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Grantmaking is a specialised skill. As strange as it may sound, giving money away can be hard to do. It requires good knowledge of the community, for example, what the community needs are, who is doing what and which initiatives are likely to have the most impact. It can also be helpful to know or network with other funders to learn from their experience.
Using an expert can help to maximise the effectiveness of your giving and lessen the stress that can be involved with a perpetual gift. It can be helpful to have access to research, networks, and organisations, or people that can help you develop and evaluate your giving strategy.
There is no such thing as a good or bad cause. Giving to an area or issue you are passionate about can often be most rewarding. In deciding what to give to, it might help to consider the following :
- Causes or people you wish to benefit from your giving.
- Issues you feel most strongly about.
- Charities you have supported in the past.
- A need you want to address.
You can give at any time, either during your lifetime or through your Will. Giving during your lifetime means you can personally appreciate the benefits your gifts make to others, and it gives you the opportunity to be personally involved.
Donations made while still alive can be tax deductible, with deductions able to be spread over five years. Charitable foundations are exempt from paying tax on their income.
Where you may not wish to establish your own foundation, you can always make a tax-deductible donation to an existing tax deductible charitable foundation that supports causes you have an affinity with.
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