Learning How To Give Will Aid Both Your Cause And You

Charity giving is often part of financial and estate plans; now is an especially crucial time of year to focus on giving.

But many don’t maximize the effectiveness of their donations by creating a giving plan.

Few individuals take an intentional and strategic approach when giving to charity, choosing rather to give gifts on an ad hoc or unplanned basis. Others make donations periodically or reflexively.

An effective giving plan can bring maximum rewards both for charitable causes and donors who support them.

Before we explore any specific details of giving plans, keep this in mind: it is quite typical for an individual’s charitable interests, goals, and plans to evolve over time as their life changes or they gain new knowledge; so too might their contributions change with them or as their environment shifts.

Your giving plan should be reviewed periodically – at least every couple of years or annually if possible – to assess its use, impact and whether its current purpose still fits within your scope or whether other causes have taken precedence in terms of receiving gifts from you.
Early on, decide how you will measure whether a gift has made the desired impact or was effective. Some gifts make this simple: for instance, giving cash directly to food banks could provide meals to those in need who cannot otherwise afford them.

But gifts with indirect or long-term impacts, like donations to medical research, might be harder to assess. Before giving, determine an approach for measuring its success and plan a way of tracking how that gift impacts others.

Also consider how structuring of gifts impacts their impact.

The key element in an effective charitable giving plan is creating a philanthropic purpose or philosophy and setting clear goals and objectives – much as any financial planner might.

Consider whether your gifts should have local or broader-reaching ramifications; for instance, regional, national, or global. If both outcomes are desired, determine what proportion of giving should occur within each category.
After that, decide the causes and interests you wish to support. Many individuals become passionate about supporting medical conditions that run in their family or affect those they know personally.
Some prefer the arts and entertainment; others support education at specific levels or environmental causes; faith organizations also benefit immensely from charitable giving.
Some donors wish to help those currently experiencing certain situations while others look for answers as to the causes that brought about these circumstances. That is why some donate funds toward facilities treating cancer while others fund research into cures or prevention for cancer.
One decision you will need to make early on in this process is whether to give to multiple causes at the same time or focus on supporting only specific ones.
Many individuals care deeply about one or two causes and wish to associate themselves with them through giving. Their donations tend to focus in these areas while others wish to distribute smaller sums in multiple areas.
Targeted giving is advantageous as you give more to one entity at once, helping both that charity and you increase your profile with it. Giving can give you insight into their activities and operations – something some may prefer while it might not matter for others.
Next, determine whether you want to do more than contribute financially. Giving can be supplemented with volunteering; higher-level donors often are offered positions on boards or committees where they can learn about an organization while having the chance to influence policies and activities directly.
However, volunteering may give you more insight into an organization and their cause than by simply giving money directly. From day-to-day support to professional expertise donations – every organization and charity may have something they could use from you! It may even pay to explore this option further!
Volunteering will bring many interesting individuals who share at least one pursuit with you, making the entire experience of volunteering more worthwhile and enriching for both parties involved. Your final step should be figuring out a donation strategy; often both yourself and the charity can gain more when giving through nontraditional means like crowdfunding platforms such as GoFundMe or Indiegogo rather than writing checks directly to charities.
Consider first how you can maximize the tax advantages of donations so as to enable more charitable giving.
I previously reviewed the tax implications of various charitable giving strategies, including qualified charitable distributions (QCDs) from traditional IRAs and benefits associated with giving appreciated investment property rather than cash donations. Furthermore, I covered long-term donations that provide both tax deductions and income streams while benefiting charity directly such as gift annuities and remainder trusts; donor advised funds and private foundations can also provide this route of giving.
Working closely with a charity will allow you to decide the most efficient and tax-advantageous means of giving. Some don’t accept certain assets while others accept many different ones and help secure tax breaks through charitable vehicles.
Decide whether your primary gifting intention will be lifetime donations or bequests through estate plans. Also, find some mentors – people on similar journeys with you that you can learn from – so that both can share in this experience together and benefit.
Donating is easy; making gifts that maximize their effects requires work. Your donations can have greater impacts and make more of a difference when managed effectively.