Americans tend to be very charitable. Historically, charitable giving as a percentage of GDP has consistently hovered around 2%. In 2017, this amounted to more than $400 billion, according to Giving USA. Yet, most of us don’t really understand the impact that our donations have on the causes we choose to support. After the check is written, where does the money go?
Strategic philanthropy is a way to give more effectively. It is often embraced by those who are in a financial position or state of mind to leave a legacy of charitable giving, who also wish to measure the impact of their gifts. However, anyone that regularly writes checks to their favorite organizations and causes can develop a more strategic approach to giving.
Although strategic philanthropy requires time and discipline, those who practice it often achieve more meaningful results. Whether your gifts are motivated by financial reasons or pure generosity, the following steps can help you develop a process to be more strategic and effective about giving.