News for Donor Advisors

Maximize your philanthropy with an annual plan that accounts for all the ways you give

Earlier this year we introduced a new series designed to help you develop strategic and impactful giving decisions for 2022.

This quarter’s post is inspired by what many call the 50-30-20 Rule. You’ve likely heard of this popular budgeting technique that recommends dividing your spending into three categories: 50 percent for needs, 30 percent for wants and 20 percent for savings or debt repayment.

While the 50-30-20 Rule is most commonly used for budgeting, we use the same logic to develop strategic and well-rounded plans for charitable giving.

Applying the 50-30-20 Rule to your philanthropy starts with reviewing the charitable gifts you’ve made over the last year and dividing them into three categories. For each donation you’ve made, ask yourself if the gift was:

• Made out of passion for the cause or organization
• A fulfillment of an obligation or out of loyalty
• A reaction to an ask

From there, you can develop an annual plan for your giving using the following proportions:

• Allocate 50 percent of your giving for causes and organizations that align with your passions.
• Assign 30 percent of your giving to groups or causes you feel a sense of loyalty to, or are obligated to support.
• Designate 20 percent of your giving for unplanned donations — enabling you to respond to developing or emerging needs.

When you create an annual giving plan that correlates with your passions and obligations, and that allows you to respond to needs as they arise, you’ll find that your giving becomes much more meaningful and is far more impactful.

Interested in learning more about how to create an annual plan for your giving? We’re here to help! Contact us today to learn how you can simplify and maximize your charitable giving and make an even greater difference in our community.