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How can you ensure that a donor's gift makes the biggest impact?

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You want to make a difference with your philanthropic giving, but how can you be sure that your donation is used effectively and efficiently by the charity of your choice? There are many factors to consider, such as the mission, vision, values, goals, strategies, outcomes, and impact of the organization. Here are some tips to help you evaluate and select the best charity for your gift.

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1 Research the charity

Before you make a donation, do some homework on the charity you are interested in. You can use online tools and databases, such as Charity Navigator, GuideStar, or GiveWell, to find information about the charity's financial health, transparency, accountability, and performance. You can also check the charity's website, annual reports, newsletters, and social media to learn more about its programs, activities, achievements, and challenges. Look for evidence of how the charity measures and reports its results, and how it uses feedback from its beneficiaries, donors, and partners.

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Simon Hickman

Charity & Church Insurance Broking & Advisory - CEO @ Access Insurance Services - a Benefact Group Company. Charities.network
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From a UK perspective check the Charity Commission website for the report and accounts and ask (or look for ) for any impact statements. If you are asked by fundraising company employees, do check that they give you details of their remuneration under the contract and the expected outcome.

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2 Align your values and goals

Another important step is to make sure that your values and goals match those of the charity you want to support. You may have a personal connection or passion for a specific cause, issue, or population. You may also have a preference for a certain type of intervention, such as education, health, environment, or human rights. You may want to support a local, national, or international charity, or a combination of them. Whatever your criteria are, you should look for a charity that shares your vision and mission, and that has a clear and compelling case for support.

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Doug Evans, CFRE

VP & ED @ Forsyth Tech Foundation | Advocate for Equitable Philanthropic Education | Philanthropy Nerd | Consultant
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Alignment is key to the best gifts. They should align a donor’s values with shared impact for mutual benefit. Listen to your donor and understand what they give too and more importantly why. Find the way to present giving as mutually beneficial by considering how to reframe the impact. For Example: A lot of people support humane societies and ASPCA’s. While donations are helpful for everyday care of pets in a shelter. Veterinarians usually volunteer their time and that has a lot more value to these organizations through their pro bono work. So why not support a scholarship or fund that supports veterinary science. Doesn’t that make a bigger impact? See reframe, align and magnify impact. Alignment often depends on perspective. Shift it.

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Daniel Jones

Chief Purpose Officer at Stewardship
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As well as finding a values and goals match, it can also be helpful to consider what type of giving will keep you motivated in your philanthropy - do you enjoy investing early and being hands on to help it grow? Are you interested in innovative new ventures that could be the next big thing with the right backing? Or would a lasting relationship over many years keep you engaged? Lining up your style of giving with values and goals will keep you inspired in your philanthropy.

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3 Choose the right type of gift

Once you have identified the charity that best fits your values and goals, you need to decide what type of gift you want to make. There are different ways to give, such as cash, check, credit card, online, wire transfer, stock, real estate, or other assets. You may also want to consider the timing and frequency of your gift, such as one-time, monthly, quarterly, or annually. You may also want to explore the options of planned giving, such as bequests, trusts, annuities, or life insurance. Each type of gift has its own advantages and disadvantages, depending on your financial situation, tax implications, and philanthropic objectives.

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Daniel Jones

Chief Purpose Officer at Stewardship
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For larger or more complex philanthropic giving it can pay dividends to involve one or more advisors to help make any gifts as tax effective and impactful as possible, as well as lightening the administrative load on the receiving charities. As well as your own advisers it can be incredibly helpful to work with specialist philanthropy services and advisors, including Donor Advised Funds, to ensure your gifts are managed according to your preferences. Donor Advised Funds will often complete additional due diligence on the charities you have chosen, as well as follow up impact reporting, to give you added peace of mind that your gifts will be used wisely.

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4 Communicate with the charity

Another tip to ensure that your gift makes the biggest impact is to communicate with the charity before and after you make your donation. You can contact the charity's staff, board members, or volunteers to ask questions, express your interests, share your expectations, and provide feedback. You can also request a written acknowledgment, receipt, or thank-you letter from the charity, as well as a report on how your gift was used and what outcomes it achieved. You can also follow up with the charity regularly to stay informed and engaged with its work and progress.

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5 Evaluate your impact

Finally, you should evaluate your impact as a donor and assess whether you are satisfied with your giving experience and results. You can use various criteria to measure your impact, such as the quality and quantity of the outputs and outcomes of the charity's programs, the feedback and testimonials from the beneficiaries and stakeholders, the recognition and appreciation from the charity and the community, and the personal fulfillment and joy you feel from giving. You can also compare your impact with your initial goals and expectations, and identify any gaps or areas for improvement. You can also use your evaluation as a learning opportunity and a basis for future giving decisions.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you ensure that a donor's gift makes the biggest impact?

1

2

3

4

5

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1 Research the charity

2 Align your values and goals

3 Choose the right type of gift

4 Communicate with the charity

5 Evaluate your impact

6 Here’s what else to consider

Philanthropy

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How can you ensure that a donor's gift makes the biggest impact?

1

2

3

4

5

6

1 Research the charity

2 Align your values and goals

3 Choose the right type of gift

4 Communicate with the charity

5 Evaluate your impact

6 Here’s what else to consider

Philanthropy

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