How to Make a Difference When the Problem Feels Huge

November 28, 2023

What happens when you have millions of dollars to make a meaningful impact, but have no idea where or how to begin?

Karey Dye, president of the Goldman Sachs Philanthropy Fund, sees this constantly in her work with the Goldman Sachs Family Office. On its surface, the issue seems simple: have money, will donate. But the higher the amount, the more complex giving becomes.

“When you have all these resources you’re trying to give away, it’s overwhelming,” she says. “Until you start being a philanthropist, it’s like any new venture – it’s hard.”

Zero in on a specific cause and population

As a first step, Karey recommends bounding the problem. First, zero in on a cause you’re passionate about that’s meaningful to you. Start with the cause at its highest level and then determine what falls under that umbrella. In other words, what categories and subcategories of that issue are you most passionate about and best equipped to focus on?

This is something Karey and her team help with.

“We are the bridge between someone with the spark and the issue where they would like to make an impact,” she says. “We educate donors on the landscape and various opportunities within that, to help narrow the focus.”

This breaks down the larger issue into identifiable opportunities and potential solutions. For example, if you want to make an environmental impact, first divide it into smaller issues with a taxonomy chart.

Let’s say you want to focus on food systems within the environmental umbrella. You could further break down the issue into culture, policy, and infrastructure, positioning yourself to hone in on where you want to make a meaningful impact.

Karey’s team can help identify examples of nonprofits that are actively working in these subcategories. In addition, there are often events, webinars, and other learning tools focused on that cause that the team can highlight as additional resources for getting educated and making connections with knowledgeable people doing the most important work in the area.

If you decide to channel your philanthropic efforts through a donor-advised fund (DAF), your DAF advisory team will help determine if the organization is legitimate and qualified.

Eventually, you arrive at what Karey calls the ‘aha moment.’

“You reach conviction in the area where you want to make a difference, in the organization you are confident is doing good work and with leadership you trust," she says.

Finally, understand there are many options for supporting your selected organizations. For instance, you can fund for a specific purpose (a restricted fund) or allow the organization to use the funds at its discretion (unrestricted funding).

This decision is ultimately a personal one.

“Some clients say, if I’m choosing this nonprofit for my donation, I trust them and have vetted them to do the right thing with it,” Karey says. “And then they’re done.”

Please reach out to your Private Wealth Management team or request an introduction if you’re interested in further exploring how to make an impact with your philanthropy.

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How to Make a Difference When the Problem Feels Huge