With so many important causes out there, it can be challenging to determine which organizations to support and which to politely decline. But if you aren’t giving in a targeted way, you could unintentionally blunt the possible impact of your charitable donations. A recent Wells Fargo survey indicated 57% of Americans agree they would like to be more strategic in their charitable giving.1
“Giving is not about saying ‘yes’ to every request,” says Meredith Camp, philanthropic services senior manager with Wealth & Investment Management, Wells Fargo Bank, N.A. “It’s about knowing that you’re giving to organizations that support the causes you care about — and having the confidence to say ‘no’ to organizations that don’t.”
Here, Camp shares her insight on making the most of charitable donations by crafting a personal philanthropic vision, giving with purpose, and then staying on track with ongoing contributions.
“It’s about knowing that you’re giving to organizations that support the causes you care about — and having the confidence to say ‘no’ to organizations that don’t.”
end call outCamp suggests that a person’s experiences often motivate their charitable donations: “Life events can shape a person’s giving strategy or what’s important to them.” She encourages her clients to talk through their experiences so they can better define their philanthropic beliefs in their own words. Here’s an exercise that could help.
Volunteering your time and experience gives your philanthropic efforts more meaning. “Your knowledge can be helpful to a cause too,” says Camp. “Organizations look for board members who have specific skill sets, like financial acumen or leadership skills.” The hands-on involvement could bring you closer to the cause and give you a greater sense of fulfillment.
Donors have many options when it comes to structuring their charitable giving beyond basic “checkbook” donations.
For example, you might choose to establish a donor-advised fund (DAF), which is an irrevocable charitable gift that could provide greater flexibility and organization around charitable donations without additional administrative responsibilities. DAFs may be tax-advantaged too, and they help remove the pressure of immediately selecting a cause to support with each charitable donation. “With a donor-advised fund, you may receive a charitable deduction when you contribute to the fund,” she says. “And you can decide at a later time what size grants to recommend to the charities you would like to support.”
Those who have accumulated a significant amount of wealth and are focused on family legacy could choose to establish a private foundation to teach the next generation about the responsibility of and stewardship for a charitable entity. “Private foundations can be a wonderful way to include family members in the philanthropic work,” says Camp. “Engaging in the family’s giving helps family members align with family values, community responsibility, and legacy.”
Being strategic in your charitable donations not only has the potential to make a difference in the causes you care about, but it also provides greater fulfillment.
“It’s very easy to give a little bit everywhere — but we believe if you’re more intentional about giving, you’ll see a greater impact and feel even better about it,” says Camp.
To develop a strategic plan for your family’s giving, connect with your team of advisors, who can help you explore the most appropriate approach for your unique objectives.
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1 These are some of the findings of an Ipsos poll, conducted September 20–23, 2024, on behalf of Wells Fargo. For this survey, a sample of 1,004 adults age 18+ from the continental U.S., Alaska, and Hawaii was interviewed online in English.
Private Wealth is an exclusive and personalized service and product offering for qualifying clients of Wealth & Investment Management (WIM). WIM offers financial products and services through bank and brokerage affiliates of Wells Fargo & Company.
Donor-advised fund donations are irrevocable charitable gifts. The sponsoring organizations maintaining the fund have ultimate control over how the assets in the fund accounts are invested and distributed. Donor Advised Funds donors do not receive investment returns. The amount ultimately available to the Donor to make grant recommendations may be more or less than the Donor contributions to the Donor Advised Fund. While annual giving is encouraged, the Donor Advised Fund should be viewed as a long-term philanthropic program. Tax benefits depend upon your individual circumstances. You should consult your Tax Advisor. While the operations of the Donor Advised Fund and Pooled Income Funds are regulated by the Internal Revenue Service, they are not guaranteed or insured by the United States or any of its agencies or instrumentalities. Contributions are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Donor Advised Funds are not registered under federal securities laws, pursuant to exemptions for charitable organizations.
Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.
