Reflections on The Art of Giving

By Cathleen Wolf

Every seat was taken at the March First Friday luncheon when San Diego Social Venture Partners board member Peg Eddy led a panel on The Art of Giving. These bimonthly discussions help the Partners address a shared goal of becoming more effective givers.

More than 30 years ago, Peg Eddy, CFA, and her husband Bob co-founded Creative Capital Management, Inc. They provide business counseling, financial, estate and succession planning and investment advisory services to families and businesses.

Peg opened the discussion with a question. Why do people choose to give their time, talent and money? The reasons for giving are endless. If you want maximum benefit, it’s best to learn all you can from certified financial and legal advisors who can help you make well-informed decisions, and who understand your motivations, goals and passions.

People who give face three challenges. The first is assuring that the charitable organization is well run. The second is distributing your gifts in a planned strategy that leverages your generosity. The third is developing your own philosophy of giving that helps you set your future course. “There is no grade for the art of giving,” Peg says. “The main goal is to give what you truly want to give, and to try to give effectively.”

First up was Dan Gatto, CPA and founding partner of Gatto, Pope & Warwick, LLP. Dan spans 25 years as the group’s senior tax specialist. “Much depends on your goals,” Dan said, “whether to minimize taxes, provide security for your survivors or facilitate the orderly transfer of assets to beneficiaries and charitable trusts.”

Dan highlighted common mistakes that taxpayers make:

- To get a charitable tax deduction, your contributions must be made to qualified 501 (c) (3) tax-exempt nonprofits (such as San Diego Social Venture Partners and all of its Investees).

- Get adequate documentation at the time when the gift is made. A thank you letter is not enough unless it states the gift type and value. Save copies of your checks or receipts.

Dan emphasized how a planned giving strategy can maximize your tax savings each year.

Peg introduced the next panelist by mentioning the importance of seeking sound legal advice when developing a charitable giving vehicle to manage charitable donations on behalf of an organization, a family or individual.

Phillip Sullivan, Esq. is a Partner in the estates and trusts group of Henderson, Caverly, Pum & Charney LLP. A frequent speaker on estate planning topics, Phil is an adjunct professor and lecturer at the California Western and University of San Diego Schools of Law.

Phil began with a familiar joke: “If you want to pay zero taxes, give all your money to charity.” Most people give to help causes that they care about so the world can be a better place, he continued. “Tax deductions are secondary. You don’t want the tax-deduction train to pull your charitable-giving engine.”

The audience laughed as Phil said that lifetime giving is far more rewarding than giving after death. “Through annual giving, you not only get immediate tax benefits, you see the results of how your money is invested.” He suggests that a trust or estate might “give a percentage rather than a dollar amount for assets that may go down in value.” He emphasized that recent tax and estate law changes must be carefully followed.

Phil explained private foundations and donor-advised funds have grown in popularity as well as scrutiny. Attendees discussed the complexities of interfamily gifting and whether to involve family members in making charitable decisions over money they hope might be theirs.

Peg Eddy added, “the situation is different for every family.” There’s a whole toolbox of giving choices today, she continued. “If you choose what’s best for you and your family – and keep it simple – you’re one step ahead.”

SDSVP Board member Steve Ness concluded the panel with personal reflections. He and his wife Pam joined SDSVP a few years ago after he sold his company (San Diego-based Dynamic Instruments, Inc.). Both had 30 years of entrepreneurial expertise but wanted to learn more about nonprofits. “We enjoy teaming up with others and learning how to be good philanthropists together.”

Steve explained, “For Pam and me, giving was an evolutionary process.” In their early marriage, they made annual donations to organizations they liked. “Philanthropy was all about writing a few checks in unstructured ways, because we wanted to.” In their middle years, their giving was “semi-structured” to support their careers or children’s educations. Most giving was driven by personal relationships – an event, a family illness or something with ties to organizations such as a business, church or school.

“Today our giving is more structured,” Steve said. He and Pam want to give the most (time, treasure, talent) to organizations that support their core values. “But how could we pick the right charities and know they would make meaningful change? We joined SDSVP because we knew that similar community-minded people could help us maximize our time and hone our skills at giving. Together we can help nonprofits build their organizations and strengthen their impact.”

Most attendees felt that effective giving involves a desire to know that their contributions, whether in dollars, expertise or both, can make the world better for themselves and for others.

The discussion ended with several comments on related concerns. Some mentioned the importance of involving (or not involving) children and grandchildren in making choices about family giving. Peg concluded the panel by saying, “for most, it boils down to control. With a well-informed plan, you have the satisfaction of knowing your giving is properly managed and aligns with your unique goals and passions. Alan Sorkin added: “As an organization of informed givers, what a substantial difference we can make.”

