Leap of Reason: Managing to Outcomes in an Era of Scarcity, co-authored by an SVP Seattle Partner, was reviewed in The Economist. Click here to read the book review. Leap of Reason provides candid, practical insights about the ways that we can help our nonprofit Investees, through our grants and our strategic advice, improve their performance and sustainability. It will help spark important conversations that every nonprofit board and leadership team should have at a time of dramatic budget cuts at the local, state, and federal level.
Showing posts with label philanthropic education. Show all posts
Showing posts with label philanthropic education. Show all posts
June 9, 2011
Leap of Reason
Leap of Reason: Managing to Outcomes in an Era of Scarcity, co-authored by an SVP Seattle Partner, was reviewed in The Economist. Click here to read the book review. Leap of Reason provides candid, practical insights about the ways that we can help our nonprofit Investees, through our grants and our strategic advice, improve their performance and sustainability. It will help spark important conversations that every nonprofit board and leadership team should have at a time of dramatic budget cuts at the local, state, and federal level.
February 10, 2011
When You’ve Made Enough to Make a Difference
From Harvard Business Review
by William Foster and Susan Wolf Ditkoff
January 2011
Simply writing checks to organizations that do great work won’t create the ambitious changes many philanthropists are looking for. Even the richest individuals and largest foundations don’t have enough money to end poverty, reverse climate change, or cure cancer. Their staggering assets are tiny relative to the dollars involved in large, complex systems like education, the environment, and medical research…To achieve breakthrough changes, donors need a multiplier effect—an approach that delivers many dollars’ worth of impact for each dollar invested.
Click here to read more.
by William Foster and Susan Wolf Ditkoff
January 2011
Simply writing checks to organizations that do great work won’t create the ambitious changes many philanthropists are looking for. Even the richest individuals and largest foundations don’t have enough money to end poverty, reverse climate change, or cure cancer. Their staggering assets are tiny relative to the dollars involved in large, complex systems like education, the environment, and medical research…To achieve breakthrough changes, donors need a multiplier effect—an approach that delivers many dollars’ worth of impact for each dollar invested.
Click here to read more.
February 3, 2011
Holistic Philanthropy: An Integration Model For Giving
By John Burnett “Wealth is not new. Neither is charity. But the idea of using private wealth imaginatively, constructively, and systematically to attack the problems of mankind is new.” John Gardner
“Unless someone like you cares a whole lot, nothing is going to get better. It’s not.” Dr. Seuss
It is generally agreed that the word Philanthropy was coined 2500 years ago in ancient Greece by the playwright Aeschylus. Etymologically, the term means “the love of what is to be human.” Aggregating modern interpretations of philanthropy produces the modern definition, “private initiatives for public good, focusing on quality of life.”
Although the names of philanthropists have changed, the confusion as to the appropriate purpose of philanthropy is still being debated. Some posit that philanthropy is about helping the poor. Others contend that philanthropy is about acts of altruism resolving social needs that are not served, or are underserved. A third approach is about community building via aggregating funds in order to make a significant impact. Finally, and I hope least prevalent, philanthropy is about self-aggrandizement and receiving recognition.
While all these approaches contain some truth, there is an overriding acceptance that philanthropy necessitates large donations and financial support sustained over time. There is also a noted distinction between philanthropy and charitable giving. The latter term refers to individuals who are willing to give of their money, time, and talent to charitable causes. There is typically no strategic plan behind their giving decisions. Further, their individual efforts alone are seldom recognized as instigating significant change.
For the most part, the word philanthropy applies mainly to wealthy persons, and sometimes a trust created by a wealthy person with a particular social cause in mind. Because of the amount of support provided, philanthropists often make a significant impact on the cause being supported, i.e., think Bill Gates and Warren Buffet. Because of their greater capacities, philanthropists can address both short-term and long-term needs. They can also respond to emergencies.
Although this perspective on philanthropy has remained constant, much of the context has changed. Several factors affecting philanthropy have emerged in the last decade.
