You will not be surprised to hear that, as a private client manager at the Charities Aid Foundation (CAF), I find philanthropy an exciting and innovative sector. Every day, I get to see the impact of thoughtful giving despite misconceptions about giving. However, some myths and misconceptions still persist that prevent both new and more-experienced philanthropists from making the most of their giving.

Myth One

Today's problems are too big for anyone to solve

With so much going on in the world right now, it can feel incredibly overwhelming, forming the basis of the first misconception about giving. And many donors question if their contribution can make a genuine difference with an ever-growing funding gap. But do not let this discourage you.

By developing a clear plan and strategic approach to your philanthropy, you can make sure that you are always giving with purpose and impact.

Ask yourself – what do I care about? What does change mean to me? And where can my contribution make the most difference? By taking a step back to think about the impact you want to make first, the perspective you gain will reduce the risk of feeling overwhelmed as well as help make your giving more fulfilling.

Myth Two

Efficient charities have low overheads

Like all organisations, charities need good governance and administrative support to run well. Strategic development, impact measurement, robust financial management and good governance are vital to a charity’s resilience and impact, but they also contribute to their overheads. In fact, based on CAF’s work with charities across the sector, we know that higher running costs can lead to better performance, forming the basis of the second misconception about giving.

So, if you are making project-specific donations, consider taking a full-cost recovery approach. This includes a percentage contribution to a charity’s overheads to make sure the lights stay on and the project runs effectively.

Myth Three

You need to restrict donations to generate impact

One of the best ways to make an impactful difference is to give unrestricted donations to charities you trust. Find out more about the charity you are considering supporting. You do not need to be an expert. You can start by looking at the charity’s vision, talking to their decision makers and understanding the difference they are trying to make.

Read the full article about misconceptions about giving by Eleanor Roberts at Charities Aid Foundation.