What is a Proactive Donor?

When it comes to charitable giving, some donors plan their contributions well in advance, while others are more reactive and prefer to support urgent, immediate causes spontaneously. Although each approach has its merits, there are some distinct benefits to being a proactive donor. Specifically, proactive donors are more intentional and consistent in supporting charities and causes. They plan ahead, think about the areas where they wish to make an impact, and set goals around their donations to achieve them.

As a result, proactive donors are usually happier and more satisfied with their giving because they have a sense of ownership over their generosity. However, there are times when you might consider taking a more reactive approach to giving or including it in your proactive giving strategy. We take a closer look at those scenarios and how you can maximize the impact of your charitable giving as a proactive donor.

What does it mean to be a proactive donor?

A proactive donor takes the time to map out their charitable giving in advance and plan for the kind of impact they want to have. By donating proactively, you’re providing the charities and causes that matter most to you with consistent and sustained support. Rather than reacting to whatever events or crises capture your attention, you’re taking control of your donations and aligning them with your values, priorities, and financial means.

Proactive donors usually consider the following when planning their giving:

• How much to give: Deciding on a set amount or percentage of income that they wish to donate each month, a year, or more.
• When to give: Planning the timing of their donations, whether on a regular schedule (monthly, quarterly, or annually) or around specific events or causes.
• Which causes to support: Identifying the causes that they care about and focusing their resources on charities that align with those priorities.

What are the benefits of being a proactive donor?

Consistency and sustained support

One of the biggest advantages of proactive giving is the ability to be consistent. Consistency lets you make a sustained impact on your chosen causes. It also ensures that you’re providing your favourite charities with steady support.

Your giving is aligned with personal values

Being proactive in your giving allows you to take the time to reflect on how you want to give. This lets you align your charitable giving with your values and goals, leading to a more meaningful and fulfilling experience.

More control over donations

By being proactive with your planned giving, you’ll have better control over how you allocate and distribute your donations. You can easily do this by using an Impact Account. When you deposit funds into the account, you can send recurring gifts directly to any of the 86,000 Canadian registered charities and causes in our database whenever you’re ready.

Purposeful and intentional impact

As a proactive donor, you can create a more concentrated impact by focusing your efforts on specific causes or charities based on your giving plan. You’ll also develop deeper relationships with the organizations you support and provide them with consistent donations.

Greater satisfaction and fulfillment

When you donate proactively, you’ll know that your contributions are going toward causes you care about the most. This can lead to a greater sense of fulfillment, especially when your donations are making a continual and lasting difference.

Why reactive giving is still important

While there are many benefits to proactive giving, there are times when a reactive approach might work better. Here are some of the reasons why reactive giving is still an important and valid way to give:

• Immediate response to crises and emergencies: When events like wildfires, floods, or pandemics occur, immediate support is often needed. By reacting quickly, you can directly impact the organizations providing relief to these urgent situations.
• Encourages spontaneous generosity: Sometimes, a cause resonates with you on a personal or emotional level, and you might want to give spontaneously. For example, you may hear about a friend’s fundraiser, a community initiative, or a specific story that touches you deeply. Reactive giving allows you to act on that emotional connection and give right away. 

• Diversity and flexibility in giving: While proactive donors may focus on long-term commitments to specific charities or causes, reactive giving allows for diversity in your charitable efforts. It gives you the freedom and flexibility to support a wide range of causes when you need to, without feeling locked into a rigid plan.

Striking a balance between proactive and reactive giving

Although planning is a key aspect of proactive giving, leaving room for reactive donations can be just as important. By balancing proactive and reactive giving, you can benefit from the best of both worlds – making a committed, long-term impact while also responding to the needs of urgent causes.

Here are some steps you can take to balance proactive and reactive giving:

• Determine a total annual giving budget: Create a budget for your annual charitable giving while allowing some wiggle room in case your financial situation changes.
• Allocate a portion for planned donations: Figure out how much you plan on giving to your favourite charities and causes. You can add funds to your Impact Account regularly so that you’ll always have money available to give whenever you want.
• Set aside an amount for unplanned giving: Allocate a percentage of your annual giving budget for unplanned donations, such as 20% of your total budget. 
• Be prepared to adjust: Evaluate your priorities and update your plan based on your financial means or when new causes or opportunities arise throughout the year.

Be thoughtful, proactive, and intentional in your giving

Becoming a proactive donor allows you to take control of your charitable giving and donate in ways that align with your values. By planning ahead, you can set clear goals, maintain consistent and sustained support for your favourite causes, and gain greater satisfaction from knowing you’ve made a lasting difference. Take the next step toward a more meaningful and intentional giving by downloading this worksheet. It’ll help you create a personalized giving strategy so you can start giving to charities and causes that matter most to you. For more tips and insights into purposeful planned giving, check out our online resources today.