Wealth of Wisdom

CHAPTER 62A Roadmap to Successful Philanthropy

Susan Winer

Whether you are just starting out on your philanthropic journey or are considering retooling an existing philanthropic strategy and charitable portfolio, you need to have the building blocks of effective/impactful charitable giving in place to both guide your charitable activities and provide a baseline for measuring the impact of your philanthropic gifts.

A staggering amount of money is dedicated to charitable gifts each year: In 2020 in the United States, individuals, bequests, foundations, and corporations, in aggregate, gave an estimated $471 billion to U.S. charities, the large bulk of which came from individuals or families.¹ But despite the numbers, only a percentage of these funds actually account for measurable change and impact. There are real, and in some cases very good, reasons for this: funds dedicated to general operating expenses that keep organizations in business; small amounts contributed that cannot be measured; and disaster-directed funds that become part of a larger gift. In great part, however, the reason that impact and change may not be demonstrated is because many philanthropic dollars are not distributed based on a clearly defined strategy and impact action plan.

The first step toward ensuring that your philanthropic resources are deployed effectively and are aligned with your intent and interests is to have a clear understanding of what that intent is and to quantify and qualify your interests ...