by Calvin Edwards
Most of us spend more time planning a vacation than we do planning our giving. This is all the more remarkable when we recognize that Americans are tremendously generous and about 2% of the Gross Domestic Product is made up of donations.
Arguably, in most households their giving is the least contemplated “major purchase” each year.
Bill Gates said, “Giving money effectively is almost as hard as earning it in the first place.” It seems we often shy away from that hard work and give reactively with our instincts. Daryl Heald of Generous Giving has said that much giving is like tipping-we give on an impulse if we like what we see.
But society’s great philanthropists have been much more strategic and reflective about their giving. John D. Rockefeller said, “Giving should be entered into in just the same careful way as investing . . . . Giving is investing.”
In his famous essay, “Wealth,” Andrew Carnegie stated, “It is well to remember that it requires the exercise of not less ability than that which acquired the wealth to use it so as to be really beneficial to the community.”
Religious givers who see themselves as stewards of God’s resources should be even more careful to ensure that their giving is effective and well planned. One way to exercise the kind of care of which Rockefeller speaks is to develop a written giving plan.
In their book, Inspired Philanthropy, Tracy Gary and Melissa Kohner state, “Creating and using a giving plan will give you a sense of control, purpose and direction… A thoughtfully developed and conscientiously implemented giving plan will tell you where your philanthropic hours and dollars are going” (p. 3).
Here are a few pointers to help develop your own personal giving plan:
- Plan annually, at the end of each year. Make it a part of your New Year’s Resolutions.
- Pray through what you believe God would have you do; be guided by your passions, beliefs, and convictions. In light of how God made you, what should you support?
- Plan to give promptly and regularly. Don’t do it all at year-end.
- Set “for sure” goals, and “stretch” goals. Ron Blue’s model of “should give . . . could give . . . and would give” is excellent (see his book Generous Living, pp. 123-129).
- Include gifts from four asset classes-finances, time, skills & influence and things.
- Leave room for spontaneous and whimsical giving-especially for unexpected personal needs of others.
- Scripture says to support the poor and needy-don’t overlook that sector.
- Include your spouse; don’t make it a private matter.
So what does a giving plan look like? To get started, a single piece of paper will do. Write out a giving mission statement-what you believe you should accomplish through your giving.
Then identify the 2-3 sectors you wish to support. I use 11 for givers focused on faith-based organizations: urban, poverty & disaster relief, evangelism, education, children & youth, discipleship, family, public policy & advocacy, arts & culture, human services, and church & denomination.
Next, list the organizations you will support in each sector to which you are committed, or note that you need to find one. Finally, after careful thought and prayer, put down the amount you will give-money, time, skills and things-and when you will make the contributions.
Don’t forget to pencil in the stretch goals to which you will rise if circumstances permit.
With these simple steps you will have a basic giving plan, something to guide in your personal philanthropy. It can be enhanced later, but for now you will have taken a big step towards intentional giving.
After more than 20 years of executive management in the nonprofit community, Calvin Edwards now serves as an advisor to high-capacity donors to nonprofit and faith-based organizations.
Previously, he was executive vice president for Walk Thru the Bible Ministries in Atlanta, GA and subsequently ran Peter Lowe International in Tampa, FL.
More recently he was vice president at Ronald Blue and Co., which offers financial planning and investment management services to high-net worth families.
Calvin Edwards & Company is a philanthropic consulting firm located in Atlanta, GA. For more information on the firm and their services visit their website at www.calvinedwardscompany.com.
