All donors have a “philanthropic portfolio” that includes gifts that aren’t necessarily aimed at maximizing social impact. That is especially true during a crisis. At the beginning of the COVID-19 pandemic, you may have found yourself making impromptu donations to respond to urgent asks or compelling stories that emerged. As the crisis stretches on and you ask yourself, “How can my money do more good?”, here are tips to answer that question well:
Focus on the goal
As the saying goes, “If you don’t know where you’re going, any road will get you there.” High impact philanthropy starts by asking, “What is the philanthropic goal of this donation?” That goal could be feeding the hungry, ensuring all kids learn, reducing poverty, improving the lives of women and girls, or any number of other worthy causes. Personal experiences often lead donors to commit to a particular community or a particular cause. It is fine to let the heart choose the goal. Once you are clear about the goal, your head can help you find the programs and organizations that are well-positioned to reach that goal.
A little research goes a long way
Unlike a decade ago, donors no longer need to spend days doing their own due diligence or trying to interpret tax returns in the hope of identifying a nonprofit worthy of their gift. Organizations like ours now exist to do the legwork so that individual donors can get to impact faster and with more confidence. The high impact opportunities profiled in this guide—and many more on our website— offer specific options that our team has analyzed for program efficacy and cost-effectiveness. Within each profile, we offer tips for getting involved in an issue, including what to look for in relate nonprofits. Still can’t find what you’re looking for? You’ll find a wealth of free information on our website.
Think 'bang for your buck'
Even with the influx of giving throughout COVID-19, there is never enough money to solve every problem. To do more good, every donor needs to ask, “How can my money go the farthest?” Comparing nonprofit organizations can help answer that question, but don’t just look at their expenses. That’s literally only half the equation. Instead, compare what the organization spends overall to what it achieves. For example, a $1 donation can translate to enough food for 15 meals at a global food bank. $500 can connect five new families to telehealth services for new mothers and infants. $1000 can provide transportation and utility payments to help support an individual who has lost their livelihood from COVID-19. Another way to think of bang for buck is to compare costs with societal benefits: $30 in societal benefits for every $1 spent on effective crime-reduction programs. That’s bang for buck thinking where the “buck” is the money a nonprofit has to spend and the “bang” is what it’s able to achieve with that money.
By focusing on the goal, doing a little research, and thinking bang for buck, donors can make sure their annual giving reflects more than generosity and good intentions.