Informed giving is designed to ensure that donations are aligned with the interests of beneficiaries. Specifically, donors are asked to be more discerning, discriminating and demanding of their charities so that there is proper accountability of funds used.
Informed giving is difficult to achieve as most individual donors don’t really care to do the due diligence needed for charity effectiveness.
Part of the solution may lie in developing a generation of grantmakers who have the resources and focus to ensure proper funds allocation and usage. What’s more, community foundations have evolved to fill the gap for mid-tier donors.