While philanthropy is like a business in that time, money and effort are all put toward a goal, the biggest distinction between them is goals. Businesses further monetary gain. Philanthropy furthers “humanitarian gain.” It is with this distinction in mind that we have compiled several notable things philanthropists can do to optimize return on investment.
Consider the End Goal and Focus on It.
Philanthropy is the quest to preserve something you value, change something for the better or both. Focusing on a handful of causes means that donors can have see and feel a greater impact. A good mindset is “deep, not wide.”
Seek Reliable, Influential Partners.
With 1.5 million nonprofits in the US, deciding which groups to bring on board can be taxing. Before donating, do your research. Look into the NPO’s:Ultimately, follow up “What does your organization do” with “How well has it succeeded?”
- Success in achieving goals.
- Command structure among staff and volunteers.
- Expedience in changing to meet new needs.
- Involvement with beneficiaries and stakeholders.
- Actual difference made.
Discern If Philanthropic Capital Works For You.
The US sees 800 billion, non-refundable and tax-deductible dollars going to charities and donations. Despite this, no more than one-twentieth to one-fifth goes to nonprofits; the rest flows into public and private sectors, chiefly for financial growth.
Look into potential charities and where their investments end up. If the answer displeases you, then you can ignore them. Discuss investing with your financial advisors and figure out how you can best make use of philanthropic capital.
Evaluate and Progressively Change.
Philanthropy that achieves noticeable goals over time is rare. It takes more than checks induced by feelings from the holidays. Many donate to a go-to charity without receiving any feedback on that charity’s successes or operations.
Proper philanthropy requires endurance and constant assessment of successes and failings. A proper philanthropist is one who is constantly engaged and knows when to change strategies on the fly.
Give Boldly, Now!
It is natural to save as much as possible to take care of our own. Despite this urge, many easily accomplish that goal while still engaging in philanthropy. A financial advisor can point out when it is viable to give unto others. It is also important to remember that wealth does not follow you beyond death. Rather than horde your earnings, your fellow man and your planet could use it for improvement.