Your family may be among those who are taking their charitable giving budgets more seriously this year, given the stock market’s challenges, rising interest rates, and economic concerns.  

At the same time, those same challenges and others are putting pressure on nonprofits serving vulnerable populations; they need even more support to meet the demands.  

As 2023 gets into full swing, we have some tips for being intentional about your philanthropy by building a budget and taking a year-long approach to giving. 

Build a budget 

Planning and budgeting is a great way to create more intentionality around your giving. Intentional giving is not only more rewarding for you but is also likely to increase your level of engagement with the recipient organizations and enhance your understanding of how dollars are being deployed to meet the mission. This, in turn, helps your favorite organizations get better at carrying out their programs and serving those who rely on their work.  

• Review your charitable gifts and grants from the last three years. To review activity on your NCCF charitable fund(s), visit our Online Fund Portal or request this information from your donor engagement officer. Don’t forget to include other charitable contributions made directly to nonprofit organizations as part of your three-year review. 

• Assess the list of organizations you’ve supported. Which are the most important to you? Are there organizations you supported but don’t feel particularly passionate about? Are there organizations you’ve supported that you’d like to learn more about? Is there a cause you’d like to support but don’t know the nonprofits that address that need?  The NCCF team brings local knowledge and statewide expertise on nonprofits and would be happy to provide information about organizations or causes that interest you.

• Average your total giving over the last three years. Is that amount doable this year? Remember to consider the value of publicly traded stock gifts you could make this year if preserving cash is a priority.  

• Set targets for the amount you’d like to provide to each organization—and perhaps even set targets for the timing of your gifts. You can change these targets at any time.  

Benefits of a year-long approach to giving  

 As compelling as year-end charitable giving and grantmaking may be, there are numerous benefits of a year-long strategy. These include: 

• Making grants in the first quarter of the year to help nonprofits meet their budgets earlier and to prevent concern about whether ongoing needs can be addressed.

• Leveraging employer matching gifts programs early in the year when there is plenty of time to process paperwork. 

• Being proactive, not reactive, in supporting the causes you love. You might even consider setting up automatic contributions to your donor-advised or other type of fund at the foundation by working with your financial advisor to formalize this as part of your ongoing plan. 

• Making time to learn more about the charities you plan to support so that you can be an even more informed and impactful donor, utilizing our team’s expertise and resources.

• Including children and grandchildren in the charitable giving conversation as a learning experience for the whole family. 

• Avoiding the December scramble to process a Qualified Charitable Distribution (QCD) if you are over 70½ from your IRA directly to an eligible charity or fund (DAFs excluded) by executing a QCD in the first quarter. 

• Leaving enough time to explore options for more complex giving tools that might provide tax benefits as well as meet your charitable goals. Rather than waiting, set an appointment with your attorney, financial advisor, and accountant to map out the best strategy for your situation. 

 As always, the NCCF team is here to help. Please reach out to learn more about how you can make the biggest difference with your charitable dollars, including how you can use an existing or new donor-advised fund, or other type of fund, to carry out your 2023 charitable wishes.