Three Questions for More Strategic Giving
If you had to give away a million dollars in the next 12 months, how would you do it?
No, really. Pause and picture this. How would you go about giving away a million dollars in the next year?
Would you scatter donations wherever requests came in? Or would you take time to think carefully and create a plan?
We often ask this “million-dollar question” to new prospective clients. It’s amazing to watch people light up as they imagine the intentional impact they could have.
If you’d plan for a hypothetical amount, why not plan for the real dollars you’re giving away now?
Why most people don’t have a giving strategy
Consider Jake and Kate (names changed for privacy). Their approach was what I call “scattershot giving,” sending checks whenever someone asked. Their pattern looked like this: $1,000 here for a charity appeal, another $1,000 for a friend’s fundraiser dinner, $2,000 for a local mission they loved.
Over time, they gave away tens of thousands of dollars. Despite this, their giving was unsatisfying. Donations were reactive and fragmented. They couldn’t see the difference they were making.
Making the shift towards intentionality
Jake and Kate wanted more than random donations. They wanted their giving to make a lasting impact. They also wanted to model generosity for their three high-school-aged kids. So they created a plan. Today, they feel energized about the difference they’re making.
If you’ve been giving on autopilot but want to be more intentional, here are three questions to guide you:
1. How much do you want to give this year?
Most people start by listing causes or organizations. But a strong giving plan begins with a number. Ask: How much do we hope to give this year?
Setting a total helps you move from reactive to purposeful. Many people use 10% of income as a starting point (the national average is only 2%). But if you can give more, don’t let that guideline hold you back. If you set big goals in other areas of life, why not set a big goal for generosity?
Jake and Kate together earn $500,000 annually. After prayerful consideration and working with their financial planner, they committed to giving $100,000 this year. Their planner helped them contribute assets through a family Giving Fund (a Donor-Advised Fund) in a way that maximized tax benefits. While tax savings weren’t their motivation, they didn’t want to leave any advantages unused.
2. Where do you want to make an impact?
Once you know your total, think about how to allocate it. Just as you budget for groceries and utilities, divide your giving among priorities that matter most to you.
Here’s one example—not a rule, just a framework to spark ideas:
- 50% Passion Giving: Causes you feel deeply called to support.
- 30% Community Giving: Local organizations and initiatives you value.
- 20% Flexible Giving: A reserve for unexpected needs—like disaster relief or a last-minute mission trip.
Jake and Kate were most passionate about addressing homelessness, so their plan looked like this:
Passion Giving ($50,000):
- $20,000 to address symptoms (in their case, an emergency shelter for families)
- $15,000 to address systemic roots (a mental health nonprofit working with individuals at risk of losing their homes)
- $10,000 to associated mercy projects (such as a job-training nonprofit)
- $5,000 to cutting edge approaches (such as a transitional housing program for new moms)
Community Giving ($30,000):
- $15,000 to their church
- $10,000 to the private school where Kate serves on the board
- $3,500 to their alma mater for a building project
- $1,500 for their three kids to give away during the holidays
Flexible Giving ($20,000):
- $10,000 to friends’ favorite charities at banquets and fundraisers
- $7,500 in response to appeals from nonprofits they’ve supported before
$2,500 anonymously to a struggling family at church
3. How will you know if your giving is effective?
Schedule regular giving reviews to stay intentional. These check-ins help you confirm that you’re giving generously and according to plan. Put them on the calendar now, before life gets busy. You might even ask your financial advisor to help keep you accountable.
Reviews should include both spouses, and possibly older children or even grandparents. These conversations teach the next generation about generosity and the value of money.
At each review, look back and plan ahead. Here’s a quick checklist:
For past gifts:
- What impact did your gifts have?
- What went well? What didn’t?
- Anything to do differently?
For future giving:
- How much have you given so far? What’s left?
- Any new causes or requests to consider?
- Do you need to adjust your plan based on life changes?
Jake and Kate scheduled reviews for March, June, September, and December. Even when life got busy, they honored those commitments. By year’s end, their alma mater had broken ground on a new building, nearly 50 single parents had received job training, and a struggling family was back on their feet. Most importantly, their whole family could see the impact of generosity.
Ready to move toward strategic giving? Your plan may look different, but asking these three questions will help you become more intentional.
We at Sound Stewardship would love to help you build a plan for generosity. Contact us to get started.
