and completely obey the laws
  upon which blessings are predicated. Make no
  mistake about it, we will reap what we sow
  (Galatians 67) (On Giving and Getting, New
  Era, Oct. 1985, 44).

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Questions

• Any questions on learning the principles of wise
  giving?

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D. Understand Why We Should We Give

• 1. We have been commanded to give
• The prophet Jacob taught
• Think of your brethren like unto yourselves, and
  be familiar with all and free with your
  substance (Jacob 217).
• President Gordon B. Hinckley stated
• Without sacrifice there is no true worship of
  God. The Father gave his Son, and the Son gave
  his life, and we do not worship unless we
  givegive of our substance, our time,
  strength, talent, faith, and testimonies
  (Teachings of Gordon B. Hinckley 1997, p. 565).

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Why Give? (continued)

• King Benjamin commented
• And now, for the sake of these things which I
  have spoken unto youthat is, for the sake of
  retaining a remission of your sins from day to
  day, that ye may walk guiltless before GodI
  would that ye should impart of your substance to
  the poor, every man according to that which he
  hath, such as feeding the hungry, clothing the
  naked, visiting the sick and administering to
  their relief, both spiritually and temporally,
  according to their wants (Mosiah 426).

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Why Give? (continued)

• 2. Giving shows our love for God
• King Benjamin stated
• And behold, I tell you these things that ye may
  learn wisdom that ye may learn that when ye are
  in the service of your fellow beings ye are only
  in the service of your God (Mosiah 217).
• Sister Carol B. Thomas commented
• Sacrifice is an amazing principle. As we
  willingly give our time and talents and all that
  we possess, it becomes one of our truest forms of
  worship. It can develop within us a profound love
  for each other and our Savior, Jesus Christ
  (Sacrifice An Eternal Investment, Ensign, May
  2001, 63).

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Why Give? (continued)

• 3. Giving helps others
• King Benjamin further counseled
• But ye will teach them to walk in the ways of
  truth and soberness ye will teach them to love
  one another, and to serve one another. And also,
  ye yourselves will succor those that stand in
  need of your succor ye will administer of your
  substance unto him that standeth in need (Mosiah
  416-17).

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Why Give? (continued)

• 4. Giving helps us to become more like Christ!
• President Marion G. Romney (1897-1988) taught
• The Lord doesnt really need us to take care of
  the poor, but we need this experience for it is
  only through our learning how to take care of
  each other that we develop within us the
  Christ-like love and disposition necessary to
  qualify us to return to his presence (Living
  Welfare Principles, Ensign, Nov. 1981, 92
  emphasis in original).

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Why Give? (continued)

• 5. Giving helps us repay an un-payable debt
• There is one final debt, a debt we can never
  repay. And while we can never repay the debt, we
  can try. King Mosiah, in Mosiah 2 20-21 states
• I say unto you, my brethren, that if you should
  render all the thanks and praise which your whole
  soul has power to possess, to that God who has
  created you. . . I say unto you that if ye should
  serve him who has created you from the beginning,
  and is preserving you from day to day, by lending
  you breath. . .I say, if ye should serve him with
  all your whole souls yet ye would be unprofitable
  servants.

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Questions

• Any questions on why we give?

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E. Understand Basics of Wise Giving (phone,
door-to-door, or mail)

• Before you give a penny!
• 1. Ask for the charity's full name and address.
• Get identification from the solicitor.
• Don't be fooled by names that look impressive or
  that closely resemble the name of a well-known
  organization
• 2. Ask if the charity is licensed by state and
  local authorities
• Registration or licensing is required by most
  states and many communities
• 3. Ask if your contributions are tax deductible
• Contributions to tax exempt organizations are not
  always deductible. Is it a 501c3 organization?

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The Basics of Giving (continued)

• 4. Check out the organization with the Better
  Business Bureau (BBB).
• Find out what percent of their donations go to
  programs, fund raising, and administrative. The
  BBB recommends
• 1. At least 50 of the charity's total income to
  be spent on programs discussed in the literature
• 2. No more than 35 of contributions to be spent
  on fund raising, and
• 3. No more than half of the charity's total
  income to be spent on administrative and fund
  raising costs
• Supporting causes where these limits are not
  reached may not be the best use of your funds

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The Basics of Giving (continued)

• 5. Watch out for statements such as "all proceeds
  will go to the charity"
• This can mean that the money left after expenses,
  such as the cost of written materials and fund
  raising efforts, will go to the charity. These
  expenses can make a big difference, so check
  carefully
• 6. Dont worry about unordered merchandise.
• If unordered items such as key rings, greeting
  cards or pens are enclosed with an appeal letter,
  remember you are under no obligation to pay for
  or return the merchandise

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The Basics of Giving (continued)

• 7. When you're asked to buy candy, magazines,
  card, or tickets to a dinner or show to benefit a
  charity, be sure to ask what the charity's share
  will be
• You cannot deduct the full amount paid for any
  such items, as the IRS considers only the part
  above the fair-market value of the item to be a
  charitable contribution. If you pay 10 for a 8
  box of candy, you can only deduct 2 for tax
  purposes

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The Basics of Giving (continued)

• Once you decide to give
• 1. Do not give cash
• Always make contributions by check and make your
  check payable to the charity, not to the
  individual collecting the donation
• 2. Keep records of your donations (receipts,
  canceled checks, and bank statements) so you can
  document your charitable giving at tax time
• Although the value of your time as a volunteer is
  not deductible, out-of-pocket expenses (including
  transportation costs) directly related to your
  volunteer service to a charity are deductible

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The Basics of Giving (continued)

• 3. Don't succumb to pressure to give money on the
  spot or allow a "runner" to pick up a
  contribution
• The charity that needs your money today will
  welcome it just as much tomorrow
• 4. Call your local BBB if a fund raiser uses
  pressure tactics such as intimidation, threats,
  or repeated and harassing calls or visits
• Such tactics violate the CBBB's recommended
  Standards for Charitable Solicitations
• These ideas are from Tips on Charitable Giving,
  1986, Council of Better Business Bureaus, Inc.

