How to Create a Giving Strategy
Yesterday was Giving Tuesday and I imagine you had a full inbox of requests. I like the idea of having a day to remind us to give. However, waiting until the last month of the year to determine our giving can create unintentional, hurried decisions. So, how do we avoid last minute donations and instead create an intentional giving strategy that we can use throughout the year?
For ideas, I spoke with Alan Pratt, President of the Northwest Region of The Signatry and some of my friends about their giving strategy.
Our Biggest Obstacle is Our Minds
I began by asking Alan, “What do you see as the biggest obstacle to giving?” He believes our biggest obstacle starts in our minds. According to Alan, our mindset toward money reflects either an ownership mentality or a stewardship mentality. In other words, we either view our money as strictly ours or as something we are to steward, to use wisely for the good of others. When our minds begin to shift toward a stewardship mentality, we experience more joy with our giving instead of just giving out of obligation. Alan believes this joyful attitude should be an integral part of the giving process.
Developing a Joyful Giving Attitude
How do we develop this joyful giving attitude? Before we give financially, Alan suggests we do the following:
1. Begin by taking inventory of how we are spending our time. Ask ourselves, “When was the last time I gave three hours of my time for another person or cause I believe in?”
2. Reflect on what energizes you, meaning what is happening in the world that makes you angry or is something you want to help change?
3. Think about your own life experiences and the organizations that impacted your life, a family member or a close friend.
Those Who Give Joyfully
My friends, Doug and Kelly Davidson, are an example of how their life experiences affect their giving. Doug’s father was orphaned at the age of three and went into a foster care program on a family farm where he lived in a barn. Until one day, his father’s best friend’s sister convinced her parents to take him in. What’s amazing is that these parents were already raising ten kids of their own! At the age of sixteen they took in Doug’s father and gave him clothes and a car so he could find work. They generously gave him the tools he needed to succeed and eventually raise a family of his own. So, when Doug kept seeing a request by Seattle Angels for volunteers to come alongside families who foster kids, he felt compelled to sign up. He felt a personal connection. In Doug’s words, “You should give to something that means something to you.”
Another couple, Jeff and Amy Rogers shared that during their 30’ s and 40’s they realized they were giving mainly through writing checks at auctions. They decided to shift gears and not only write checks but get their entire family involved in giving of their time to something meaningful. This shift in philosophy motivated them to open a school in Uganda, naming it after Amy’s brother. For years they traveled with their daughters and brought along others to help establish the school. What started as a pre-school/kindergarten is now a school educating 250 students of all grades and ages. Their philosophy became, “If we are involved with our hands, we will be involved with our money.” Both the Davidsons and the Rogers have a personal connection to their giving which in turn brings them joy!
Creating Your Giving Strategy
Once we understand what motivates us to give, how do we create a giving strategy? One issue many of us experience is giving to everyone who asks. While generous, this strategy may not allow for our giving to have an impact. For instance, Jeff shared that for years they spread their giving over many organizations. But now they have simplified their giving into 3 categories: 1) Church, 2) Local, and 3) Global. I like the simplicity of this method. They choose organizations that represent these categories, and each year they designate a percentage of their budget, (many suggest 10%), as follows: about one half to their church, (done monthly), and the remaining percentage to 2-3 organizations that serve our local community and then the same to those serving in specific areas globally, (annually), that align with their convictions. In addition to this annual giving, they look for new ideas to give above their budgeted percentage. That way, if they get an ASK that they don't already give to every year, they give themselves permission to go above and beyond their budgeted giving.
Additional Giving Strategies
1. Once you decide on an organization, do some research. Use sites like Charity Navigator, a rating service that rates how the organization is using the funds.
2. Take appreciated assets like stocks and each year donate a portion of your holdings to a Donor Advised Fund (DAF). You then distribute from the DAF to your charities. This enables you to give more to your charity and receive an annual tax deduction.
3. Research the different Donor Advised Fund platforms. According to Alan, platforms have different flow-through rates-meaning once funds go into a DAF, at what rate are they flowing out to charities?
4. As we build wealth, pivot from Spend, Save, Give…..to Give, Save, Spend.
5. Challenge the 10% tithe standard. Instead of giving 10% of earned income, how about shooting for 10% of net worth. (Ouch!)
