Getting to Know Philanthropy
Philanthropy is defined as the effort or inclination to increase the well-being of humankind, as by charitable aid or donations. By aligning your giving with your values, philanthropy becomes strategic, personal and inspirational.
In general, women’s giving tends to be scattered. Women give because their friends are involved, in honor of family members, personal experience, etc. This type of giving can cause some to feel overwhelmed, pulled in multiple directions and even ineffective. Just like with any other strategic endeavor, when giving you need a plan. This is usually when people say, oh I am not giving enough to create a plan or I already have a financial plan. A philanthropic plan is different. Let's call it a road map or an outline. It can be simple or complex, but here are the essential elements to consider.
1) Identify your passion. What are the areas you are most passionate about? What is the change you are interested in making in the world? What do I care about? What values do you believe in? What would success look like to me? These are just some of the questions that may help you identify your passion.
2) Try writing a philanthropic mission statement. According to Stephanie Clohesy of Clohesy Consulting, the most useful mission statement is a clear and succinct representation of what you wish to accomplish or contribute and who you want to be. Mission statements are only one or two sentences, but may take a long time to create or evolve over time because it is a transformational process. Each time you attempt to write or edit it, you gain more clarity. Give yourself permission to write a “draft” statement.
3) Determine how much you can and want to give annually. Consider how much you give to those things that may not fall within your strategic plan. Do you still want to have a “girlfriend fund” for those causes your friends are involved with? Have you considered your obligatory giving? Exploring where and how much you give or have given, allows you to consider your philanthropic mission and focus your future donations. You may need to meet with your advisors, your family and others to incorporate your philanthropy into your financial planning and family traditions.
4) Consider your own involvement and preferences. How do you want to be involved in your philanthropy? Who do you want to help? With whom do you want to work? With whom do you trust your philanthropic dollars? Is it important to you to have an active role, a casual role, an anonymous role? Are you more comfortable with formal or information interaction? Are you considering a giving mechanism, like a donor advised fund or a family foundation?
5) Learn from others. Engage in philanthropic educational opportunities and network with those who are involved in the areas you are interested in becoming more engaged. For example, if you are considering establishing a charitable fund, meet with other families who have recently established similar funds through commerical or community foundations. Explore issues and foundations online.
6) Give joyfully. “In philanthropy, we can return to the soul of money: money as an opportunity to nourish those things we care most about,” author of The Soul of Money, Lynne Twist. Giving is rewarding. Allow yourself to enjoy the gifts you give.
7) Review your plan. You are the architect of your own plan and philanthropy is a journey. Your giving should be joyful, while being strategic. If it is too formal, change it. Maybe as you work through your plan you realize you want to include your family in the decision making and therefore your plan will change. The plan is a roadmap, but should be flexible enough to tweak as you go. If in doubt, return to your philanthropic mission statement for clarity.
One of my favorite quotes is from Tracy Gary's book, Inspired Philanthropy. "Whether you donate $25 to a nursery school raffle, $100 to a community health clinic, or millions to a new hospital wing, you've earned the right to call yourself a philanthropist." Tracy's book is a must read for those interested in developing a plan. "Creating a giving plan and being proactive with it may not only change your life, it might change the world." So go, make the world a better place...