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One Donor’s Giving Strategy

Medium Nov 25, 2020
This article is deemed a must-read by one or more of our expert collaborators.
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One Donor's Giving Strategy Giving Compass
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Giving Compass' Take:

• Kathy Kwan explains her giving strategy and the reasoning behind her approach to help other donors develop their own strategy.

• Could any of the elements listed here improve your approach to giving? Are you ready to make a long-term commitment to an organization multiple or organizations?

• Learn more about the benefits of multiyear general operating support.


Plan before you give. Create a working budget. I use annual and multi-year spending targets to answer three questions: (1) How much do I want to grant? (2) How much am I giving to any one organization or initiative? (3) For this time period, how close am I to meeting the target? By embracing this mindset, I hold myself accountable to spend my charitable dollars, as well as set priorities and weigh the tradeoffs of new opportunities.

Pick a few causes to support. To achieve impact, I have found a clear, narrow focus works better than spreading my money across multiple issues and topics. Focus can be created using many dimensions: geography, socio-economic status, topic, age, issue, institution, type of grant, etc.

Create a definition of success for each grant opportunity. I am a results-oriented person, who generally needs to know where I’m going and what I hope to achieve. (I should acknowledge that this approach may not be right for everyone.) To the extent possible, I internally have a reason for funding that includes why I might extend the grant and what I hope to achieve as a result of providing the dollars. This internal statement is informed by what my grantees can realistically achieve in the agreed-upon timeframe.

“Right-size each grant” knowing that larger grants work better. In general, when I am focused on impact, I grant between $50K-100K per organization. For most organizations, this enables them to start an initiative or hire a person to help start the work.

Where appropriate, give large, renewable, multi-year grants.

Read the full article about one donor’s giving strategy by Kathy Kwan at Medium.

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Interested in learning more about Impact Philanthropy? Other readers at Giving Compass found the following articles helpful for impact giving related to Impact Philanthropy.

  • This article is deemed a must-read by one or more of our expert collaborators.
    Click here for more.
    How Funders Can Get Better at Getting Better

    Giving Compass' Take: •  Lowell Weiss argues that the most effective funders listen to the people they give to. • Where are you on your giving journey? How can you implement better listening skills?  • Learn about giving tips for new and experienced donors.  Shortly after I finished working as a White House speechwriter for Bill Clinton, I decided to join the philanthropic sector. I was thoroughly burned out on politics. I felt that 80 percent of my 80-hour weeks were consumed by partisan food fights. I wanted a job that would give me a chance to create more light—that is, more helping, healing, and improving. Twenty years later, I’m grateful I made the switch. In a country with enormous and growing social and environmental challenges, we are very lucky to have such a robust philanthropic sector to help drive change—whether it’s in the form of better schools, improved health outcomes, a more informed civic discourse, or faster energy innovation. And yet I’ve come to see that there’s plenty of waste in the philanthropic sector, too. It usually doesn’t come from ideological battles. Instead, it comes in the form of underperformance. Governments receive constant feedback from constituents in the form of calls, emails, visits, polling, and votes. For-profit companies solicit feedback from their customers in many ways—from focus groups to surveys to sales. Philanthropy, in contrast, has “no built-in systemic forces to motivate continuous improvement,” in the words of philanthropy giants Joel Fleishman and Tom Tierney. Consider a recent unpublished regression analysis produced by the nonprofit Center for Effective Philanthropy. Looking across tens of thousands of data points from 15 years of grantee surveys, CEP discovered that, on the whole, foundations are not improving in the eyes of their grantees. Read the full article about becoming a better donor by Lowell Weiss at Washington Monthly.


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