Comments on: The Rise of a Philanthropic Culture http://tacticalphilanthropy.com/2007/04/the-rise-of-a-philanthropic-culture Tue, 06 Jan 2009 06:12:32 +0000 http://wordpress.org/?v=2.6.5 By: Sean Stannard-Stockton http://tacticalphilanthropy.com/2007/04/the-rise-of-a-philanthropic-culture#comment-172 Sean Stannard-Stockton Thu, 19 Apr 2007 14:28:58 +0000 http://tacticalphilanthropy.com/2007/04/17/the-rise-of-a-philanthropic-culture/#comment-172 During the stock market boom, individuals began to self direct their own investments. This came back to haunt them when the bust occurred and many of them realized they had made terrible decisions. In that case, the backlash was against stock brokers (ever see <a href="http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/06/07/BU37261.DTL&type=business" rel="nofollow">Schwab's lipstick on a pig ad</a>?). As the new self directed donors, hooked on the concept of "investing" in nonprofits, grows in numbers, I would expect nonprofits to finally say enough. Most donors do NOT know more than nonprofits do about how to run their business. During the stock market boom, the investment were made on the investors own behalf, so they were the ones from whom the backlash came. This time the "investments" are being made in nonprofits, and they are the ones who will finally call foul. That being said, this is just part of a normal boom/bust cycle. The concept of social investing is a good one. But every successful business person is not going to turn out to be the best philanthropist. During the stock market boom, individuals began to self direct their own investments. This came back to haunt them when the bust occurred and many of them realized they had made terrible decisions. In that case, the backlash was against stock brokers (ever see Schwab’s lipstick on a pig ad?).

As the new self directed donors, hooked on the concept of “investing” in nonprofits, grows in numbers, I would expect nonprofits to finally say enough. Most donors do NOT know more than nonprofits do about how to run their business.

During the stock market boom, the investment were made on the investors own behalf, so they were the ones from whom the backlash came. This time the “investments” are being made in nonprofits, and they are the ones who will finally call foul.

That being said, this is just part of a normal boom/bust cycle. The concept of social investing is a good one. But every successful business person is not going to turn out to be the best philanthropist.

]]> By: Philanthromedia http://tacticalphilanthropy.com/2007/04/the-rise-of-a-philanthropic-culture#comment-171 Philanthromedia Thu, 19 Apr 2007 00:09:59 +0000 http://tacticalphilanthropy.com/2007/04/17/the-rise-of-a-philanthropic-culture/#comment-171 I agree with everything you have said here but would be interested to hear more about the backlash that you anticipate from nonprofits, and how/who that mirrors from the democratization of the financial markets. I agree with everything you have said here but would be interested to hear more about the backlash that you anticipate from nonprofits, and how/who that mirrors from the democratization of the financial markets.

]]>