For donors large and small, the arrival of the season of gratitude and the realization that the fiscal year is coming to an end bring an increased focus on giving.

This year has an added layer. As the United States prepares for a change in leadership, the philanthropic sector is taking a beat to assess plans and priorities. As donors evaluate and perhaps reevaluate their giving, it’s critical to remember the unique attributes of philanthropy. Its ability to be nimble and get to work quickly to respond to the needs of the moment, as well as its ability to be patient and focus on long-term systems change makes it different than any other form of capital.

For over a decade, the Milken Institute has worked with philanthropists at all stages of their giving to ensure their investments are informed, intentional, and designed to build a better, more equitable world. A few best practices have steadied the hands of the most strategic philanthropists, creating an impact beyond their goals. By embracing a methodical approach to decision-making, detailed below, our partners maintain a steady trajectory toward lasting change.

1. They take time to understand the issue at hand. Philanthropic strategy should be based on understanding the problem a donor wishes to address. They listen and learn from experts, those with lived experience, and stakeholders from various sectors. Then, they work with these stakeholders to prioritize solutions and opportunities most likely to make an outsized impact.
2. They map stakeholders to uncover potential beneficiaries or partnerships. Familiarity with who is doing what in a particular field has helped ensure that philanthropic efforts are distinct and has helped many donors uncover new partners. Knowledge is a superpower—and it unlocks paths to overlooked solutions, complementary expertise and networks, and additional capital.
3. They listen to communities and cultivate trusting relationships. By listening to those closest to the problems, honoring lived experience, and incorporating diverse perspectives, philanthropists have confidently and collaboratively put trust in their grantees, ensuring their strategies are well-informed and match the needs of those they wish to support.
4. They utilize the various tools at their disposal. Grants, innovation competitions, advocacy campaigns, and impact investments each have unique benefits that can generate the desired impact and achieve lasting change. Matching the right tool with the right problem can maximize impact.
5. They set metrics to ascertain impact. Strategic funders set realistic expectations for outcomes based on the scope and complexity of the problem, their level of contribution, and the timeline to change. Clarifying the specific impact they aim to achieve and building in systems to assess that impact can inform future approaches and ultimately support the realization of their change objectives.
6. They embrace learning and collaboration. Experienced donors don’t go it alone—they work with peers and partners to ideate solutions, troubleshoot challenges, or align on strategy. This can amplify individual philanthropic efforts and catalyze greater impact. Savvy change-makers do not reinvent the wheel but seek out spaces for knowledge exchange and potential collaboration.

Even as the seasons or the headwinds change, the principles of strategic giving stay the same. It’s about far more than financial contributions; it’s an approach that, like any other investment, focuses on the long term while being agile to address emerging needs. Meaningful returns take time, particularly in the sciences and across the spectrum of nonprofit causes, where challenges are deeply entrenched, and entire systems need shifting. Ultimately, philanthropy is a driving force for shaping a more equitable and sustainable world for future generations.