Most notably, the importance and evolution of the Internet and supportive technologies have changed the face of charities in the U.S. and worldwide. Every nonprofit now has the capability/requirement to create a website that delivers their “story” and a mechanism for collecting donations. It means that the competition for these dollars is worldwide. It means that transparency and accuracy of information is vital and required by donors. It means that head-to-head comparisons can be made. In addition, social media that directly connects through the Internet creates a personal process for sharing facts and opinions. All these technological advances allow philanthropists to employ the same investment model they might use to determine a possible for-profit investment and/or purchase.
A second factor that has greatly impacted philanthropy has been the degeneration of the world economy starting in 2008. It is reported by economists that this is the first time since the Great Depression of the 1930s that the affluent class has been impacted. As a result, donations by the wealthy has declined by up to 30% in some sectors, and 9% overall. Keep in mind that only 6% of donations are made by individuals or trusts, with incomes over $1 million. Still, fewer assets have produced philanthropists who are more careful, and insist on transparency and accountability. Once again, the traditional investment model is considered as the preferred framework for decision-making.
A third factor is the greater challenges faced by nonprofits in 2011. Virtually all nonprofits are facing tremendous financial stress. Keep in mind that although U.S, donations were approximately $335 billion in 2010, the costs of these nonprofits was over $ 1 trillion. As a result, employees have been fired, salaries reduced, and responsibilities have increased. There is also the double-headed coin of nonprofits. The causes have increased by 34% but the funding has decreased by 11%. In addition, the first Baby Boomers reached retirement age in January 2011, with almost 40% expecting to live on Social Security.
All these changes require adjustments if philanthropy is to remain a viable part of our society, or become an even more effective solver of societal problems. Here are some suggestions:
- Philanthropists need a multiplier effect – an approach that delivers many dollars’ worth of impact for each dollar invested i.e., an investment model.
- Philanthropists must understand the methods of change that breakthrough results require, e.g., scaling back, policy changes, and partnerships.
- Philanthropists must carefully determine how they can best support these efforts – through the roles they play, the resources they devote, and the relationships they develop -- and how these interface with their personal objectives.
- Philanthropists must avoid adding to the costs of the nonprofit through unreasonable requests, convoluted processing, and imposing their personal agenda.
- Philanthropists should focus on their investment model and avoid meddling in programs and organization management.
- Philanthropists can contribute to a better understanding of optimum capacity building, but must do their homework to do this effectively.
- The best contribution a philanthropist might make is influencing public will and government policies, along with supporting research and developing solutions.
- Philanthropists should adopt a 3.0 model of holistic giving, which means going beyond dealing with solving the specific cause, 1.0, through the consideration of the various stakeholders affected, 2.0, to a perspective that takes all societal elements into consideration, e.g., how the success of my nonprofit impacts the effectiveness of other nonprofits, 3.0.
If these suggestions are followed I believe that your philanthropic efforts will be more personally satisfying. It will also mean that the long-range impact of your resources will be more effective to both the nonprofits you support, and society- at- large.
I conclude with an observation. An organization I am currently affiliated with, San Diego Social Venture Partners, exhibits many of the guidelines I just listed. It reflects the new face of philanthropy.
Dr. John Burnett is President of John Burnett Marketing and author of “Nonprofit Marketing Best Practices.”
May 4, 2010
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.”
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.”
March 30, 2010
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.
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.
March 15, 2010
The Economic Self Sufficiency and Security of Women in San Diego County
Last summer, WomenGive San Diego commissioned a report to explore how best to meet the unique needs of women and girls in San Diego County. An analysis of earnings, employment trends and poverty rates at the national, state and local levels reveal that inequalities persist even as women's participation and penetration in the economy broadens. Thanks to Partner, Jan Tuttleman for being a driving force behind this valuable research.
Click here to view report
Click here to view report
Evaluating Foundation-Supported Capacity Building: Lessons Learned
The Human Interaction Research Institute recently released their study report, "Evaluating Foundation-Supported Capacity Building: Lessons Learned," which provides a variety of insights about how funder capacity-building programs are evaluated and what has been learned from them. SDSVP was one of 87 funders providing input to their research.
Click here to view report
Click here to view report
January 30, 2009
No-sweat Boot Camp for SDSVP Partners & Guests
By Cathy Yarbrough
No one had to perform pushups, drill or stand in formation at SDSVP’s first Boot Camp.
