Knowledge Center
Learn more about the processes and practices of strategic giving.
Finding Focus in Your Philanthropy
Most people find it challenging to prioritize the range of pressing needs – is it more urgent or necessary to provide educational scholarships, save the environment, or build a clinic in a rural area? There is no right or wrong answer. Often people choose to spread their giving across multiple sectors.
A clear and focused path for giving, allows to move from giving on an ad hoc reactive basis to planned, strategic giving which aims to tackle specific issues close to one’s heart. Focused giving provides opportunities to learn more about the causes one cares about, and over time refines giving to achieve maximum impact.
Philanthropy in America
As the need to address pressing issues across the country and world increase, Americans profoundly support philanthropy. Generosity is obvious. Giving back is valued. Most philanthropy derives from making a monetary contribution to a charity or cause. However, more individuals & companies are seeking guidance from donor advisors to determine the best and highest use of their money as it relates to their desired impact on the world. People today want to identify and support a fresh and forward-looking approach to philanthropy with a clear path forward. Philanthropy today is more than writing a check. It is increasingly more about creating relationships.
Majority of 2021 Charitable USA Dollars Went to*
In 2021, American individuals, bequests, foundations, and corporations gave an estimated $484.85 billion to U.S. philanthropy (Giving USA 2022: The Annual Report on Philanthropy for 2021*).
Remarkably, Americans donate more than citizens of other countries. According to the National Philanthropic Trust, the vast majority of U.S. citizens donate to charity – and 91% of high net-worth households annually contribute (www.nptrust.org). Historically, Americans willingness to provide philanthropy, relates to a strong belief: We become better humans when helping others.
Four Traditions of Philanthropy by Elizabeth Lynn and Susan Wisely explores:
Statement of Key Objectives – How we define impact philanthropy
Impact philanthropy is the practice of intentionally and systematically leveraging various types of capital to assist in ways that advance empathy, innovation, and effective change.
Impact Philanthropic pursues 3 key objectives when implementing programs & services:
- Be attentive to (historical, social, and economic) inequities that shape issues we aim to impact. (empathy)
- Address systemic and institutional barriers by developing unprecedented programs, platforms, and practices. (innovation)
- Concentrate various types of capital on prevention, root causes, and reshaping broken systems. (effective change)
What Is Impact Philanthropy?
Impact philanthropy is a theory and practice of using philanthropic funds for social impact. This type of philanthropy has a 4 Step Process.
The theory of giving: The ‘why’ behind philanthropy
Impact philanthropy: Building blocks of impact for maximizing the ROI of your philanthropy
Scaling Impact Solutions
When the goal is the public good, scaling up, out, or deep is only valuable if it leads to a commensurate change in positive impact.
Scaling is a new science approach some philanthropists are taking. It’s scaling that embraces the mindset and methods of science to scale impact for the public good, by focusing on impacts over actions.
To learn more: Scaling what works doesn’t work: We need to scale impact instead
Strategic Time Horizons in Philanthropy
Getting clear on your charitable giving lifespan is one of the most crucial, fundamental decisions to make. It affects virtually everything else related to a philanthropic plan. Lifespan decision options are normally defined as:
- In-perpetuity
- Limited-life
- Revisit the lifespan question on a regular basis or at particular milestone moments
When considering the options, remember timeframes must be a regular topic of discussion at all levels of charitable giving. Aligning timeframes to initiatives will achieve the greatest impact possible.
External Resources
Andrew Carnegie: The Richest Man In The World
Giving While Living: Not Just For Billionaires
Exclusive: The Billionaire Who Wanted To Die Broke . . . Is Now Officially Broke
Perpetuity or Spend Down: It’s Not a Binary Decision