How important is it to give to charity?

Nevermind those big "corporate charities" but those that actually help people?

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The right charity, that gives a hand up, rather than a hand out is very important. I like Kiva.org. A third world micro-finance charity and lends people capital to get them an education or into business to provide for their families. The loans are repaid and you can then lend the same money again and again.
I have gotten into the habit of making a loan as a memorial to friends who pass away, instead of sending flowers to a funeral.