Instead the Partners and guests, including several San Diego nonprofit agency leaders, underwent eight hours of training in strategic and annual outcome planning, fund and revenue development, finance, legal affairs, information technology, marketing and public relations, and board development and governance.
The goal: to maximize Partners’ efforts to help SDSVP’s Investees and other San Diego nonprofits to become more effective and sustainable.
Partners who missed the inaugural Boot Camp can register for the repeat sessions on Saturday, Feb 7, 9:00 a.m. to 1:00 p.m., and Thursday, Feb 12, 5:00 to 9:00 p.m., at AMN Healthcare, 12400 High Bluff Dr. To register, please contact Mandy Sherlock at mandy@sdsvp.org or (760) 269-3836.
Boot Camp instructors were Partners skilled in applying the commercial sector’s performance standards, metrics and practices to SDSVP’s outcomes-based venture philanthropy.
At the inaugural Boot Camp, Duane Trombly reminded attendees that “SDSVP is leading the way” in applying strategic outcomes-based investment to nonprofit agencies. Philanthropic giving, Trombly pointed out, is shifting from giving based solely on the worthiness of a cause, to giving that holds nonprofits accountable for achieving long-lasting, measurable social change.
Outcome planning begins with the end in mind and defines success measurably and quantifiably through pre-defined performance targets and milestones.
In the commercial sector, success is measured by market share, revenue and profits, Trombly said. In the nonprofit world, it’s measured by impact: “what we boldly aspire to occur”.
Sherri Neasham emphasized the importance of “keeping what you’re measuring very simple” and adopting easy-to-use tools, whether they be Excel or Salesforce.com to track outcomes. “Milestones are clearly defined steps to achieve outcomes. They are specific, measurable, achievable, realistic and time-driven,” she pointed out.
Neasham used Volunteer San Diego as a case study in developing a strategic plan with bold initiatives and measures that will enable the agency’s board to monitor its success.
Ray Ellis and Joyce Ross spoke about nonprofit boards. Members of these boards must “educate, motivate, be part of the sales team,” said Ellis. Ross reviewed the 10 key enablers for board performance, with number one being, “Board clearly understands its roles and responsibilities and acts upon them.
”Unfortunately, “most board chairs don’t know what their responsibilities are, and most board members don’t know either,” said Ross. Many attendees agreed.
A good board must have timely and accurate financial reporting. “In the quickly changing economic times we live in, it is critical to evaluate current information,” said JoAnne Berg, who spoke about the basic concepts, skills and assessment tools of accounting and financial management.
For attendees who might view information technology as a foreign language, David Lynn introduced the grammar and punctuation of his career. He emphasized the importance of IT support and security, and backups and disaster recovery to “business continuity,” the ability of the nonprofit – or the for-profit -- to maintain its momentum.
Based on the post-event evaluations, the Boot Camp helps Partners and other volunteers to firm up their volunteer muscles. The workshop, attendees said, provided "concentrated instructions in key nonprofit areas" along with a "good overview of subjects with good insights from experienced people in their field."
No one had to perform pushups, drill or stand in formation at SDSVP’s first Boot Camp.
Instead the Partners and guests, including several San Diego nonprofit agency leaders, underwent eight hours of training in strategic and annual outcome planning, fund and revenue development, finance, legal affairs, information technology, marketing and public relations, and board development and governance.
The goal: to maximize Partners’ efforts to help SDSVP’s Investees and other San Diego nonprofits to become more effective and sustainable.
Partners who missed the inaugural Boot Camp can register for the repeat sessions on Saturday, Feb 7, 9:00 a.m. to 1:00 p.m., and Thursday, Feb 12, 5:00 to 9:00 p.m., at AMN Healthcare, 12400 High Bluff Dr. To register, please contact Mandy Sherlock at mandy@sdsvp.org or (760) 269-3836.
Boot Camp instructors were Partners skilled in applying the commercial sector’s performance standards, metrics and practices to SDSVP’s outcomes-based venture philanthropy.
At the inaugural Boot Camp, Duane Trombly reminded attendees that “SDSVP is leading the way” in applying strategic outcomes-based investment to nonprofit agencies. Philanthropic giving, Trombly pointed out, is shifting from giving based solely on the worthiness of a cause, to giving that holds nonprofits accountable for achieving long-lasting, measurable social change.
