WHAT motivates you to give to charity? Are you seeking recognition or is it a selfless gesture in the hope that your gift will help someone in need?

       The act of giving is described in many reports as “giving from the heart” and not expecting anything in return.

       In fact, your small act of kindness can have a big impact on someone’s life.

       Malaysians are a generous lot as every time there is a call towards a cause, they are selfless and donate generously.

       This was well demonstrated during the recent floods that hit many states. Malaysians from all walks of life came forward to help those in need.

       Some even make it a ritual to donate monthly including for some children’s school fees, or to some families that are in need of funds.

       For some corporations, giving back to society is part of their corporate social responsibility (CSR) initiative.

       This comes in many forms including scholarships, donations, buying of computers, offering training and even setting up food banks for the needy. Giving a gift voucher to someone to buy essentials is also an act of generosity.

       Increasingly, with environmental, social and governance (ESG) under much scrutiny, many corporations that had never engaged in social causes are now looking at ways to do so because their investors are demanding for them.

       A report said CSR and ESG are related to social responsibility of businesses.

       It adds that CSR holds businesses accountable for their social commitments in a qualitative manner while ESG helps measure or quantify such social efforts.

       Some of the wealthiest charities globally listed on the web are Novo Nordisk Foundation with an endowment of US$69.9bil (RM296.06bil), Bill & Melinda Gates Foundation (US$51.9bil or RM219.82bil), Stichting INGKA Foundation (US$38.8bil or RM164.34bil) and Wellcome Trust (US$37bil or RM156.71bil).

       Before donating, it is important to check if your money will reach those it is intended for. The last thing you want is your donation becoming part of a scam.

       Not every company can go to the public for donation.

       Suruhanjaya Syarikat Malaysia head of regulatory and legal services Ravinderjit Kaur said only a company limited by guarantee (CLBG) is able to collect donations from the public for a cause.

       There are 2,869 CLBGs in the country, of which 712 are not active, she said at the recent virtual lecture series organised by SSM in conjunction with its 20th anniversary. “CLBG are non-profit based public companies. Their income is derived from the activities they undertake and channelled back according to what their objectives are,’’ she said.

       They have no shareholders and no share capital. Funds are derived from members’ contribution and donations. They generally engage in charitable, scientific, religious and artistic activities, she adds.

       A CLBG can be a foundation, council, relief agency or even an institute.

       Crowdfunding platforms have also been used to raise funds online, other than social media platforms and online fundraising platforms.

       According to the US federal trade commission website, it is best to do your research before you give to avoid donating to a scammer.

       Find out more details on the website of the fundraiser and whether the monies you are parting with in charity actually goes to the cause the fundraiser is asking donations for and not other causes, a report said.

       While donating is a charitable act, do find out if the fundraiser is registered and look for the tax deductible element.

       If you are donating online, ensure that the web page where you are entering your payment has “https’’ in the web address, the report said.

       There are many scams and scammers, so be careful even if you are giving to a good cause because your objective of giving is to help someone, not to enrich the fundraiser.