The benefits of an intentional giving strategy

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 many Americans (57%) agree they would like to be more strategic in their charitable giving.¹

“Giving is not about saying ‘yes’ to every ask,” says Meredith Camp, senior regional trust manager for Philanthropic Services with Wells Fargo 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.

Define how — and why — you want to give

Camp 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 define their philanthropic beliefs in their own words. Here’s an exercise that could help.

Step 1: Think about your values and your goals. Consider the issues that are most important to you and your family (such as education, health care, or conservation). Then, consider the long-term impact you want to make: Do you want to solve a specific problem or support a broader movement? Identifying these priorities can help guide your charitable donations toward organizations where you could make the most difference.

Step 2: Determine the causes you want to support. What efforts matter most? This could lead you to support nationwide cancer research or your local food bank. Perhaps the scholarship that helped you earn your degree inspires you to provide financial assistance to other college hopefuls. This is where your personal experiences — or those of loved ones — can tie to your values and goals.

Step 3: Review your past charitable donations. Camp says reviewing donations over a 12-month period could help you see where you might tend to go off track, which can help you stay on track in the future. Documentation could be as simple as a spreadsheet that any involved family members are able to access.

Step 4: Assess whether your giving aligns with your vision. Does your past giving align with your philanthropic vision? If not, what kinds of changes could you make around finding the right causes? Camp tells of a client whose charitable donations strayed from their passions because they had difficulty turning down other donation requests: “The family wanted to focus on education, but a large amount of the previous year’s giving went to different health-related organizations.” Such a realization is eye-opening — and could help redirect your efforts more effectively in the future.

Go beyond dollars with your charitable donations

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.

Consider how you might structure your giving plan

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. Engaging in the family’s giving helps family members align with family values, community responsibility, and legacy,” says Camp.

Make a greater impact

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 good 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.

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.