Why Every Generous Person Needs a Giving Plan (& How to Build One)
If you are reading this article, you are probably someone who cares about making a difference…
Whether it’s through your church, a nonprofit, or helping a neighbor in need – generosity is part of who you are. But without a plan, you will likely end up giving reactively—only responding to spontaneous requests, emotional appeals, or repetitive commitments. You may even give money only to later realize you needed it for bills. This can leave you wondering if you’re stewarding your resources well and making the impact you desire.
On the other side, when you say “no” to opportunities, the absence of a plan can leave you feeling guilty or unsettled. Not to mention the circulating misinformation about the effect giving will or won’t have on your annual tax return.
If any of this resonates with you, I have good news….setting up a personalized charitable giving plan brings your generosity to life in an intentional way that puts you confidently back in the drivers seat. And you don’t have to figure it out alone.
What Is a Giving Plan?
A giving plan is simply a roadmap for your generosity. It outlines where, when, and how you want to give in alignment with your values, financial goals, and impact vision. Just like you wouldn’t build a retirement plan without thoughtful foresight and strategy, you don’t want to leave your generosity up to chance. Your giving plan will be most effective when it works alongside your monthly budgeting process.
Why It Matters
Intentionality – A plan ensures your giving reflects what matters most to you, not just what feels most urgent in the moment.
Peace of Mind – You’ll give freely without worrying if you can afford the gift.
Tax Efficiency – Strategic tools like donor-advised funds (DAFs), appreciated stock gifting, or qualified charitable distributions (QCDs) can save taxes and make your dollars to go further.
Impact – By focusing your generosity, you can move the needle in a meaningful way instead of scattering smaller gifts without purpose or direction.
“Generosity isn’t just about writing checks. It’s a reflection of your heart, your priorities, and your vision for the world.”
Four Steps to Build Your Plan
1. Clarify Your Values
Ask yourself: What causes stir my heart? Is it faith-based work, education, poverty relief, or environmental stewardship? Narrowing down your top three values gives you a filter for saying “yes” or “not this time” when requests come your way.
Practical tip: Create a “giving mission statement” in a sentence or two. Example: “Our family supports causes that strengthen local churches, provide opportunities for children, and empower families to thrive.” This keeps you anchored when new opportunities arise and allows you to avoid feeling guilty when offers come that may be good, but don’t align with your primary mission.
2. Set a Giving Goal
Decide on a percentage or dollar amount of your income to dedicate to generosity each year. Some people choose 10%, others start smaller and grow as their capacity increases. We think once you set targets, you will have fun trying to exceed expectations and even become addicted to generosity.
Practical tip: Automate your giving. Just like a retirement contribution, schedule recurring gifts to your desired church or favorite nonprofits/causes. This turns good intentions into consistent action.
3. Choose Vehicles for Giving
Cash is certainly the most common form of gift, but it’s not often the most efficient. Explore:
Donor-Advised Funds (DAFs): Great for bundling gifts to have a better chance of itemizing on your return and receiving an immediate tax deduction. You can then still give grants to charities over time when you are ready.
Appreciated Assets: Donating stocks or real estate can avoid capital gains tax while still counting as a charitable gift.
Qualified Charitable Distributions (QCDs): For those over 70½, giving directly from an IRA can satisfy required minimum distributions (RMDs) and reduce your pool of money that would eventually cost you income taxes.
Legacy Gifts: Including nonprofits in your will or trust extends your impact beyond your lifetime and can help reduce your gross estate if you are higher net worth.
Charitable Trusts: A part of savvy estate planning, this can help ensure that your heirs get taken care of and your charitable wishes get fulfilled all in one vehicle while providing estate tax reduction for high net worth households.
Giving Circles: Join like-minded people or groups to increase your impact as a collective
Note – After the recent passage of the OBBBA tax law, in 2026 cash gifts to charities of $1,000 per individual ($2,000 per married couple) will get a tax deduction on top of the usual standard deduction. Cash gifts up to this amount may carry more value than they have in the past. Check with your tax advisor or financial advisor to craft a personalized strategy for your situation.
Practical tip: Spontaneous generosity can still be one of the most joyful forms. Consider setting aside what we call a “RAK fund” (random acts of kindness)—a small portion of your giving budget for spontaneous generosity. This way, you can still respond to a neighbor in need or a fundraiser at your child’s school without derailing your overall plan.
4. Track and Review
Generosity shouldn’t be set on autopilot forever. Create a simple system to track your giving—an Excel sheet, app, or even a journal. Then review annually: Are your gifts still aligned with your values? Did your financial situation change? Do you want to increase or shift focus?
Practical tip: Involve your family. Share with your kids or spouse which causes you’re supporting and why. This not only strengthens family connection but also models generosity for the next generation. DAFs can also be passed on to future generations and the funds must be used for charitable causes. Those causes get to be determined by the heir, passing on a structured legacy of generosity.
Final Thought
Generosity isn’t just about writing checks. It’s a reflection of your heart, your priorities, and your vision for the world. When you build a giving plan, you bring clarity, confidence, and joy to that reflection. You’ll start mixing spontaneous giving with an overarching proactive approach—creating lasting impact for the people and causes you care about most.
Take Action - We love helping generous people give with clarity and confidence. Together, we can ensure your generosity makes the biggest impact possible—today and for generations to come. If you are in the Charlotte NC area and ready to align your generosity with a solid financial plan - our team is ready to help.