Say Hello to New Partner, Scott Arnold!

By Lori Thiel

Scott Arnold, 50, is always on the go. Maybe it's a holdover from his days as a "GM brat" as he calls himself. He spent his early years growing up in and around Motor City, did a stint in New York, went back to Michigan where he earned a BA in accounting and an MBA in finance, and ultimately wound up in San Diego in the early 90s. He has been to 34 countries, and in May he takes a long-term project assignment in Austin, TX to help his company, Life Technologies headquartered in Carlsbad, turn around its operations there. Nevertheless, Scott gave us the opportunity to chat with him before he packed up to go to Texas:

What do you like best about SDSVP?
I like its people and purpose. Either one without the other doesn't interest me.

What is your favorite place in the world and why?
I've been all over the world, and have fond memories of everywhere I’ve been, but my answer is cliche: the beach area at Torrey Pines. I like being outdoors, running along the water. It's scenic and it just feels comfortable there.

Please tell us about your family.
I'm not married and have no kids, but I do have four brothers, six nieces and nephews, and a fish called Wanda ;-)

Who are your favorite pets, past or current?
I have no pets currently, but as a child we had a beagle named Penny. She was a great dog!

How do you spend your days off?
Tennis, cycling, exercise, skiing, catching up with friends....

Please tell us about a project or dream.
I’ve got a dream to buy or lead a small company. I like the feel of small…I’ve never been comfortable in a crowd….

What industry?
Maybe it'd be a software company.

What is your most prized possession and why?
I’m not much of a “possession” guy – maybe I’m most appreciative of my family. But my second answer is my silver corvette [laughter].

What is your most impressive useless talent?
I'm from Detroit and am a big car guy. As a child I could identify cars in the dark strictly by looking at their headlights and taillights.

No one in SDSVP knows that...
1. I've never had a cup of coffee in my life. [At this point interviewer gasps and pleads for an explanation.] Not a fan of hot bitter drinks…..
2. As a child I played violin and was invited to play Carnegie Hall but turned down the offer. [Again, interviewer gasps and requests more information.] It didn't seem cool in fourth or fifth grade.

San Diego 10 News - Equinox Center's Waste Report

Equinox Center's Ann Tartre discusses the amount of trash the average person in San Diego county disposes versus the amount an average Californian disposes. What neighborhood do you think has the most trash?


In 2007, SDSVP launched an innovative initiative to further increase our impact. With a focus on the environment, Partners completed a 900 person-hour research and analysis project, the largest in SDSVP history. Then in 2008 we established a new organization, Equinox Center to help ensure a healthy environment, strong economy, and vibrant communities for the people of San Diego.

SDSVP & Reality Changers Featured on XETV San Diego 6 in the Morning

San Diego Social Venture Partners recently chose to invest in two San Diego nonprofits in the education sector Reality Changers and Audeo Charter School for funding and support up to three years. On Wed, March 31, XETV San Diego 6 Morning News interviewed SDSVP Partner, Ray Ellis, Reality Changers Founder, Chris Yanov and graduating senior, Michael Gaulden.

Social Venture Partners Turn Focus to Education

From San Diego Business Journal
Monday, April 5, 2010

By Brad Graves

San Diego Social Venture Partners said on March 25 that it made investments in two nonprofit organizations dedicated to education: Reality Changers and Audeo Charter School.

San Diego Social Venture Partners will offer $25,000 per year to the programs over three years. In addition, the group offers nonmonetary support, in the form of expertise and skills, to the organizations they fund. The total value of the support is $600,000 per organization, said Peggy Kidd, the charitable group’s executive director.

Reality Changers is an after-school mentoring program that helps disadvantaged youth in San Diego County become first-generation college students. Audeo Charter School offers an advanced and self-motivating alternative to traditional education for students in grades six through 12.

Kudos to Community Resource Center's Laurin Pause!

Community Resource Center’s Executive Director, Laurin Pause was recently selected by the County to receive their Public Health Champion Award for bringing collaborations and services to North County for the betterment of our community. Congrats, Laurin!

Annual Spring Fling: Home is Where the Heart Is

By Cathleen Wolf

Neither March winds nor pouring rain could prevent a hundred San Diego Social Venture Partners and friends from attending the Spring Party. This year’s quarterly party was held at the spacious home of Partners Ray and Gina Ellis. Delightful fare and lively conversations filled every room and warmed every heart.

