Divide and multiply: spreading the love with your charitable donations
So, you’re wanting to give to charity. The question of how much is a good one but, equally so, to how many? Have we ever thought about the effectiveness, or lack thereof, of only giving to one charity? Joanna Gresty asks us to embrace the case for ‘philanthropic diversification’ - for splitting your donations between multiple charities, instead of just one. Turns out spreading the love is not just congenial, it’s vital.
If you’re here, I presume you’re interested in being a positive change in the world. What’s more, you may well agree that diversifying your donations can amplify your impact, address a wider range of pressing issues, and foster a more inclusive society. This is called ‘Philanthropic Diversification’ and it is the practice of allocating donations to multiple charities rather than the single charity with the highest expected value.
Firstly, an understated benefit of it – the benefit to ourselves. According to a study conducted by the Centre for Effective Philanthropy, 81% of high-net-worth donors give deliberately to a diverse set of organisations. We all have different causes that resonate with us deeply. Diversifying your donations allows you to honour your passions and values by supporting multiple organisations that align with them. It’s like curating your own philanthropic gallery, where each charity represents a thread or brushstroke. By supporting multiple causes, you create a rich tapestry of change that reflects your diverse interests.
Furthermore, the study found that diversifying donations across different issue areas and geographic regions is associated with higher levels of satisfaction and fulfillment among donors. The Bill and Melinda Gates Foundation is renowned for its diverse portfolio of initiatives tackling global health, education, and poverty. Their broad approach has yielded impressive results, including the near eradication of polio in several countries and significant progress in reducing child mortality rates. Another example is the Chan Zuckerberg Initiative, founded by Mark Zuckerberg and Priscilla Chan. Their philanthropic efforts span education, criminal justice reform, and scientific research. Their diverse approach has impacted millions of lives through initiatives like personalised learning, supporting underserved communities, and advancing medical research.
The main reason we’d encourage you to expand your charitable portfolio, so to speak, is that it will ensure that pressing issues receive attention and resources across various sectors.
Take, for example, the impact of climate change and environmental degradation. By supporting organisations dedicated to environmental conservation, clean energy, and sustainable agriculture, you are mitigating the effects of climate change, preserving biodiversity, and securing a healthier planet for future generations. But, simultaneously, it is crucial to address social inequalities that arise through this. By diversifying donations, we can tackle interconnected issues and work towards a more equitable society. Not only this, but being an active donor to multiple charities means you garner more information on these great causes, useful for prioritising future donation decisions and spreading the word to others. New evidence may even change your mind about which charities can most effectively use your donations, so it’s sensible to maintain a wide breadth.
Givto revolutionises your philanthropic landscape by providing an innovative solution to both diversify and simplify your donations. With Givto, you can discover and support a wide range of UK-based charities and causes all in one place. Givto allows you to support a different charity every month and, with the option to pick from three worthy causes, you have the flexibility to choose which one is the most important to you. Giving made as easy as it ought to be!
Diversifying charitable donations is a strategic approach to maximise impact, address a wide array of issues, and create a more inclusive society. By spreading support across diverse causes and organisations, we can create transformative change in multiple areas simultaneously. We want to enable individuals to streamline their giving, make informed choices, and witness the collective power of their diversified donations.
Donating through Givto is embracing the power of diversification. Something that we believe shapes a brighter and more equitable future for all.
After all, variety is the spice of life!
Joanna is Givto’s content lead. Read more about Joanna and the rest of the team in our Meet the Team.