Giving Tuesday is a global day of giving with a goal to unleash the power of radical generosity. According to Giving Tuesday Inc, $2.47 billion was donated on December 1, 2020, by 34.8 million people, just in the United States alone. Many of our clients have been giving generously to their beloved charities for years. However, if you know someone looking to make a difference or newly in a position to be philanthropic, consider sharing this step-by-step article with them. There are many ways to get involved this Giving Tuesday - here are some ideas!

Did you know that 90 percent of high net-worth households give to charity according to the National Philanthropic Trust? It’s an impactful way to ensure your wealth goes to good use. Nonprofit and charitable organizations are fueled by individuals who support their services. Currently, there are about 1.54 million charitable organizations in the U.S., and in 2019, 69 percent of charitable giving came from individuals.

In our first post in this series on living with wealth, we discussed giving to family. [Link to blog when posted] In this post, we concentrate on charitable giving. Outside of playing a pivotal role in helping a nonprofit organization thrive, charitable giving boasts a number of benefits for donors. Making a donation to a qualified 501(c)(3) makes you eligible for tax deductions, and giving a considerable amount can benefit your overall estate planning.

Take a closer look at how you can position yourself for sustainable charitable giving and, in addition, leave an enduring legacy after your death.

Nonprofit organizations rely on the generosity of donors for their sustainability, allowing them to solve real-world problems for those who need help. They often receive financial support from the government, private entities and philanthropic organizations, but the majority of giving comes from individual donors. Donating to these organizations allows people to pay their wealth forward. To make them even more successful in serving one of the four basic missions, financial advisors for nonprofits, like Carnegie Investment Counsel, can help.

A podcast episode of Business Made Simple (titled “Vik Harrison -- What You Really Need to Grow Your Nonprofit”) breaks down the four different categories of nonprofits, based on their mission. Hosts Koula Callahan and Dr. J.J. Peterson discusses how nonprofit organizations should approach their development the same way for-profit companies do via marketing and messaging. Vik Harrison, founder of Charity Water, advises how nonprofits can shift their thinking this way. Both Peterson and Callahan are part of StoryBrand, a marketing consultant company that helps brands and businesses clarify and transform their messaging. 

In the Business Made Simple episode, Peterson and Callahan use the following quote as a frame of reference for describing the four different nonprofits: “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” Here’s how each of those organizations differs from one another.

A spending policy statement (SPS) is crucial for nonprofits to ensure their funds are being spent in a way that benefits their mission, pleases their donors and adheres to legal policies. I see this firsthand as I serve as an investment committee member for my church. We meet quarterly to make investment decisions for the endowment and scholarship funds. As a Senior Portfolio Manager at Carnegie Investment Counsel’s Cleveland location, I am happy to share more information on improving a nonprofit spending policy.