Creating a Charitable Giving Strategy

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By Bennett C. Whitlock III
Whitlock Wealth Management

If charitable giving is an important part of your budget, it’s good to occasionally take a step back and re-evaluate your giving strategy. Doing so can ensure your money is used efficiently and effectively by the organizations you choose to support. Here are some steps to get you started:

STEP 1: Clarify your own values and preferences.

Before you reach for your checkbook, ask yourself a few questions. What causes are important to you? Is there a particular demographic or group of people you would like to support? Would you prefer to give to a local, regional, national or global organization? As a donor, what do you hope to see in the organization’s leadership or structure? Doing so can help you zero in on the charities that align with your personal values,
making your donation even more meaningful.

STEP 2: Consider each organization’s mission.

Once you determine which organizations meet your criteria, research each charity to make sure their programs, mission and goals match your expectations. Consider meeting with an executive or local leader to hear about the charity’s strategy and their impact on the community first-hand. During the meeting, ask
about the organization’s short- and long-term goals, as well as how they measure success. You want to be sure the charity is making progress toward achieving its goals.

STEP 3: Investigate each charitable organization’s financial health.

Look into how each donation is used and what percentage of the money goes directly to the cause. Fundraising and administrative expenses help the charity do its work; however, you should be cautious about organizations with higher overhead costs. Ask the charity for a copy of their most recent annual report and Internal Revenue Service Form 990. These forms outline the charity’s budget allocation and
financial plans and can provide you with insight into how your money is used to make the intended impact.
If you’d like an objective perspective on a charity’s financial health, fundraising practices, day-to-day efficiency and accountability standards, look at how watchdog groups evaluate the organization. BBB Wise Giving Alliance, GuideStar and Charity Navigator are several national groups offering unbiased evaluations.

STEP 4: Make giving part of your financial plan.

As you figure out your donation strategy, consider meeting with a financial planner or tax advisor who can help you select the most appropriate donation method for your financial situation. These professionals can also work with you to create a strategy for ongoing contributions or to make giving part of your legacy.
Keep in mind there may be legal or tax considerations, depending on the amount and form of your donation (i.e., check, investment donation, etc.).

By taking the time to thoroughly evaluate charitable organizations, you’ll give yourself the peace of mind that your money is being used wisely, effectively and for the purposes you intend.

Bennett C. Whitlock III, CRPC®, is a Private Wealth Advisor and Managing Director with Whitlock Wealth Management, a private wealth advisory practice of Ameriprise Financial Services, Inc. He offers fee-based financial planning and asset management strategies and has been in practice for 22 years. To contact him call 703.492.7732 or visit his website at Ameriprise Financial Services, Inc. Member FINRA and SIPC.


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