Make your donations impactful

#173

I recently read an article on better mechanisms to channel your philanthropic enthusiasm. Here are some strategies you can adopt to ensure you donate in a structured manner:

For many of us, charitable giving is mostly ad hoc or reactionary — something done after a natural disaster or around the holidays—and that’s definitely better than not giving at all. But the donations you make comes from your hard-earned money most of the time, which means that each one deserves the same level of planning and care that you’d give to your other investments.

And that’s exactly what a donation is: an investment in an issue that’s important to you. Build a philanthropic portfolio over time to track your donation habits.

It’s easy to follow the herd and blindly support issues everyone else is supporting, but to create a philanthropic portfolio that you find exciting and inspiring, it’s important to reflect on the causes that matter most to you. Write down the causes that come to mind. Order them in a way you prefer and review the list every few months.

Next, find organizations or causes that align with your values and donation intention. Research on the reach and impact of the organization. Then decide your budget. Once you divvy up your allocated amount, start giving, while also deciding between a one-time donation versus a recurring one. Recurring donations also help you better plan your expenses and drive overall financial discipline for you and your family.

When re-evaluating your portfolio over time, don’t hesitate to swap the causes you support as your interests, intentions, and priorities change. The important thing is that you’re putting your money to work in a way that you find meaningful.