Mary Spencer: What an emerging philanthropist needs to know

Mary Spencer: What an emerging philanthropist needs to know


For some, stepping into the world of philanthropy is an easy transition because of their upbringing and financial position. For others, it is entering a whole new realm.

But no matter how you begin your philanthropic journey, you have one thing in common with other philanthropists — the desire to create a true impact in the world. And that’s a great thing.

Whether you start big or small, becoming philanthropic can be complex when it comes to why and where to donate your funds. First, with all the challenges the world and our communities face — poverty, environmental concerns, lack of educational and health resources — choices of where to give can be overwhelming. This is why it’s so important to create a strategy so you feel you are truly making a difference.

When developing a plan to give, emerging philanthropists have several things to consider before making commitments to causes.

First, it’s important to determine your motivation for giving. Ask yourself what you are passionate about — what are your values and your hopes for the future? Are there causes that resonate with those values and hopes? Are there causes that affect you personally?

What are your hobbies? Do you love to fish, hike, create art, organize projects and events, learn new things or dance? Where do you find the most joy — when you spend time outdoors? When you create something? When you spend time with children or the elderly? The answers to these questions can help lead you to a specific passion or cause and from there, you can look at giving options.

After you determine the cause you want to support, you might want to conduct some research. To contribute in the most informed way, immerse yourself in the topic to discover needs.

For example, if you wish to learn about the needs in Anne Arundel County, you could turn to the Community Foundation of Anne Arundel County’s (CFAAC) Community Needs Assessment Report: Poverty Amidst Plenty, a report that is published every three years.

Then you will need to determine which nonprofits support your cause so you know where to direct your funds. It’s important to research the nonprofits to make sure they are in good standing.

A reliable place to explore is guidestar.org, where you can look up a nonprofit’s 501(c)(3) status, search 990s, find out about its mission, impact, programs and more. You can also support a CFAAC Field of Interest Fund that combines your giving with other donors to make a larger impact in certain interest areas such as arts and culture, the environment, education and more.

In addition, you can establish a Donor Advised Fund with CFAAC and direct the funds to the causes that mean the most to you. In both cases, CFAAC conducts the research for you, as well as consistently examining a nonprofit’s status and standing. There are many options when it comes to giving through CFAAC.

It’s equally important that you look at where and how to give when donating to a nonprofit. Do you want to be an annual or monthly donor? Is there a particular program you would like to see funded or developed? Or do you want to give to the nonprofit with unrestricted support so it can use the funds for its most-pressing needs?

Unrestricted funding or general operating support is crucial to help nonprofits grow. Restricting a nonprofit’s use of funds within a specific timeframe or for a particular program can limit its flexibility and adaptability.

Nonprofits need the ability to change and grow with the community they support and its needs. Giving unrestricted donations is always a great way to give, especially if you are just starting your philanthropic journey.

Finally, an emerging philanthropist might need to learn to embrace patience as well as uncertainty. For tough social challenges, establishing cause, effect and solutions can be complex. And sometimes measuring immediate impact is difficult.

Consider if you’re willing to donate where you can measure overall impact over time. Remember, it can take years to implement major ideas and change.

No matter how and when you enter your philanthropic journey, CFAAC would be happy to answer your questions and guide your giving. Please contact us at 410-480-1102 or info@cfaac.org.

The Community Foundation of Anne Arundel County (CFAAC) is a tax-exempt, 501(c)(3), publicly supported philanthropic organization with the long-term goal of building permanent funds that provide support to local nonprofit organizations through grants and special projects. Our mission is to inspire and promote giving in Anne Arundel County by connecting people who care with causes that matter. Established in 1998, CFAAC is one of the largest funders of nonprofit organizations in Anne Arundel County. CFAAC distributes $5 to $7 million annually.



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