Choosing one or two causes doesn’t mean you don’t care about other issues—it just means that you’re making a concentrated effort to find purpose within your financial means.
Scale your approach so it fits your budget, and a charity’s needs.
Every organization has different financial needs. One of the simplest ways to ensure that your giving plan is effective involves scaling your donations to fit both your budget and the needs of an organization. Not everyone is going to have a Melinda Gates level of wealth. But, as many nonprofits will tell you, changing someone’s life doesn’t require a multimillion-dollar check.
First, determine what you can afford to give in a month. Reflect on how your budget is performing. Is it flexible? Are there areas where you can reduce your “fun” spending in favor of increasing your giving? Consider replacing your daily latte habit with a $20 monthly donation. Or skip that fancy indoor cycling class once a month and donate the funds to your favorite organization.
Once you’ve established a monthly allowance, the next step is to scale your donation to a cause. If you’re giving $250 or less a month, the difference you’re making might be clearer at a local level. For example, a small to midsize donation might go a lot further at a community domestic violence shelter rather than a high-profile, national women’s health organization.
At the end of the day, the easiest way to see how your money is being used is to ask. Don’t be afraid to meet with the local nonprofits you’re interested in. Give them a call if you’re not in the area. Organizations love to chat with prospective donors, and it will give you a chance to decide if it’s the right organization for you.
For those with a small or inflexible budget, get creative with new forms of microfinancing. Many organizations change lives by forgoing a donation in favor of a loan. For as little as $25, you can lend money to global entrepreneurs who would either be financially excluded from traditional loans or are directly creating social impact in their community. One organization that does this is Kiva, which has a historical repayment rate of 97 percent.
Grow with your plan and give in new ways.
A donation isn’t the end of your giving plan. Once you feel comfortable with the cause or handful of nonprofits you support, consider connecting in other ways. Sign up for an email newsletter, learn more about events or volunteering opportunities, contact the staff members and explore opportunities for member networking or board positions.
While engaging with philanthropy is a practical way to “put your money where your mouth is,” it’s also a path that can open doors to your professional and personal future. Your donation is usually just the beginning.
Regardless of your financial background, you can be sure that a giving plan will infuse both meaning and impact into your life. It balances your own needs, as well as addresses the needs or your community, cultivating meaningful relationships with the world around you.
Linda Davis Taylor is the CEO and chairwoman of Clifford Swan Investment Counselors in Pasadena, California, and a champion for women’s economic independence and strength. She is a frequent speaker on wealth transition, family governance, and philanthropy, and author of The Business of Family.
