The best policy is to give and forget about it. Tell them that these personal donations, in the event of major tragedies like the earthquake, are just a miniscule portion. The Right People Generous donations of a child have to be channelised in the right direction. If you are driving by the sea and a beggar asks for a coin, you must discourage your child from giving anything. Tell the child about the importance of working and earning your daily bread.
Beggars have to be discouraged.
The Right Place Teach your children to think before they give. For instance, the funds collected for the recent earthquake are going in the wrong directions. While some villages are flooded with give-away blankets, the rest are heaped with eatables. This makes crisis-management even more difficult. Your children should be made aware of these possibilities.