Do you want to make a positive impact but have no idea where to begin? Getting started on your philanthropic journey can feel overwhelming, but establishing a structured approach can simplify the process and help you develop a strategic plan that supports your underlying values and goals.

Where do I start?

Before making donations or volunteering, take the time to consider your desired impact. Reflecting on the purpose behind your charitable giving will make your philanthropic efforts more intentional and provide a clear roadmap for future engagement.

Some questions to consider when defining your mission are:

• What are you passionate about?
• How can you identify organizations that align with these passions? And how will you measure this?
• What change do you want to see in the world?
• How do you want to be involved in this change?
• How are you currently supporting this purpose (if at all)?

After brainstorming, spend time synthesizing your ideas into a mission statement – this is not a detailed strategic plan, but rather an overarching purpose or theme for your philanthropy. Your mission statement should be clear and concise to effectively guide your action plan and maintain your motivation.

How do I approach giving? Time, treasure, and talent.

Now that you have your mission outlined, you can get started on your action plan. You can look at your action plan through three pillars: time (volunteering), treasure (donations), and talent (joining a nonprofit board).

How can I spend my time to support my philanthropic mission?

Your action plan should clarify the amount of time you will spend supporting your philanthropic mission. While you might want to volunteer on a weekly basis, that commitment may not be achievable alongside your other obligations. Focus on the level of involvement that fits comfortably in your schedule, allowing you to contribute meaningfully without overextending yourself. Some questions to consider are:

• How much time does your schedule allow for volunteering? Where is there space to include volunteering?
• How much time – weekly, monthly, quarterly, or yearly – would you like to devote to volunteering?
• What impact are you hoping to have by sharing your time with your organizations of choice?

Once you’ve outlined how you will allocate your time, research which organizations offer volunteer opportunities during the times that you are available. Most organizations provide detailed information on how you can get involved and the time commitments required on their websites.

How should I determine who to donate (my treasure) to?

When it comes to supporting organizations through donations, we recommend creating a budget/outline for your philanthropic giving that will help clarify your philanthropic goals.

For example, if you have a yearly budget of $1,000 for philanthropy, your outline might look like this:

• $500 toward organizations whose activities fit within the goals of your philanthropic mission
• $300 toward causes for friends and family (e.g., running a marathon for charity)
• $200 toward philanthropic events (e.g., fundraisers, golf outings for charity)

Establishing a budget that aligns with your philanthropic mission is essential to ensure your donation remains within your financial means.

When considering donations, we also recommend spending time vetting charities to determine if your contributions will be best supporting your overall goals. Two places to check are:

• GuideStar: A database that includes information on nonprofits, such as 990 forms, that you can download to see better insight into the spending and structure of your chosen charities
• Charity Navigator: A site that rates charitable organizations on a four-star scale by evaluating them on categories including accountability and finance, impact and results, leadership and adaptability, and culture and community.

Not only is charitable giving a great way to give back, it’s also an opportunity to reduce your taxable income. Donations to qualified charities are tax deductible, so be sure to ask yourself the following questions before making your donation:

• Is my donation going to a qualified charity?
  • You can look this up on the IRS website.
• In what form should I make my donation?
  • Often, gifting appreciated stock to a charity, rather than cash, can benefit both you and the charity. If you sell a stock, you will owe capital gains tax. However, if you gift a stock directly to a qualified charity that you have held for more than a year and has appreciated in value, you avoid paying a capital gains tax, thus increasing the value of your gift. Charities can hold onto the appreciated stock for potential future gains, or they can sell it to fund immediate needs.
• Are you okay with itemizing your taxes?
  • To claim a charitable deduction, you must itemize your taxes. Some taxpayers prefer to use the standard deduction ($14,600 for 2024) if it is higher than the total of their itemized deductions. Others prefer not to itemize their deductions as it can be time-consuming and requires detailed records and documentation.
• Have you spoken to your financial advisor?
  • Before considering what type of asset you want to gift to a qualified charity and what the tax benefits might be, it is important to double check your decisions with a trained professional.

How can I use my talent by joining a nonprofit board?

Another way you can work toward your philanthropic goals is by joining a nonprofit board. Sharing your expertise and ideas is an impactful way to add value to an organization that aligns with your mission.

Begin by researching nonprofits that align with your mission and interests. Consider questions such as:

• What programs have been successful?
• Where are there areas of opportunity for the organization?
• What does the organization want to focus on in the next few years? Does this align with your mission?
• What is the time commitment? How often does the board meet?
• Are there monetary commitments, like a minimum yearly donation? Does this fit within your budget?

Next, you’ll create a personal sales strategy to identify and clearly communicate your strengths. Boards are looking for members with specific skill sets – it may be technology, financial analysis, or marketing. Ask yourself:

• How can I add value to this organization with my skill set?
• Can I highlight a unique perspective through writing or public speaking? (This can be a great way to increase your name recognition and personal brand.)

Finally, consider how you can build and leverage your network; this is key to identifying and getting nonprofit board opportunities.

• Are there any college alumni groups, industry conferences, or local organizations you can join?
• Who can you connect with on LinkedIn from the current board? Do you have any mutual connections?

Seek out a nonprofit board that supports the same values and objectives outlined in your mission statement. It is equally as important to find a board with members that foster a positive culture and encourage you to be your best self. Above all, make sure that you enjoy what you do.

Conclusion

Taking a step back to think about what causes you value most can help you develop a self-guided mission statement that is broken down into thoughtful action items. Philanthropy is a great way to instill personal values and make a difference. By understanding your motivations behind giving back, you can better define how and where you want to make an impact.