Outcome planning begins with the end in mind and defines success measurably and quantifiably through pre-defined performance targets and milestones.
In the commercial sector, success is measured by market share, revenue and profits, Trombly said. In the nonprofit world, it’s measured by impact: “what we boldly aspire to occur”.
Sherri Neasham emphasized the importance of “keeping what you’re measuring very simple” and adopting easy-to-use tools, whether they be Excel or Salesforce.com to track outcomes. “Milestones are clearly defined steps to achieve outcomes. They are specific, measurable, achievable, realistic and time-driven,” she pointed out.
Neasham used Volunteer San Diego as a case study in developing a strategic plan with bold initiatives and measures that will enable the agency’s board to monitor its success.
Ray Ellis and Joyce Ross spoke about nonprofit boards. Members of these boards must “educate, motivate, be part of the sales team,” said Ellis. Ross reviewed the 10 key enablers for board performance, with number one being, “Board clearly understands its roles and responsibilities and acts upon them.
”Unfortunately, “most board chairs don’t know what their responsibilities are, and most board members don’t know either,” said Ross. Many attendees agreed.
A good board must have timely and accurate financial reporting. “In the quickly changing economic times we live in, it is critical to evaluate current information,” said JoAnne Berg, who spoke about the basic concepts, skills and assessment tools of accounting and financial management.
For attendees who might view information technology as a foreign language, David Lynn introduced the grammar and punctuation of his career. He emphasized the importance of IT support and security, and backups and disaster recovery to “business continuity,” the ability of the nonprofit – or the for-profit -- to maintain its momentum.
Based on the post-event evaluations, the Boot Camp helps Partners and other volunteers to firm up their volunteer muscles. The workshop, attendees said, provided "concentrated instructions in key nonprofit areas" along with a "good overview of subjects with good insights from experienced people in their field."
January 27, 2009
Philanthropy and the Economy – Part III
SDSVP is continuing to compile articles and resources showing how philanthropy can lead the way in helping nonprofits during these hard economic times. Click on the links below for the articles, then share your thoughts by commenting on the SDSVP blog.
Being Nonprofit When No Profits Are Being Made
By Nancy Jamison
Local San Diego philanthropy in the economic crisis
A Giving Recession?
From Economist.com
The downturn poses new challenges for philanthropy
Being Nonprofit When No Profits Are Being Made
By Nancy Jamison
Local San Diego philanthropy in the economic crisis
A Giving Recession?
From Economist.com
The downturn poses new challenges for philanthropy
December 31, 2008
Philanthropy and the Economy – Part II
SDSVP is continuing to compile articles and resources showing how philanthropy can lead the way in helping nonprofits during these hard economic times. Click on the links below for the articles, then share your thoughts by commenting on the SDSVP blog.
Strategic Philanthropy in Tough Times by Paul Brest
Thoughts on how the strategic philanthropist should respond to this nearly unprecedented situation.
How to Survive a Week of Moral Hazards by Peter Karoff, Partner SVP Santa Barbara
In these unprecedented circumstances, what will be philanthropy’s response, what could it be, and how do we avoid what economists call “moral hazards”.
Bank Releases Initial Philanthropy Findings from the Boston Globe
Study shows that attitudes toward philanthropy are evolving
Strategic Philanthropy in Tough Times by Paul Brest
Thoughts on how the strategic philanthropist should respond to this nearly unprecedented situation.
How to Survive a Week of Moral Hazards by Peter Karoff, Partner SVP Santa Barbara
In these unprecedented circumstances, what will be philanthropy’s response, what could it be, and how do we avoid what economists call “moral hazards”.
Bank Releases Initial Philanthropy Findings from the Boston Globe
Study shows that attitudes toward philanthropy are evolving
Bank Releases Initial Philanthropy Findings
From the Boston Globe
November 24, 2008
"Nearly 60 percent of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to 'no longer feeling connected to the organization,'" Bank of America Corp. said today.
That's one headline from initial findings of a new survey commissioned by the bank's global wealth and investment management unit, which is based in Boston; the full study is scheduled for release early next year.
The study, the bank said in a press release, reflects the opinions of nearly 700 respondents with household income greater than $200,000 and/or net-worth of at least $1 million.
