How to Save the World and Make Money

Ways to Do Your Share

Many twentysomethings want to do something positive for the world but don't have large sums to give to charitable organizations whose efforts they admire.

Beyond giving what you can, though, there are numerous other ways, small and large, that you can reach out to address problems such as poverty and global warming.

Consider socially responsible investing. Investors in SRI mutual funds "are getting professional management and diversification," as do other fund investors, as well as the opportunity to "improve the planet," says Eric A. Smith, a financial planner in Seattle.

In selecting stocks, SRI funds typically screen out companies that deal in alcohol and tobacco, or which are deemed undesirable for such things as a record of pollution or worker exploitation. Some funds attempt to use their ownership stakes in various companies to push for social, political or ethical revisions.

These funds are increasingly becoming available in 401(k) retirement plans, which is good news for younger workers who may have limited investment resources. According to a recent study from Mercer Investment Consulting, 19% of defined-contribution plans include an SRI option. And at 41% of other defined-contribution plans, the sponsors intend to add an SRI fund option within three years.

For more information, Mr. Smith recommends visiting the Social Investment Forum online at SocialInvest.org or going directly to Web sites of firms that sponsor SRI funds, such as Calvert.com and Domini.com.

Consider buying "fair trade" products, which come from companies or organizations that promote living wages as well as safe and healthy conditions for workers in the developing world, says Carmen K. Iezzi, executive director of the Fair Trade Federation, an association of fair-trade wholesalers, retailers, and producers.

Many stores carry fair-trade goods ranging from crafts and clothing to coffee and chocolate. Ms. Iezzi says to look for a fair-trade logo or the words "Member of the Fair Trade Federation" on a product's packaging.

To see a listing of some fair-trade retail outlets by state go to FairTradeFederation.org and click on "Retail Stores."

In buying groceries, Karen Butowsky, a 25-year-old program analyst in Arlington, Va., makes a point to seek out locally grown produce, as a way to combat global warming. In one store she visited recently, "I couldn't find any apples that weren't from New Zealand," she complains. "All of the energy [and environmental] costs from shipping and transporting" those apples from far-away places are unnecessary, she says.

Buying local produce requires fewer "freight miles" and thus reduces the greenhouse gases emitted into the atmosphere, she says.

You might also consider shopping through "shop to give" portals such as iGive.com, BenevoLink.com and CharitableEmporium.com. A portion of the price of purchases made at online retailers that you visit after entering through these sites goes to a cause you select.

If you have time rather than money, consider donating that instead. At www.VolunteerMatch.org you can search for volunteer opportunities at over 50,000 not-for-profit and charitable organizations. Or go to Volunteer.gov, a site operated by USA Freedom Corps. At each site, just plug in your ZIP Code, select an area of interest and various opportunities in your area will appear.

If you're ready for a bigger commitment, consider programs such as Teach for America or the Peace Corps. Teach for America asks recent college graduates to commit to two years of teaching in urban and rural public schools. The Peace Corps requires a similar time commitment and volunteers usually serve in one of 73 foreign countries.
- August 5, 2007 WallStreet Journal