The Motley Fool: Yes, you can invest in good

The Motley Fool has raised nearly $3 million for charity over the past decade. Our annual charity drive, now focused on financial literacy, is again under way. Here are some impressive organizations:

“Mercy Corps’ Silent Disasters program notes that over the next 10 years, 1 billion young people in developing countries will compete for, at most, 300 million new jobs. Through innovative approaches incorporating financial literacy, mentoring and job-skill training, Mercy Corps is preparing the next generation with the tools they’ll need to define what their economic futures will look like.

“Junior Achievement Worldwide has been inspiring and preparing young people to succeed for more than 88 years by partnering with businesses and educators to provide in-school and after-school programs bridging the gap between school and the real world. In the United States and more than 100 countries, it’s synonymous with financial literacy, entrepreneurship and work-readiness education for students in grades K-12.

“Corporation for Enterprise Development (CFED) ties financial education to personal savings. Special accounts for young people provide financial instruction while teaching kids the practical discipline of saving. Savings are matched. And when young people see their account balances grow and watch peers tap the accounts for college, starting businesses and buying homes, they realize they can take control of their own lives.

“Operation Hope’s Bank on Our Future program offers financial education for youth ages 9 to 18 at no cost to school districts, with a focus on urban, underserved communities. The program spans checking and savings accounts, credit, investing and dignity. Classes are taught by volunteers who deliver messages of empowerment, responsibility and hope.

“Share Our Strength’s Operation Frontline program teaches low-income families how to use their limited financial resources wisely through hands-on courses in financial literacy and food budgeting.

Learn more about these organizations and how to support them at www.foolanthropy.com.

Ask the Fool

Q: What’s a money market fund? — T.H., Knoxville, Tenn.

A: It’s a mutual fund that buys goodies such as Treasury bills, short-term commercial debt and certificates of deposit. It sticks to short-term, high-quality investments and is relatively safe. Money market yields vary according to short-term interest rates and typically top rates offered by standard bank accounts. But they fall dramatically short of the stock market’s historical average annual return of 10 percent. They’re great for short-term savings, but are ill-suited for long-term investments. Learn more about short-term savings and find good rates for your money at www.fool.com/savings and www.bankrate.com.

My dumbest investment

Back in early 2005, I invested as a partner with four other individuals in a seafood café and grill by the beach. I didn’t look into my partners’ business backgrounds or their accounting books.

I just trusted what one of them told me about the prospects of the business because he was an old friend, and because his business supported the café with tours and dinner packages every month. I lost everything! — Mike, via e-mail

The Fool Responds: Ouch. Restaurants have long been very risky ventures. It’s estimated that more than half of new restaurants fail within the first few years. As you now know, whenever you’re considering going into business with someone, be sure to learn as much as you can about him, along with other risk factors.

Think about the person’s personality, too — will you be comfortable working with him? Consider your own risks carefully, such as how tied up your money will be. Remember that while stocks carry some risk, too, you can always sell them quickly if you need to.