One insight from the study indicates that "wealthy donors are giving more strategically and are increasingly turning to legal and financial professionals as primary sources for advice about charitable giving decisions," said the bank, which is headquartered in North Carolina.
A recent Globe story, which focused on young Jewish donors, noted how attitudes toward philanthropy are evolving. To read that story, please click here.
November 24, 2008
"Nearly 60 percent of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to 'no longer feeling connected to the organization,'" Bank of America Corp. said today.
That's one headline from initial findings of a new survey commissioned by the bank's global wealth and investment management unit, which is based in Boston; the full study is scheduled for release early next year.
The study, the bank said in a press release, reflects the opinions of nearly 700 respondents with household income greater than $200,000 and/or net-worth of at least $1 million.
One insight from the study indicates that "wealthy donors are giving more strategically and are increasingly turning to legal and financial professionals as primary sources for advice about charitable giving decisions," said the bank, which is headquartered in North Carolina.
A recent Globe story, which focused on young Jewish donors, noted how attitudes toward philanthropy are evolving. To read that story, please click here.
November 24, 2008
Philanthropy and The Economy - Part I
SDSVP has compiled several articles and resources showing how philanthropy can lead the way in helping nonprofits during these hard economic times. Click on the links below for the articles, then share your thoughts by commenting on this post.
Philanthrocapitalism on Trial
Will the collapse of the global financial system also bring down philanthrocapitalism?
In Hard Times Philanthropy Can Lead the Way
Philanthropy can help the public work through the most critical challenges facing the nation right now: making choices and setting priorities.
Managing in Tough Times: 7 Steps
Even for nonprofit leaders who are accustomed to 'making much of little,' the repercussions of the unfolding economic downturn are likely to pose unprecedented challenges.
Giving USA Spotlight - The Economy
This issue of Giving USA Spotlight looks at recessions and economic slowdowns and their impact on charitable giving in order to help nonprofit organizations anticipate what might occur in 2008–2009 and plan accordingly.
Resilient Philanthropy
While it is clear that a strong stock market provides donors with a greater ease and sense of confidence in making gifts to nonprofit organizations, the opposite is not true. Down markets do not always foretell decreased philanthropy.
October 31, 2008
Wealth Expert Upbeat on Giving in Downturn
From Inside Philanthropy
October 20, 2008
Despite fear and uncertainty among nonprofits about the sliding economy and turmoil in the financial markets, a leading expert on wealth and philanthropy is optimistic about charitable giving.
While giving fell in the recession that followed the bursting of the dot.com bubble in 2000 and the 9/11 terrorist attacks in 2001, the rate of the decline was only half that of the decrease in wealth, says John J. Havens, senior associate director and senior research associate at the Center on Wealth and Philanthropy at Boston College.
And despite the recent plunge in the stock market, which already has recovered some of its losses, stocks account for less than 10 percent of households' assets, and stocks affect mutual funds, bonds and pension reserves, which together account for another 15 percent to 20 percent, Havens says.
Americans also own homes and businesses, so the market does not immediately affect the remaining 70 percent to 75 percent of household assets, he says.
Although their wealth affects Americans’ capacity for charitable giving, he says, their giving also reflects their personal income, their employment and their access to credit.
“I tend to be optimistic,” he says. “People are overreacting to the current bad conditions.
”In fact, he says, “large gifts are continuing at a high level.”
Large planned gifts, or those that are deferred or complex or involve assets other than cash such as stock or real estate, for example, have “inertia of their own” because they take time to plan and often involve lawyers, documents and accumulated funds, Havens says.
And that inertia “continues through the first year of a downturn,” he says.So instead of panicking, he says, nonprofits should watch for trends in personal income, unemployment and government efforts in the U.S. and abroad to ease the credit freeze.
“If personal income were to drop and wealth were to drop off and remain low, we’d be in serious shape with respect to philanthropic giving,” he says.
And if government efforts to loosen credit “do not have a major effect,” he says, “I would anticipate we’re going to have a very long and deep recession, with declines in both wealth and income, and therefore a major impact on philanthropy as well, although probably less so in percentage terms than on income itself or wealth itself.”
But he says he believes those efforts “will have the desired impact.