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The Basics of Giving (continued)

• What About Unwanted Mail?
• Decide in advance which charities you want to
  support and discard appeals from all other groups
• Don't feel guilty about not supporting all groups
  writing to you. You physically and financially
  cant! But you can help the most important to
  you!
• Stop giving to all those that mail you
  solicitations, and they will stop soliciting you

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The Basics of Giving (continued)

• What about unwanted Telephone, Door-to-Door, and
  Street Solicitations?
• Decide in advance what your Family Giving
  Policy is and stick with it
• I tell them We have a Family Giving Policy
  that we do not give over the phone or to
  door-to-door salespeople over 12 years old. If
  you will send (or leave) material covering your
  charity, I will be happy to review it later and
  make a decision. We do not commit to anything via
  phone or door-to-door
• Rarely do I get things in the mail (or left) in
  response to our Family Giving Policy

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Other Sources

• Two good locations for information on charities
  are
• Better Business Bureaus Wise Giving Alliance at
  www.give.org. It rates over 400 different
  charities. It is a great resource
• Charity Navigator, an independent charity
  evaluator at www.charitynavigator.org. It works
  to advance a more efficient and responsive
  philanthropic marketplace by evaluating the
  financial health of America's largest charities

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The Basics of Giving (continued)

• President Gordon B. Hinckley said
• Generally speaking, the most miserable people I
  know are those who are obsessed with themselves
  the happiest people I know are those who lose
  themselves in the service of others (Whosoever
  Will Save His Life, Ensign, Aug. 1982, 5).
• Elder Joseph B. Wirthlin of the Quorum of the
  Twelve Apostles has said
• If the Savior were among us in mortality today,
  He would be found ministering to the needy, the
  suffering, the sick (Inspired Church Welfare,
  Ensign, May 1999, 78).

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The Basics of Giving (continued)

• Tithing Principles and Promises
• Malachi 310
• Bring ye all the tithes into the storehouse, that
  there may be meat in mine house, and prove me now
  herewith, saith the LORD of hosts, if I will not
  open you the windows of heaven, and pour you out
  a blessing that there shall not be room enough to
  receive it.
• DC 64 23
• Behold, now it is called today until the coming
  of the Son of Man, and verily it is a day of
  sacrifice, and a day for the tithing of my
  people for he that is tithed shall not be burned
  at his coming.

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The Basics of Giving (continued)

• My Favorite Charities
• Following are a few of my favorite charities
• My principles are
• Support charities which are consistent with my
  personal goals and values
• Support charities which help people worldwide and
  make the world a better place
• Support charities which are effective in their
  use of the widows mite. They will be wise with
  others and my funds

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The Basics of Giving (continued)

• Fast Offerings Principles and Promises
• President Marion G. Romney stated
• Caring for the poor is a covenantal obligation.
  It follows, then, that we look after our poor and
  distressed not only because it is convenient, or
  exciting, or socially acceptable we should do it
  first and foremost in fulfillment of our covenant
  with the Lord that we will do so (Marion G.
  Romney, Caring for the PoorA Covenantal
  Obligation, Ensign, Nov. 1978, 87).
• He also said
• If we will double our fast offerings we shall
  increase our prosperity, both spiritually and
  temporally. This the Lord has promised, this has
  been the record (Henry D. Taylor, The Law of the
  Fast, Ensign, Nov. 1974, 14).

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The Basics of Giving (continued)

• LDS Charities (Humanitarian Services)/Perpetual
  Education Fund
• 100 of everything you give goes to those in need
• Missionary Funds
• I believe the Lord helps those who help
  missionaries
• Deseret Industries
• What a better way to give of things that are
  still good
• Other charities
• BYU Annual Fund, BYU Scholarships, Boy Scouts of
  America, The United Way, Habitat for Humanity,
  etc.

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The Basics of Giving (continued)

• Elder Robert D. Hales of the Twelve stated
• You have received much in your life go forth and
  freely give in the service of our Lord and
  Savior. Have faith the Lord knows where you are
  needed. The need is so great, brothers and
  sisters, and the laborers are so few (Couple
  Missionaries A Time to Serve, Ensign, May 2001,
  27).

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The Basics of Giving (continued)

• Elder Vaughn J. Featherstone said
• Now my young friends, think of all the
  opportunities you will have to serve at
  inconvenient times. I promise you that most of
  the service you render to the Lord will come at
  times not convenient to you (Vaughn J.
  Featherstone, True Christlike Service Is Seldom
  Convenient, Tambuli, Aug. 1984, 34).

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The Basics of Giving (continued)

• Elder Vaughn J. Featherstone concluded
• My beloved young friends, determine to serve one
  another. Listen to the spirit when your flesh is
  weak. For truly the Master said, Inasmuch as ye
  have done it unto one of the least of these my
  brethren, ye have done it unto me (Matt 2540).
  The blessings are tenfold when we do those good,
  kindly acts of Christian service when it is
  inopportune or not convenient (True Christlike
  Service Is Seldom Convenient, Tambuli, Aug.
  1984, 34).

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The Visit to Taz Murrays Candy Store
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Review of Objectives

• A. Do you understand the myths of giving?
• B. Do you understand what the scriptures say
  about money and giving?
• C. Do you understand why we should give?
• D. Do you understand how to give now?
• E. Do you understand the basics of wise giving?