Grounding your giving in times of crisis: 6 questions to intentionality
This is the second part of a two-part blog, please read our previous post titled “Grounding your giving in times of crisis: Three steps for keeping your head above water,” we suggest that you take a look before continuing on with this post.
In the latter half of 2020 and for most of 2021, many of the donors, foundations, and giving groups that we work with have increased their giving – and are getting the money out faster. Throughout, we have found that everyone is grappling with six key questions – and that intentionally and thoughtfully answering these questions is essential for effective giving in this time of crisis. Importantly, these really are questions for you – not recommendations disguised as questions. We do not have the answers to your giving during times of crisis. However, we believe that if you take the time to reflect deeply and develop thoughtful, well-reasoned answers to these questions, you will be better positioned to navigate the ever-changing conditions of the moment, make better decisions, and give more effectively.
Before answering these questions, we suggest that you take a look at our last post titled “Grounding your giving during times of crisis: Keeping your head above water” for three initial steps to build your foundation of intentionality. There are numerous “good” and “sensible” answers to these questions, but how you answer these questions – with thoughtfulness, honesty, and intentionality – is the most important thing you can do to be an effective giver in the current moment.
1. How do you balance your giving between the needs of individual people and families vs. organizational appeals?
Individuals and families are facing unprecedented challenges and hardship. In the past nearly 2 years, more than 23 million Americans have filed for unemployment benefits, and the U.S. unemployment rate reached 14.8 percent, the worst since the Great Depression. For the foreseeable future, millions of individuals and families will struggle and hundreds of thousands will be in extreme need. You likely already know someone that fits this description. At the same time, the organizations we support and care about have been upended – some devasted. The cascading economic impact crises both weaken our organizations – financially, programmatically, etc. – while simultaneously increasing the importance of and need for their work and services. For example, in relation to the COVID-19 pandemic, this crisis is a literal existential crisis for many groups and organizations – they are fighting to keep the doors open and staving off extinction.
While the scale and nature of responding to individual needs vs. organizational appeals vary, they are both vital. Moreover, thinking through how to balance your giving between the individuals and organizations we care about is difficult, but essential. To get started, take stock and check in with individuals and organizations you’re connected with. Who is struggling? Who has extreme needs? Once you have a sense of the needs in your circle, try to assign buckets for your giving in a way that you feel is commensurate with the need. For example, if you think the needs of your network are fairly commensurate, you could divide your giving into three buckets: one for individuals/families, one for organizations that you’ve been a long-time supporter of, and one an issue area or cause you feel is particularly salient (e.g., policy and advocacy work, given the upcoming election). Giving priorities shift during a crisis, for advice on developing your annual giving strategy, read our post on the 50/30/20 rule here.
Another important consideration in answering this question is appreciating the different ways that you can give. For friends and family members in need, this may amount to cutting a check directly to them. However, you may have investments or assets that you can leverage in the current moment that can also make an impact. For example, if you own rental properties, you might consider deferring your tenants’ payments for as long as you can. If you have a surplus of in-demand items, such as toilet paper, hand sanitizer, etc., consider giving those resources to friends or family members that are more vulnerable and in need.
2. Should you give directly to individuals/organizations or through a fund?
Giving effectively in times of crisis requires urgency. But, if you want to work fast, you have to rely on the expertise of others – and community-level individuals and organizations know best what their critical needs and issues are. Giving through funds is one practice that taps into the expertise of others, because they are often organized by community-level individuals, organizations, and stakeholders. A great example of this are the many funds that have been established in response to the COVID-19 pandemic and many existing and a handful of powerful, newly established funds and organizations focused on civil rights and advocacy are doing great work during these times of crisis -- and there are likely some organizations making a great impact right in your own community. If you want to give directly to organizations, it is best to give to organizations you already know and are in conversation with. This familiarity and trust reduces the need for due diligence and vetting you might otherwise conduct when making a gift, allowing you to act more swiftly when need is the highest.
3. How do you balance short-term and long-term needs? Should we give now or hold some for later?
Giving effectively during a crisis requires balancing short-term and long-term needs. To do so, we need to appreciate the current state of the crisis and how our communities and organizations are being affected. Some questions to consider are: What are short-term critical needs, and how much help is needed? How is government responding? How are businesses responding?
The impacts of COVID-19 and the strain placed on the country by the shifting political landscape will reverberate for the foreseeable future – and determining how much you can give and when requires assessing what needs are immediate (now and in the coming weeks), short-term (in the coming months), and long-term (in a year or more). It is important to remember that the effects of crises last long after the sensation of the crisis itself. Many focus on the immediate and short-term needs of their communities but neglect to think about the long-term support that their community may need after the headlines have died down.
4. How much should you prioritize sustaining “your” organizations?
We are all connected to organizations we care deeply about, through board service, historical relationships, etc. – and we often think of them as our organizations. During this crisis, are you helping sustain “your” organizations? As mentioned earlier, many organizations are facing existential crises. Keeping these organizations alive through crisis is one of the best ways to ensure that your giving – both in the past and future – is not in vain. Helping your organizations sustain and carry on their work is just as essential as funding the new, important movements.
5. How do you determine the right amount to give when faced with economic volatility and rising need?
Markets are volatile, portfolios are down, and wealth has contracted. However, for those in positions to give in times of crisis, it’s important to recognize and appreciate that, despite our investments going down, this has not substantively changed our day-to-day lived experiences. So, in the face of these changes, it’s vital to reframe them and ask: how do we stand in solidarity with people that have far less and therefore are far more impacted by crisis? Reframing the situation in this way helps us avoid falling into a self-preservation mindset and move toward a mindset of maximizing our giving.
Here, people often get caught up on trying to determine the right amount to give. However, we almost always come with a range – a minimum and a potential ceiling – in mind. With that said, if you’re unsure what the top of the range is, move forward and give the bottom of your range – because in times of crisis, everyday matters. It’s better to give what you know you can now and potentially give more later than to wait, deliberate, and give the whole gift later.
6. How do you factor in giving for advocacy and policy action vs. other demands?
Government’s response and actions in the face of COVID-19 and other crises will have a greater impact than any private action. This pandemic has laid bare many of the shortcomings in our society – and giving to advocacy and policy action is an opportunity to leverage this moment to make long-term, systemic changes. Drilling down on how you can give to advocacy and policy action is crucial for effective giving in times of crisis.
We hope that these questions help make the task of grounding your giving during a crisis more manageable. As we said before, there are no right or wrong answers to these questions. The most important decision you can make in times of crisis is to be intentional in your strategy.