”Haven, who looked at per-household data on net worth, personal income and charitable giving for the period before and after the most recent recession, says wealth and giving patterns for households tend to be more stable than those of capital markets or personal income.
“So if past is prologue, we would expect the total amount of philanthropy to continue or increase for another several months or two to three quarters, but possibly not as rapidly,” he says.
“The real big question is whether the economy can sidestep this crisis so it doesn’t extend into employment and incomes of people,” he says. “I’m optimistic because I think we’re panicking too much.”
October 20, 2008
Despite fear and uncertainty among nonprofits about the sliding economy and turmoil in the financial markets, a leading expert on wealth and philanthropy is optimistic about charitable giving.
While giving fell in the recession that followed the bursting of the dot.com bubble in 2000 and the 9/11 terrorist attacks in 2001, the rate of the decline was only half that of the decrease in wealth, says John J. Havens, senior associate director and senior research associate at the Center on Wealth and Philanthropy at Boston College.
And despite the recent plunge in the stock market, which already has recovered some of its losses, stocks account for less than 10 percent of households' assets, and stocks affect mutual funds, bonds and pension reserves, which together account for another 15 percent to 20 percent, Havens says.
Americans also own homes and businesses, so the market does not immediately affect the remaining 70 percent to 75 percent of household assets, he says.
Although their wealth affects Americans’ capacity for charitable giving, he says, their giving also reflects their personal income, their employment and their access to credit.
“I tend to be optimistic,” he says. “People are overreacting to the current bad conditions.
”In fact, he says, “large gifts are continuing at a high level.”
Large planned gifts, or those that are deferred or complex or involve assets other than cash such as stock or real estate, for example, have “inertia of their own” because they take time to plan and often involve lawyers, documents and accumulated funds, Havens says.
And that inertia “continues through the first year of a downturn,” he says.So instead of panicking, he says, nonprofits should watch for trends in personal income, unemployment and government efforts in the U.S. and abroad to ease the credit freeze.
“If personal income were to drop and wealth were to drop off and remain low, we’d be in serious shape with respect to philanthropic giving,” he says.
And if government efforts to loosen credit “do not have a major effect,” he says, “I would anticipate we’re going to have a very long and deep recession, with declines in both wealth and income, and therefore a major impact on philanthropy as well, although probably less so in percentage terms than on income itself or wealth itself.”
But he says he believes those efforts “will have the desired impact.
”Haven, who looked at per-household data on net worth, personal income and charitable giving for the period before and after the most recent recession, says wealth and giving patterns for households tend to be more stable than those of capital markets or personal income.
“So if past is prologue, we would expect the total amount of philanthropy to continue or increase for another several months or two to three quarters, but possibly not as rapidly,” he says.
“The real big question is whether the economy can sidestep this crisis so it doesn’t extend into employment and incomes of people,” he says. “I’m optimistic because I think we’re panicking too much.”
Riding the Roller Coaster
Thoughts on the Times We are Living In
By Paul Shoemaker, Founder and Executive Director of Social Venture Partners Seattle
I’m sitting at 6:37am watching the markets take another roller coast dive, Dow down 338 points in 7 minutes. I’ve had a number of thoughts rolling through my head for several days now (as I’m sure all of you have too). I very much hope that you will not take my few words here as some kind of opportunistic join / rejoin / renew with SVP message. I am speaking to something far bigger than SVP or ourselves.
It goes without saying that we are living through a period of time, who knows how long it will last, that is different than anything any of us have ever experienced. It seems destined to make the ’01 dot-bust look like a blip / dip comparatively. You all know that the social needs in our neighborhood, cities, region, nation, world are going to grow and the public funds are gonna concurrently tighten (they have to). Philanthropy can’t begin to replace but a fraction of those dollars and this is going to affect all of us.
When people ask me in the last few weeks how all his will affect SVP, I say I don’t know yet, it’s been so quick. I do know that in ’01 individuals were more persistent and stretched their giving longer and further than institutions did or could, though none of our wallets are bottomless.
