They say you can’t take it with you when you’re gone, and they’re right. That’s why many individuals and families blessed with material fortune choose to create a financial legacy for their descendants, their communities, and the world at large.
Philanthropic endeavors take many forms, from charities supporting specific causes to foundations giving grants to deserving awardees to donor-advised funds spreading money more widely. Some philanthropists choose to endow scholarships that allow dozens and perhaps hundreds of young people to attend university, trade school, or other educational institutions over the years.
All are worthy pursuits. Here are some more options:
Think About Your Priorities
Your resources are not unlimited, so plan accordingly.
First, think about how you can best make an impact on behalf of the causes you care about. What are your priorities when it comes to charitable giving?
After developing a list of the causes you wish to support, research the nonprofit organizations (and other groups) that do good work on them. It takes a significant amount of work to choose a charity that you truly feel comfortable with; appearances can be deceiving. Take as much time as you need to complete this step.
Decide How Much You Can Give (For Now)
If you haven’t already made a financial plan, do so now. Knowing how much you can afford to give away now and into the future is essential. Otherwise, you may find yourself with fewer resources than you expected down the road, both for yourself and for the organizations you’ve committed to supporting for years to come.
Determine How and When You’ll Give
Your big-picture financial plan will inform your more detailed giving plan, which outlines how, how much, and when you’ll distribute funds to the charities you support.
Your giving may take several different forms, including monthly or annual recurring donations, one-time gifts for special projects or activities, endowments that seed scholarships and other forms of perpetual benefit, and legacy bequests that activate at your death and can support many different types of charitable work.
Become a Board Member or Advisor
Many donors choose to pair their financial support with active stewardship. You can join them by becoming a board member or advisor to the organizations you support.
Charities don’t allow just anyone to serve on their boards or advisory committees. You may need to apply and undergo a vetting process similar to what would be required if you’d applied for traditional employment. But if you meet the standards, you’ll have an incredible opportunity to shape policy and strategy for years to come as your financial support continues.
Recruit Others to Boost Your Impact
Donors to most charities skew older. This makes sense given that older people tend to have higher incomes and more assets. However, even controlling for these factors, it’s clear that many charities leave money on the table by failing to reach younger donors.
You can change this by doing your part to recruit others to the causes you support. You can do this by serving as a “brand ambassador” for the organization, hosting fundraisers and inviting first-time donors to attend, and developing creative forms of outreach to connect with people unaware of the organization’s mission.
You Don’t Need It All
Many of the most successful investors and entrepreneurs of the late 20th and early 21st century signed onto the Giving Pledge, which asks them to give away 99% of their money before they die. For most signatories, the remaining 1% still represents a life-changing inheritance for their heirs.
However, you don’t have to sign onto the Giving Pledge or make a similarly ambitious commitment to have a big impact on your community and the wider world. If you don’t need it all, every little bit helps.
Published by: Holy Minoza