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Having considered your objectives, you are ready to formalise a charitable giving strategy. In this stage, you should think about the goals and objectives of your philanthropy, the focus of your giving, the types of recipients you want to support, and the type of support you will provide.
To clarify your strategy, you might find it useful to write a giving strategy statement, asking yourself the following questions:
- What are the goals and objectives of your giving?
- What causes will you support?
- What areas, if any, are off limits?
- What types of recipients will you support (e.g., registered charities, social enterprises, local community projects, individuals, ethical businesses)?
- What type of funding will you provide (e.g., grants, loans, ‘quasi-equity’)?
- What non-financial support will you offer (e.g., time and expertise)?
- What giving mechanisms will you use (e.g., charitable trust, charity account, venture philanthropy fund)?
- What will be your decision process and giving criteria?
- Will you integrate your social and environmental objectives into your financial investments, such as through socially responsible investment (SRI) and sustainable finance?
In addition, consider whether you might want to involve others in your philanthropy, and what other support would be useful. Networks and other resources you might access include:
- Practitioners and advocates within your focus areas
- Philanthropic intermediaries (such as donor advisory services and community foundations)
- Professional advisers (e.g., wealth manager, solicitor, accountant)
- Other donors
- Membership associations
- Academic research
- Media coverage of your chosen focus area
- Family, friends, neighbours and community leaders
- Colleagues and individuals leading your company's corporate giving programme
Long-term committed giving is often preferred by charities, as it provides them with reliable, baseline funding and enables the charity's management to plan more effectively. Just as in business, charities do need to invest in infrastructure, such as their talent, IT and quality systems, to ensure that funds can be used to deliver the greatest impact.
Make sure the charity understands what your expectations and requirements are before you make the gift, so that the risk of misunderstandings and disappointment is reduced as far as possible.
© Copyright 2009 Association of Charitable Foundations (ACF)
Every effort has been made to ensure that the information provided in A Guide to Giving is current at the time of publication (December 2009), but the Association of Charitable Foundations (ACF) cannot guarantee its accuracy. Furthermore, there may have been subsequent changes to legislation, policy and/or to tax bands and rates. If you are considering any investment you should seek appropriate professional advice. This guide is not intended to replace professional advice on particular investments or the manner in which tax relief is applied under any scheme, and you should not rely on it for such purposes. You are responsible for your own tax and financial affairs and so should seek independent advice. ACF can not accept responsibility for the investment choices you make.
Views expressed in A Guide to Giving are not necessarily those of Philanthropy UK or the Association of Charitable Foundations.
Coutts & Co is not responsible for the content of A Guide to Giving, and the content does not constitute any advice whatsoever from Coutts & Co. The case studies and profiles within the Guide are not necessarily clients of Coutts & Co. Coutts & Co shall not be liable for any loss whatsoever arising from your reliance on any information produced in the Guide.