But even more important than our financial capital, and I mean this 100%, is our spirit and our human capital. None of us can avoid feeling the stress and pain we are going through, but we can choose to not let it overwhelm and redefine us as human beings and citizens and philanthropists. I’ll share two thoughts I’ve received in the last few days –
“There’s plenty of reason for hope. Following a decade of record-breaking, boundary-spanning philanthropic efforts, bigger dollars and more people are engaged in philanthropy than ever before. By showing bold, effective leadership at a time of such global uncertainty, we could tap latent interest and entice others to join us in this collaborative effort to improve lives.” – Kathleen Enright
“I will not be sending stock. (My gawd, it’s sooo LOW that would be crazy), but I will send a check tomorrow. And just so you know, I thought about backing off, but in these times, figured it was even MORE important to continue giving – at least to those orgs that are efficient & effective.” – SVP Partner, 10/22/08
What we can do is be role models, we can persist, we can be the kind of people that don’t lose hope and remember that history shows there is ALWAYS a new AND better day on the horizon, no matter how far off it may appear. America, SVP, each of you, and countless philanthropic and non-profit organizations WILL persevere and we will make a huge difference in the lives and institutions that we all care about deeply. Our wallets are not bottomless, but our courage, our optimism, and our fortitude can be. At SVP, we have spent nearly 11 years building a model and body of work that has leverage, effectiveness, passion – we need to amplify and accelerate our efforts, not back off. We need to look upward and outward and work harder, not hunker down.
It’s 51 minutes later now and the Dow is down another 131 points … I was looking for one specific quote from Martin Luther King to close with – “The ultimate measure of a human is not where he stands in moments of comfort and convenience, but where she stands at times of challenge and controversy.” And as I was searching for that one, I found many others that might speak to each of us personally and intimately so I’ll share a few of those too, just in case one of them speaks directly to one of you.
I suspect times will get tougher before they get better, but we have each other and we always have our hearts and minds and souls and strength to continue to make a positive difference in our world, especially when it is needed most. Carry on!
Almost always, the creative dedicated minority has made the world better.
Change does not roll in on the wheels of inevitability, but comes through continuous struggle ... A human can't ride you unless your back is bent. Darkness cannot drive out darkness; only light can do that.
Every person must decide whether he will walk in the light of creative altruism or in the darkness of destructive selfishness.
Faith is taking the first step even when you don't see the whole staircase.
Life's most persistent and urgent question is, 'What are you doing for others?'
We must accept finite disappointment, but never lose infinite hope.
We may have all come on different ships, but we're in the same boat now.
Whatever your life's work is, do it well. A human should do her job so well that the living, the dead, and the unborn could do it no better.
By Paul Shoemaker, Founder and Executive Director of Social Venture Partners Seattle
I’m sitting at 6:37am watching the markets take another roller coast dive, Dow down 338 points in 7 minutes. I’ve had a number of thoughts rolling through my head for several days now (as I’m sure all of you have too). I very much hope that you will not take my few words here as some kind of opportunistic join / rejoin / renew with SVP message. I am speaking to something far bigger than SVP or ourselves.
It goes without saying that we are living through a period of time, who knows how long it will last, that is different than anything any of us have ever experienced. It seems destined to make the ’01 dot-bust look like a blip / dip comparatively. You all know that the social needs in our neighborhood, cities, region, nation, world are going to grow and the public funds are gonna concurrently tighten (they have to). Philanthropy can’t begin to replace but a fraction of those dollars and this is going to affect all of us.
When people ask me in the last few weeks how all his will affect SVP, I say I don’t know yet, it’s been so quick. I do know that in ’01 individuals were more persistent and stretched their giving longer and further than institutions did or could, though none of our wallets are bottomless.
