How to plan your charitable New Year’s resolutions

The beginning of a new year is traditionally a time for deep reflection and committed action. That’s why so many of us use the first days in January to forge New Year’s resolutions. 

Unfortunately, most New Year’s resolutions are dropped within the first few weeks of the year. No matter how noble the goal, motivation simply isn’t enough to power people through the entire year. 

If your resolution is to give more and give strategically this year to achieve your financial goals, it’s time to develop a methodology for your giving. With a comprehensive plan in place, you’ll be fully prepared for a whole year of giving. Answer the questions below so that you can clear the path ahead to an improved plan of this year’s giving. 

Why do you give? 

Specificity is key to any plan. Get to know the goals behind your giving and pinpoint what drives your generosity. By keeping your core motivations at the forefront, you’re more likely to stick to your goals. 

Here are some questions to get you started: 

• What cause areas are most important to me? 
• What values do I want my giving to embody? 
• Where geographically do I want my giving to go? 
• Are there any population groups or specific demographics that I want to support with my giving? 

How do you prefer to give? 

Knowing how you give is as important as knowing where and why to give. By understanding your approach to philanthropy and perhaps how it’s changed since you first started, you can set goals that will best fit your unique giving style. 

When you’re aware of how you like to give, you can better prepare for what will make you most comfortable with your giving. For example, you could partner more closely with a nonprofit this year to better understand the impact your dollars are making. Or, perhaps you’re someone who wants to get the most tax benefits of giving, in which case you should check in with your financial advisor to feel confident in your giving targets. 

Reflect on what giving experiences brought you the most satisfaction and why. How can you replicate those approaches to giving? The more you enjoy doing something, the more likely you are to keep doing it! 

What are your key objectives? 

What do you want your charitable accomplishment of the year to be? You don’t have to tell anyone, but you should know it for yourself. 

When you have a clear goal, you know what you’re striving for. The more specific the goal, the greater the likelihood of success. 

Perhaps you have a goal of gifting a percentage of your wealth or income, of giving a certain amount to your favorite charity, or expanding your list of charities that address the causes you care about. 

Once you have your goal set, write it down as writing your goal is shown to help you accomplish it. 

Get excited for the giving ahead 

With the why, how, and what of your giving identified, you have a clear image of what you can accomplish in the new year. 

As you’re reviewing your plan for this year of giving, consider if you have everything you need to be successful as a donor. If you’re still making one-time, direct donations, you may not be maximizing your giving potential. That’s where Vanguard Charitable can help. 

At Vanguard Charitable, we are committed to helping donors achieve their giving goals by maximizing philanthropy with donor-advised funds (DAFs). If you’re ready to make this year you’re most charitable yet, we’re here to help. 

Learn more about how a DAF can support your wealth management strategy to make this year your most effective and charitable yet.