Charitable industry not easy to navigate in racing

If you want to do some good in your world, spend some time in NASCAR's.

The sport's charitable opportunities are growing annually, but it's the drivers' charities that are seemingly popping up on a quarterly basis.

As if it were a status symbol or a prerequisite for their NASCAR membership card, the majority of drivers now have their own charitable foundations with Jeff Gordon as the pacesetter, who was the first to launch his charitable arm, the Jeff Gordon Foundation, 10 years ago.

Since then, the garage has seen an influx of organizations launched; 2006 saw the largest number of driver foundations created, eight alone in that year.

From 2006 to 2008, the NASCAR Foundation, the sanctioning body's vehicle for its own charitable support, saw an increase from 24 different foundations to today's count of 35. The Denny Hamlin Foundation, launched in April, is the most recent to join the growing list.

So how do the donors navigate through the laundry list of gift-giving guilds?

Most donating fans fall in line behind their favorite driver's respective foundation, but if you're choosing solely based on the cause, take notes.

If you like to save homeless dogs or get them spayed or neutered, get behind the Greg Biffle Foundation or the Ryan Newman Foundation.

If you prefer children's causes over animals then you're options are much more widespread, but be prepared to know which plight you'd like to serve.

Jamie McMurray helps young people with autism while Jeff Gordon caters to those facing life-threatening and chronic diseases, and Robbie Loomis' foundation attempts to reduce juvenile troubles and alienation -- at-risk youth more or less.

But if you'd like to serve humans and animals alike then the Tony Stewart Foundation could be a good choice or you could donate your time and money to the NASCAR Foundation which ultimately supports every charity under the NASCAR umbrella.

Wait, don't forget Ward Burton. He takes care of the environment -- natural resources, conservation, etc.

The aforementioned examples merely scratch the surface, but you get the point.

The more important point to make is the motivation behind the drivers' charities, and note tax breaks aren't the only incentive, contrary to what you cynics out there may believe.

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"Studies have shown celebrities and wealthy people are not motivated by tax benefits," said Stephanie Sandler, philanthropy expert and senior vice president of the Giving Back Fund, a group established to encourage effective philanthropy in the sports and entertainment community "It really isn't something they think about or what their financial advisers bring to their attention. The motivation is a personal one in most cases and the most successful foundations are connected to an athlete with a deep commitment to cause."

OK, well then no one fits that description better than Jeff Gordon, whose foundation is said to have the largest assets of any other driver.

"Ray Evernham's son was diagnosed with leukemia -- that's what really inspired me, to see somebody close to me going through something so tough like that," Gordon said of why he started his foundation. "You get close to it, your heart breaks for them, and you want to know how you can help. That's what started a lot of the work for the leukemia, lymphoma society, bone marrow transplants."

Image, along with feelings of obligation, I would say are other motivating factors as to why drivers start their own charities.

Yesteryear's NASCAR drivers didn't enjoy the large payouts for today's stars, such as Kyle Busch and Denny Hamlin, which explains why Gordon, err "Wonder Boy," was the first to start a foundation. Foundations came into play with the Young Gun movement into NASCAR.

These young drivers have more money than they can count, and philanthropy eases their guilt -- the guilt of becoming a multi-millionaire before they're of legal drinking age.

And as for image, wouldn't NASCAR fans think twice before booing Kyle Busch if they knew he and his Kyle Busch Foundation helped fund foster homes for unwanted children.

It certainly doesn't hurt matters.

Some drivers feel the need to have their own individual foundation primarily for control over the use of their name and the ability to get things done in an expedient manner.

While you might think holding a fundraiser and collecting some cash sounds simple, it's really very complex and riddled with red tape, Sandler said.

Tony's other side

Most see one side of Tony Stewart. Those closest to him, however, know of a different Tony Stewart whose generosity toward others is unparalleled.

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"Their name allows for flexibility and the ability to get things done quickly," she said.

And charity work is an endeavor done year round; it doesn't stop after the final Sprint Cup race at Homestead-Miami Speedway.

The foundations require senior-level staffing, executive directors and overhead costs that must be kept to a minimum, because if you're costing more than you're donating the foundation is rendered useless.

Attorneys are needed to establish 501-C3 status, necessary papers are required to be filed with the Internal Revenue Service, and guidelines for permanent status must be met within a certain period of time.

Establishing a charitable foundation is a feat not to be taken lightly. It takes more than designing a logo and then handing it over for your mother or girlfriend to run. What are the chances either of the two is versed in tax law or ethics?

According to an April study in the Wall Street Journal, the number of foundations launched by professional athletes in recent years has increased largely, but they have varying degrees of value.

Of 85 athlete foundations polled, only 35 donated more than 75 percent of their spending to charitable causes, over administrative costs and overhead. The guideline set by the Better Business Bureau is 65 percent, which is low by some standards.

It's important to point out that Gordon's rate is 80.4.

Sandy Marshall, executive director of the NASCAR Foundation, said she expects the number of drivers' charities to plateau.

"I think we saw the height two years ago and now people are stepping back and learning that foundations are a lot of work and best run with a senior staff in place," she said.

Experts estimate foundations shouldn't launch without at least $500,000 in the bank.

If you don't have the means necessary, time and money, then the driver is better off donating to one of the 35 charities on NASCAR's list.

The opinions expressed are solely those of the writer.