When setting up a giving plan, most individuals, families and businesses begin with two basic questions: “Where do we start?” and “To which organizations should we give?” 

The answers to these two questions are essential to any strategic giving program, providing the framework for every subsequent decision a donor will make. Donors of all types and sizes, including individuals, foundations, or donor-advised funds (DAFs), benefit greatly from taking the time to create a mission statement. 

How to Create a Mission Statement to Guide Your Donations 

When developing a mission statement, start by meeting with your internal stakeholders. 

Families should include members of all adult or young-adult generations in this conversation. An outside facilitator can help family members explore and identify shared values and passions around charitable causes. When a mission statement is unilaterally drafted by one generation and imposed upon others, it is much less likely to engage the next generation of donors, remain relevant to all family members, and withstand the passage of time. 

In a business situation, an experienced facilitator can work with key internal and external stakeholders — executives, employees, shareholders, vendors, customers, and others — to ascertain their shared values and passions. In addition, strategic business or corporate philanthropy requires clear alignment between the company’s core business and the causes it chooses to support. A mission statement that bears little resemblance to a company’s raison d’etre is of limited value. 

In drafting the mission statement, consider these questions: 

  • What type of philanthropy should we focus on? 
  • Are we trying to preserve, prevent, or alter something? 
  • Are we centered around our community, the country, or the world? 
  • How often and for how long will we give? 
  • Will we remain independent or work with other donors? 
  • What are our key indicators of success? 

Crafting the Right Mission Statement for Your Goals 

By answering these core questions, a good mission statement sends important information about the donor’s direction and intent to potential nonprofit partners, other funders, and future grant recipients. 

By providing guidance to successors, the right mission statement also helps preserve donor intent over time. Donor intent should be respected by subsequent generations – but not carved in stone. Too often, donors use inflexible mission statements in a misguided attempt to govern a foundation’s activities from the grave. In a world of constant change, this is rarely effective. 

Rather, mission statements should be seen as dynamic expressions. There must be room for meaningful, ongoing engagement as time passes. Each year, they should be reviewed by leadership and re-evaluated based upon changed circumstances – both inside and outside of the family’s or business’ interests. 

Here are two good examples: 

  • The Smith Family Foundation’s mission is to preserve wild lands in Wyoming through the support of programs that educate about, purchase, and/or defend this important resource. 
  • The Jones Family Foundation supports high-quality, inventive, and experimental community programs that directly impact children, youth, and underprivileged families in California’s Santa Barbara, Ventura, and San Luis Obispo counties. 

Creating Clarity for Beneficiaries and Other Donors 

When shared with the nonprofit community, a mission statement helps beneficiaries know whether they are a good fit for potential funding, attracting the right partners and co-funders. Everyone gains a clear understanding of the donor’s focus and can thus avoid wasting time. 

In addition, a good mission statement helps donors say “no” to well-intentioned fund requesters – especially among friends. It is much easier when you can say, “I’m sorry, here’s our mission statement. Unfortunately, your worthy cause does not fall within our closely defined focus.” 

Most significantly, the right mission statement helps donors focus their philanthropic efforts, avoiding the “peanut butter approach” where grants are spread thinly over a wide area. A tightly crafted mission statement is an important step toward achieving that goal. 

Creation of a good mission statement is a worthwhile endeavor. It involves and educates current and future stakeholders, enforces focus, clarifies decision-making, and provides valuable information to nonprofits and other donors alike. 

NOTE: This article has been updated from its original version, which has appeared in other publications, written by Bruce DeBoskey, J.D., a philanthropic strategist working across the U.S. with The DeBoskey Group.