5 Steps For Effective Philanthropy During Times of Crisis

If you are someone with a successful business or high income right now who has weathered well, or even prospered, during the COVID-19 pandemic and you have a desire to do good in our world, then this is an important article to read.

It’s almost a cliche to say it, but it’s the truth. Due to the COVID-19 pandemic North America, and much of the world, is facing a crisis. There are a record number of businesses filing bankruptcies, unprecedented waves of evictions are being reported, mass layoffs are happening, and small businesses who weren’t positioned well for the pandemic are facing difficult times, largely due to no fault of their own, to say the least.

The same is occurring to nonprofits and other charities. And this is causing even further social disruption among the communities they support, from mental health to education to arts & culture, and beyond. But with promising vaccine results and shifts in culture, there is real hope.

“‘When you focus on the good, the good becomes better.” — Abraham Hicks

If you’re not sure what you can do to help, or you don’t realize yet the personal benefits of altruism (even when the most “selfish” motives are at play), here are five steps to get you started on maximizing the good you can do with your funds right now.

1. Pause

Do a gut check. Consider what your community and the world needs more of right now. Research experts on the topics. See what movements are making real impact. Don’t act without a plan.

2. Convert restricted funds to general operating

Give those with expert knowledge in impact and data-driven nonprofits the flexibility they need. Remember, philanthropy is not about making you feel good or look good. It’s about doing the most good to all.

3. Free up new funding for immediate need responses

If you have grantees or you already donate generously and consistently, see what they urgently need right now. Make the process as smooth and easy for them to act as you would a key client or power executive.

4. Support the Research and connect personally

While it may not be the most “sexy” way to give, ask charities where their data and research comes from, and make sure that “funnel” is filled. This will allow a wider distribution of information for others to make better decisions, thus maximizing the good. Remember, there are experts you can trust for nearly any cause where the good you can do is scalable, neglected, and solvable/tractable.

5. Be open to making strategic shifts

As you support and learn, know that you will need to be open to new strategies and tactics, and this is a good thing. Don’t be uncomfortable just because you’re not the expert. A good place to start may be Effective Altruism, which has growing chapters around the world, and vetted metafunds: Using reason and evidence to do the most good — Effective Altruism.

Hopefully, this is helpful to you in terms of thinking about effective philanthropy during a crisis. Don’t underestimate the good that even a little help can bring.

Now, if you’re not 100% how to do this in the most tax efficient way or what might be the most effective professionally managed charitable metafunds in need right now (yes, there are many), consider taking advantage of a no risk 30 minute Strategy Session with David Sigrist.

His team can review your business and personal net worth, analyze your cash flow, and present a plan for a giving pledge you can engage in, all while making sure any other financial goals you have are achieved.

PS: Just in case you skipped reading the whole article (yeah, I do that sometimes….), here’s a summary: Philanthropy is needed right now more than ever in recent decades. However, many with means to give aren’t 100% of the most tax efficient way to give or haven’t learned about the most effective, professionally managed giving metafunds there are to maximize the good they can do. I provide high level steps to execute on this for high net worth individuals and business executives.

To help you do this I am offering a 30 minute Strategy Session for those wanting a free, no risk professional consultation. Register for your session, or email me at david.sigrist@ig.ca for more information.