Five tips to giving effectively image

Five Tips to Giving Effectively

Published: November 19, 2018

“We make a living by what we get. We make a life by what we give.” 
—Winston Churchill

The Giving Season
It’s November, that time of year when we often open our hearts, and wallets, to cherished causes. November 15th is National Philanthropy Day, which, since 1986, has been celebrating charitable activities. The first Tuesday after Thanksgiving is Giving Tuesday, a global day of giving created in 2012 as a deliberate counter to the consumption focus of Black Friday and Cyber Monday. And of course, in the middle of it all is the big day itself: Thanksgiving. 

The giving season continues through the end of the year. According to the Blackbaud Institute for Philanthropic Impact, November and December account for between 25% and 30% of annual charitable giving in the U.S.

Americans are Giving
Some quick facts on giving:

  • Annual charitable giving in the U.S. reached $471.44 billion in 20201
  • Individual donations continue to comprise the bulk of giving, at 72% of total giving, followed by foundations, bequests and corporations1
  • Approximately 91% of high net worth households give to charity1
  • High net worth households give approximately 10 times as much as general giving households annually1


Giving Successfully 
Choose with your heart —
 there are any number of worthy causes out there. Select a cause or causes that reflect your values, focus or family mission. You’ll feel a sense of fulfillment in being involved in organizations that align with your personal interests.  

Check where you give — although most organizations are legitimate and reputable, it’s always a good idea to validate. Start by making sure it is a registered charity (designated as a 501(c) (3) organization). You can check the charity’s Form 990, which is publicly available and contains a wealth of information regarding mission, financials, and other important information. is an excellent resource and provides a lot of information on over 2.7 million non-profits globally.

Be selective — as much as you may want to, you can’t give to every cause. Try to narrow down your list so that you can give in a way that will have a measurable effect on the organization or cause you support. And, remember its okay to say “no” to solicitations.

It’s not always all about money — volunteering is a great way to get to know an organization, see its impact first-hand, and feel the satisfaction of personal involvement. It’s also an effective way to involve multiple generations of your family in your giving efforts, and you may have a skill they really need. 

Be strategic — there are many options for monetary giving, including direct donations, foundations, endowments, donor-advised funds, and through sophisticated trust structures. The best method for you depends on things like your level of giving, the intended purpose of your gift, and the anticipated timing and length of your commitment. In addition, each type or structure of giving has different legal and tax implications that are important to understand before making a commitment. 

1 Nonprofit Source

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.