But even more important than our financial capital, and I mean this 100%, is our spirit and our human capital. None of us can avoid feeling the stress and pain we are going through, but we can choose to not let it overwhelm and redefine us as human beings and citizens and philanthropists. I’ll share two thoughts I’ve received in the last few days –
“There’s plenty of reason for hope. Following a decade of record-breaking, boundary-spanning philanthropic efforts, bigger dollars and more people are engaged in philanthropy than ever before. By showing bold, effective leadership at a time of such global uncertainty, we could tap latent interest and entice others to join us in this collaborative effort to improve lives.” – Kathleen Enright
“I will not be sending stock. (My gawd, it’s sooo LOW that would be crazy), but I will send a check tomorrow. And just so you know, I thought about backing off, but in these times, figured it was even MORE important to continue giving – at least to those orgs that are efficient & effective.” – SVP Partner, 10/22/08
What we can do is be role models, we can persist, we can be the kind of people that don’t lose hope and remember that history shows there is ALWAYS a new AND better day on the horizon, no matter how far off it may appear. America, SVP, each of you, and countless philanthropic and non-profit organizations WILL persevere and we will make a huge difference in the lives and institutions that we all care about deeply. Our wallets are not bottomless, but our courage, our optimism, and our fortitude can be. At SVP, we have spent nearly 11 years building a model and body of work that has leverage, effectiveness, passion – we need to amplify and accelerate our efforts, not back off. We need to look upward and outward and work harder, not hunker down.
It’s 51 minutes later now and the Dow is down another 131 points … I was looking for one specific quote from Martin Luther King to close with – “The ultimate measure of a human is not where he stands in moments of comfort and convenience, but where she stands at times of challenge and controversy.” And as I was searching for that one, I found many others that might speak to each of us personally and intimately so I’ll share a few of those too, just in case one of them speaks directly to one of you.
I suspect times will get tougher before they get better, but we have each other and we always have our hearts and minds and souls and strength to continue to make a positive difference in our world, especially when it is needed most. Carry on!
Almost always, the creative dedicated minority has made the world better.
Change does not roll in on the wheels of inevitability, but comes through continuous struggle ... A human can't ride you unless your back is bent. Darkness cannot drive out darkness; only light can do that.
Every person must decide whether he will walk in the light of creative altruism or in the darkness of destructive selfishness.
Faith is taking the first step even when you don't see the whole staircase.
Life's most persistent and urgent question is, 'What are you doing for others?'
We must accept finite disappointment, but never lose infinite hope.
We may have all come on different ships, but we're in the same boat now.
Whatever your life's work is, do it well. A human should do her job so well that the living, the dead, and the unborn could do it no better.
October 15, 2008
Money to Grow On
From the Stanford Social Innovation Review
Fall 2008
In the for-profit world, the term “investment” has clear meaning and investors have sophisticated techniques for spotting and growing the most promising companies. Yet foundations and other nonprofit donors have not developed similar clarity or approaches. As a result, the nonprofit sector’s greatest gems often languish well below their full potential. By better translating for-profit concepts, donors can learn how to scout out and grow the best nonprofits. Likewise, certain nonprofits can take a page from business’s playbook and learn how to attract cash for expansion.
Click here to read the full article.
Fall 2008
In the for-profit world, the term “investment” has clear meaning and investors have sophisticated techniques for spotting and growing the most promising companies. Yet foundations and other nonprofit donors have not developed similar clarity or approaches. As a result, the nonprofit sector’s greatest gems often languish well below their full potential. By better translating for-profit concepts, donors can learn how to scout out and grow the best nonprofits. Likewise, certain nonprofits can take a page from business’s playbook and learn how to attract cash for expansion.
Click here to read the full article.
September 29, 2008
The Coming Paradigm Shift in Philanthropy: It's Not About the Money
From onPhilanthropy.com
Historically and largely still, philanthropy is about the transfer of money from the individual with it to the individuals without it. The currency behind the relationship is that of a gift: a voluntary transfer of value from giver to recipient without compensation. However, we are in the midst of a paradigmatic shift in philanthropy. The shift is not about money. It is about the entire structure of thinking and approach to problem-solving. The new paradigm implies new skills, new relationships, new pathways of accountability, new standards of performance, and new criteria for decision making. These imply a very, very different kind of culture than in traditional gift-making approaches.
Click here to read the full article
Historically and largely still, philanthropy is about the transfer of money from the individual with it to the individuals without it. The currency behind the relationship is that of a gift: a voluntary transfer of value from giver to recipient without compensation. However, we are in the midst of a paradigmatic shift in philanthropy. The shift is not about money. It is about the entire structure of thinking and approach to problem-solving. The new paradigm implies new skills, new relationships, new pathways of accountability, new standards of performance, and new criteria for decision making. These imply a very, very different kind of culture than in traditional gift-making approaches.
Click here to read the full article
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