One of the most common questions we hear around charitable giving is not how much someone can afford to give, but where the money should actually go.
Often this conversation starts after a CPA points out the tax benefits of charitable giving. The numbers work. The financial plan shows room to give $100,000 per year without jeopardizing long-term goals. The tax savings are there. And then the obvious question comes next:
Where should I give the money?
Start by Separating Tax Motivation From Impact
This situation comes up frequently when charitable giving begins as a tax conversation. There is nothing wrong with that. But tax efficiency alone is not a strategy for meaningful impact.
It is very easy to write a $100,000 check to a large national organization and be done for the year. That is the simplest path. The problem is not that these organizations lack worthy missions. The issue is distance.
The farther removed you are from how the money is actually used, the harder it is to know whether it is creating the impact you want. Administrative costs, broad mandates, and layers of decision-making all add friction between your check and the outcome.
Why Smaller and Local Organizations Often Create More Impact
At this level of giving, smaller organizations can create outsized results.
A $20,000 or $30,000 gift to a local nonprofit, school program, community organization, or humane society can meaningfully change their trajectory. In many cases, it can fund projects they have been trying to execute for years.
This is not a criticism of large charities. It is simply a recognition that scale cuts both ways. Local organizations tend to offer greater transparency, more direct accountability, and clearer insight into where the money goes.
You are far more likely to see a tangible result from your giving when you can clearly trace how it is being used.
Think in Multi-Year Commitments, Not One-Time Decisions
One of the biggest misconceptions is that you need to decide today where all $100,000 should go.
You do not.
A better approach is to think of charitable giving as a multi-year process built from smaller annual decisions. In the early years, spreading your giving across multiple organizations allows you to learn where your money makes the most impact.
You might allocate $10,000 to $20,000 across five to ten organizations in your community. This does two things. It limits risk, and it gives you real data.
How do these organizations communicate? How do they describe their goals? How transparent are they about results? How responsive is leadership?
These are not adversarial conversations. They are often some of the most energizing discussions clients have. Ask any nonprofit leader how they would use an additional $20,000 and you will get a thoughtful answer immediately.
Accountability and Leadership Matter
Smaller organizations come with trade-offs. Leadership quality, financial controls, and governance structures vary widely. That means you need to be a bit more engaged.
This does not mean micromanaging. It means understanding who is running the organization, how decisions are made, and how success is measured.
Blank checks tend to work best once relationships are already established. In the early stages, curiosity and dialogue are far more effective than blind trust.
Giving While You Are Alive Has Unique Advantages
One of the most underappreciated benefits of charitable giving during your lifetime is that you get to see the impact.
You can observe how your money is used. You can provide input. You can help shape outcomes. That level of feedback and fulfillment does not exist when giving happens only through an estate plan.
Many people worry that they lack a personal connection to a cause. In practice, that connection often comes after the giving starts, not before. Once you engage with organizations, relationships form quickly. Your name becomes familiar. The work becomes personal.
Start Somewhere and Let the Process Evolve
The number of charitable options can feel overwhelming. That is normal.
The solution is not to wait for the perfect answer. It is to start. Begin locally. Fund a few organizations. Ask good questions. Pay attention to what resonates.
Over time, patterns emerge. Certain causes will feel more meaningful. Certain organizations will stand out. That is when longer-term commitments begin to make sense.
Charitable giving does not require a lifelong conviction on day one. It requires curiosity, intention, and a willingness to learn.
This post is adapted from a recent episode of the Scholar Wealth Podcast. For more perspective on charitable giving strategies and aligning philanthropy with long-term planning, listen to the full podcast episode here.