Giving Mechanisms

There are multiple options in terms of the vehicle or structure used for giving. The choice made will depend on a number of considerations. The key thing is to get proper tax and legal advice so that the tax obligations are clear and there is a shared understanding of the limits placed on the philanthropist by the various legal structures.

Also, some banks and other professionals provide good, bespoke advice on structuring philanthropic giving.

Approaches to Giving

The philanthropist could choose to keep things really simple (but possibly not very tax efficient) and make donations in her own name to various causes that align with her values. 

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Differences between Operating Foundations and Non-Operating (Grant-Making Foundations)

Are you creating an operating foundation, purely grant making, or a mix of both? Are you donating to new or existing organizations? Essentially, the question here is – who will you support?

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The Grant-Making Process

There are a wide variety of options for how to give and the choice the philanthropist makes will be guided by her values, experience and circumstances. The key point is that not all giving makes the world a better place.

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Key Principles of Grant-Making

Establish certain general rules or principles that apply to the grants. These principles are typically guided by the donors values and style of philanthropy.

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Things to Note When Supporting a Cause

  • Government policies and objectives about the issue
  • The current state of the issue in the country/ region/ area of interest

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Developing an Application Process

Arguably all donors have some sort of application criteria against which they evaluate and select applications but some donors choose not to write them down, relying on a more flexible approach to initiating the grant relationship.

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Conditions of Grant-Making

Grants are often approved with conditions. These can be conditions relating to the timing of the funding, the ability of the organisation to raise matched funding or any other conditions precedent that are required before funding is released.

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Related Links

Why Give?

Why Give?

Giving Approaches
The Process of Giving

Related Links

Why Give?

Why Give?

Giving Approaches
The Process of Giving

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