Giving Compass' Take:

• In this story from Money Observer, author Sam Barrett outlines the benefits to donors, including tax breaks, ease of planning, and opportunity for greater involvement.

• How do philanthropy services help drive impact?

• To learn about the social impact of venture philanthropy, click here.

Whether you make a regular donation to charity or leave a legacy in your will, using your wealth to support good causes can deliver much more than a financial return. Adopting some of the principles of philanthropy can increase the benefits of giving, both for you and for your chosen charities.

If you’re considering making a substantial donation, a philanthropy service can help. Joanna Walker, head of private clients at CAF [Charities Aid Foundation], explains: “We’ll work closely with our donors to help them identify the charities they want to support and structure their giving. It’s about helping them get the most out of giving.”

Often these donations are directed through a donor-advised fund, which enables an individual to give anonymously if they want, but also offers tax advantages. As a donation can be made into the fund before you’ve decided which causes you’d like to support, it can support tax-efficient estate planning.

Venture philanthropy is also becoming more commonplace. This draws on some of the principles of venture capital, according to Priscilla Boiardi, knowledge centre and policy director at the European Venture Philanthropy Association. “It’s based around three core practices: tailored financing, organisational support and impact management,” she explains. “It’s about getting much more involved in a social venture, often giving time and expertise to help it achieve its objectives.”

Many of the philanthropy services can help facilitate such involvement too. For example, Walker says she’s seen more people wanting to use their skills and time to benefit a charity. “Engagement can be as important as the financial gift,” she explains. “Being able to get involved with the charity, whether on the board or volunteering in another way, can make it more meaningful.”

Read the full article about philanthropy services by Sam Barrett at Money Observer.