In the last article we explored some of the operating frameworks behind philanthropists and we saw that one size does not fit all. This is worth repeating:

One size does not fit all philanthropists. One size does not fit all grant amounts. One size does not fit all grant types.

Rarely does one size really fit anyone, anywhere - not in clothing, not in parenting, not in life.

How do Philanthropists Decide how much to Give?

In the last article we explored the idea that grant makers are tasked with stewarding their own resources. Almost all grant makers have a budget! Many have a set pool of funds to divvy out by calendar year:

• This amount can be influenced by profitability in the for-profit sector (for philanthropists connected to a business) because when the business does well, there is more money to give.

• Private foundations, on the other hand, have a 5% payout requirement annually (it’s a little more complicated than that), serving as a guidepost for giving. They are free to give more, but if they want to operate in perpetuity, they will often balance giving with investments so that granting funds can be nearly replenished annually.

• Individual givers may have a set or ballpark figure set aside in their bank account or Donor Advised Fund. Givers work with their financial planner to decide how much to give. (Check out Kingdom Advisors if you are looking for a financial advisor who can help with purposeful giving).

The point is, money is not limitless! As stewards of money, givers vet their giving prospects, collecting information needed to help them choose the right donation, for their priorities, for the right amount of money.

Right-Sizing Philanthropy Based on Contributor Type

This is part of a larger conversation touching on giving scale, timeframe, and expertise (more on this another day!) but identifying what type of philanthropist you are is a good starting point.

Read the rest of the article here.