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Happy Pride!
Many of us will be celebrating the achievements of the LGBTQ+ community this month. But it’s equally important we show our support all year long.
Over the past year, I have thought carefully about how I show up for the LGBTQ+ community. In my work as a financial planner, I advise LGBTQ+ clients on their personal financial plans and educate my peers on the nuanced financial challenges and opportunities facing this community.
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I stay informed through LGBTQ+ focused news and research, and I regularly share relevant insights in professional and personal conversations.
I also follow and support organizations doing critical work nationally, including The Trevor Project, HRC, GLAAD and PFLAG, as well as local community-based organizations like Out Montclair, the Melrose Human Rights Commission and BAGLY.
But when I stepped back and took an objective look at my finances, I discovered something interesting. Sure, I donate to LGBTQ+ groups, but my charitable giving tends to be reactionary — in response to a crisis, shocking news stories or social media campaigns.
This realization matters because how we give is as important as why we give.
How charitable giving strategy shapes LGBTQ+ impact
The way many of us give follows a similar pattern. According to the Voices for Good Report, 45% of donors give reactively when moved by crisis events, matching campaigns or social media requests. These donations tend to be smaller and one-off.
Reactive generosity plays a vital role. It helps address immediate harm and urgent need. But when reactive giving becomes the primary funding model, nonprofit organizations are left without the stability they need to plan, hire and serve effectively.
For LGBTQ+ organizations, this instability is especially pronounced.
According to The Equitable Giving Lab, only 0.17% of total charitable giving in the U.S. went to LGBTQ+ organizations in 2022. That’s less than $0.20 of every $100 donated.
In June 2025, a report revealed a decline in donations to LGBTQ+ organizations in 2023. Donations from the 20 largest funders accounted for nearly 46%, while their donations decreased by 24%.
This creates a dilemma when funds are centralized yet unstable. Projects take longer to begin. People lose their jobs. The leaders spend much time raising funds rather than providing services to the community.
The problem does not lie in generosity, but in the system.
Why recurring LGBTQ+ giving matters
Regularly scheduled gifts result in predictable revenue. This enables organizations to plan effectively, maintain staff, grow their programs and prepare for potential disasters without financial stress.
For the donor, regular giving results in alignment. Instead of allowing your principles to guide impulsive decisions, you can turn them into a habit, like other aspects of successful financial management.
While giving just $25 each month may seem like a small amount, for example, it adds up to $300 a year. If you’re wealthy and can donate much more, regular charitable giving can be both generous and strategic.
How to build a long-term LGBTQ+ giving strategy
If you want to move from reactive donations to sustained LGBTQ+ philanthropy, start with a simple framework.
1. Do your homework
LGBTQ+ community organizations have varied roles. They may be involved in youth crises, provision of counseling services, healthcare, housing, education and other community-building activities. Research not only national organizations but also those operating in your immediate environment.
2. Prioritize your donations
Donate to one or two organizations depending on the similarity between their mandate and yours. It is usually better to prioritize a few organizations and donate consistently rather than spreading donations around.
3. Make regular contributions
Identify an amount that you can contribute consistently, regardless of economic changes.
Tax smart strategies for LGBTQ+ charitable giving
Donors who earn higher incomes or have substantial assets find that their philanthropic efforts are best realized within a comprehensive, tax-efficient financial strategy.
Start with structural fundamentals
- Confirm the organization is a 501(c)(3) so contributions are tax deductible
- Review transparency and governance before deploying significant capital
- Understand how ongoing funding supports core programs
Use appreciated assets instead of cash
Donating appreciated publicly traded stock or qualifying private investments means you can:
- Avoid long-term capital gains tax on appreciation
- Receive a deduction equal to fair market value
- Increase net dollars reaching the organization
This approach can meaningfully outperform cash giving, particularly following strong market years or liquidity events.
Incorporate charitable vehicles for flexibility and scale
As giving grows, structure matters. Two commonly used vehicles are private foundations and donor-advised funds (DAFs).
Private foundations offer maximum control and formal governance:
- The commonly suggested minimum contribution is $1-2 million
- There’s no legal maximum contribution limit
- Foundations require legal formation, administration and annual compliance
- They must distribute at least 5% of non-charitable use assets annually
- They may be subject to excise taxes
- Charitable deduction limits are lower than direct gifts or DAFs
- They’re often appropriate for donors seeking multigenerational involvement and formal legacy planning
DAFs provide efficiency and flexibility:
- Contributions are irrevocable and tax deductible in the year funded
- Assets can be invested and grow tax free
- Fees are typically low
- Grants can be made immediately or over multiple years
- They’re well suited for coordinating giving with liquidity events, income spikes and long-term legacy planning
Both tools allow donors to deploy capital intentionally across market cycles while supporting consistent LGBTQ+ nonprofit funding.
Pride is about commitment
Pride began as a protest and continues as a celebration. It is sustained through commitment.
In order for these groups to remain relevant next year, in five years, and even 10 years from now, they require stable funding beyond periods of charity. Progressing from one-off donations to consistent and systematic LGBTQ+ giving ensures sustainability across the board.
For donors who are balancing their career income, concentrated stock positions or the sale of a business, a charitable planning strategy can make an impact. Coordinating your LGBTQ+ giving with tax planning, investment management and estate planning helps ensure your generosity is tied to your long-term financial security.
During this Pride Month, think about how you can use your finances not only to increase awareness, but also to guarantee longevity within the LGBTQ+ community.
While Pride is celebrated throughout June, supporting the LGBTQ+ community should be year-round.
