Why Strategic Philanthropy Matters

Most of us would never dream of leaving our money unmanaged. If you are among the 61% of Americans who hold an investment or retirement account, you already plan carefully for your financial future. (Congratulations by the way!) You utilize advisors, accountants, and planning tools to make sure your money grows.

Yet when it comes to philanthropy, many people take the opposite approach. Research shows that the majority of donors give reactively, in response to a request, a crisis, or a friend’s invitation. Only about 1/3 give strategically, aligning their philanthropy with values, long-term goals, and legacy planning (1,2). Imagine if you only invested when asked directly, rather than taking part in a thoughtful discovery process and aligning decisions with your goals. That is how most people give.

Strategic philanthropy begins with values. It asks: What matters most to you and your family? How do you want those values to shape your legacy? From there, it becomes possible to create a giving roadmap that is intentional, structured, and lasting.

The benefits extend well beyond tax efficiency. Studies show that giving and volunteering not only strengthen communities but also improve personal well-being. The Lilly Family School of Philanthropy has documented the “happiness effect” of charitable giving (1), and research published in the Journal of Economic Psychology found that individuals who regularly support causes experience higher life satisfaction and lower stress (3). At the same time, wealth studies caution that leaving large, unstructured inheritances can create conflict, entitlement, and poor financial habits among heirs (2,4).

This is why it matters to bring philanthropy into the broader wealth conversation. When giving is integrated with financial, estate, and tax strategies, it can protect assets, reduce taxable income, and most importantly craft a legacy that reflects not just what you earned, but what you stood for.

At Jonesing for Good, we collaborate with financial and legal teams to help clients design giving strategies as intentional as their investment strategies. Money is a tool. Values build legacies. The question is whether your wealth plan reflects both.

References

1.     Lilly Family School of Philanthropy – Charitable Giving Reports

2.     Bank of America – Study of Philanthropy

3.     Journal of Economic Psychology – Well-being and Charitable Giving

4.     Giving USA 2024 Highlights