At the height of the party, Azim Khamisa, founder of the Tariq Khamisa Foundation (TKF), was invited to address the crowd. Just one year ago, the Partners chose TKF as one of two new Investees for a three-year grant cycle. TKF is now in its fifteenth year making a difference in the lives of millions of children, bringing principles of peace and nonviolence. Through a powerful story of forgiveness, TKF is successfully saving kids from killing kids.

Azim caught everyone’s attention with his opening statement: “Had he lived, on this very day, my boy Tariq would be 36 years old.”

He continued: “I’m honored to celebrate one year of our Foundation’s special relationship with San Diego Social Venture Partners. Let us also honor Tariq on his birthday today. At age 20, my son’s life was taken forever because a 14-year-old shot him with a single bullet in a senseless act of violence.”

“Tariq, like his sister Tasreen, would probably be married and have his own kids by now,” he continued. “He loved children, and they loved him. But that was not his destiny.” There would be another path that opened up, not just for Azim, but also for a world in need of peace and forgiveness.

Azim mentioned how that week everyone’s hearts were broken by the recent, violent death of Chelsea King. This beautiful 17-year-old life was taken from us all in a terrible act of violence. “When one child dies, we are all diminished,” he said.

“Every day in this country, 75 more children die due to violent acts,” he continued. “My son was the victim of a boy who was a victim of our society, and that involves all of us. We are all responsible in one way or another.”

It was a long, painful process, but ultimately Azim chose not to seek revenge over the loss of his son. Instead he chose forgiveness and peace. "I saw Tariq as a victim of the 14-year-old, and I saw the 14-year-old as a victim of society. Both were victims at opposite ends of a gun."

Azim continued: “Who would have thought fifteen years ago that TKF would grow to a staff of more than 50 employees, developing five unique school-based programs that could reach 8 million kids? Who could have thought in this first year of partnership with SDSVP, we would build an even more awesome staff and board of directors, completely transformed in many tangible ways? Azim especially thanked Partners Wendy Gibson, Joyce Ross, Sherri Neasham, Joanne Berg, Mark Fackler and others for their passionate contributions of time and expertise.

Azim said that one of his own hardest choices this year “was learning to free myself from too many roles as Founder, Chairman, CEO, board member, and,” he quipped, “some less prestigious jobs.” He complimented Joyce and others who convinced him to redo the bylaws as the most significant step in helping the Foundation expand and grow. “Thanks to Sherri and your Resource Team, we’ve also mapped out our long-term plans and found new ways to keep TKF at the leading edge. Now we can work even more passionately to meet our mandate of ending the cycle of youth violence.”

Azim concluded, “America is by far the most violent nation in the world. Through comprehensive school programs, our Violence Impact Forums and other good works, together we can save the lives of many young ones who will contribute to making this a better world. I know Tariq would have been a positive agent of change in our world. And so would all the other kids we lose on a daily basis, when everyone in the community is wounded and diminished.

By joining our hearts and hands together, SDSVP and TKF are saving children's lives from death, empowering non-violent choices and embracing the peacemaking path.

How fitting to end the evening with our All-Star Dessert Showcase including cake and special desserts prepared by our Partners, Gina Ellis, AmyK Hutchens, Emmy Sobieski, and Louarn Sorkin.

Thanks to Azim’s inspiring words, there was one more reason to celebrate . . . and get back to those heartfelt conversations.

Happy Birthday, Tariq!

Click on the links to see party pics and video montage.

San Diego Coastkeeper Update

Emeritus Investee, San Diego Coastkeeper has been working on collaborative advocacy including putting together coalitions to promote ocean-friendly practices.

Coastkeeper has expanded their fundraising to support some new high-quality hires. They recently hired an experienced water-pollution expert to expand their watershed monitoring efforts. In addition, they added a Staff Scientist to provide technical input to their water policy and enforcement efforts. They also were able to hire the marketing/communications expert who spearheaded development of the marketing plan on a pro bono basis…this was the last piece of SDSVP’s 3-year plan.

Coastkeeper now has a staff of 15 which is up from the staff of 7 at the end of 2004 right before the SDSVP engagement began. Well done, Coastkeeper!

Interview With Social Venture Partners: A Longtail Philanthropy Model

Social Venture Partners (SVP) is an innovative organization that combines contributions of many sizes from individual philanthropist partners into larger, venture-capital type gifts. Accompanying these gifts is strong capacity building expertise and volunteer efforts from the philanthropist partners themselves. This model of giving is ideal for philanthropists who want to be involved in community efforts, share their expertise with local nonprofits, and meet and socialize with other local philanthropists.

As part of our series on Longtail Philanthropy, I’m interviewing Stacy Caldwell of Dallas Social Venture Partners, and Ruth Jones of Social Venture Partners International.

Click here to read more.