I write a monthly column called On Philanthropy for the Financial Times. I cover a broad range of topics and love getting feedback or ideas for new columns. You can shoot me an email by clicking here.
‘Blood money’ that became a force for good
August 12, 2008
Like everyone who lost a loved one on 9/11 Steve and Liz Alderman were devastated when their 25-year-old son, Peter, was killed in the World Trade Center attack. Like many, they chose to honor their son’s memory by creating a foundation in his name.
Of the 303 non-profit organizations launched in response to 9/11, only 27 were still operating five years later, according to a study by the NonProfit Times. What has kept the Peter C. Alderman Foundation going is his parents’ focus on… keep reading.
Invest in the Best to Make an Impact
June 28, 2008
Giving money to charity does not necessarily make the world a better place. Nevertheless, most donors believe that donating qualifies as “doing good”. In fact, the gift of money is only the first step in a chain of events that might achieve the elusive goal of creating social impact.
For-profit investors understand this issue. Making an investment does not guarantee a profit; this comes from what a business does with its capital. A result of the belief that the donation itself produces an impact is the idea that… keep reading.
Givers: Go Out and See For Yourselves
May 31, 2008
I recently left behind my office, with its constantly ringing phone and glowing computer screens, to visit some of the non-profits funded by Philanthropic Ventures Foundation, a public charity founded and led by Bill Somerville.
As we stood in line at a soup kitchen in our dress slacks and collared shirts, the other men and women turned curious eyes our way. “I’ve brought people here in the past who worry that… keep reading.
The Foundations of Tax-Efficient Giving
May 10, 2008
Many people think of charitable giving as an item in their annual budget, and measure it as a percentage of income. But if you own financial assets such as real estate or a portfolio of stocks and bonds, you should consider an endowment approach to your philanthropy.
Ultra-wealthy philanthropists have long created… keep reading.
Non-profits look to invest in themselves
March 29, 2008
When you donate to a non-profit organization, you expect your money to be used to help the people the non-profit serves. You want your money to help a pre-schooler, a homeless person or someone with a disease. But what about the non-profit itself? Are donors interested in investing in the growth of a non-profit, so that it can develop a sustainable business model and serve more people over time? Clara Miller and George Overholser think so.
Miller founded Nonprofit Finance Fund in 1980 to lend money to non-profits so they could invest in more energy-efficient light fixtures and equipment. The resulting lower energy bills reduced costs and allowed… keep reading.
The Donor Landscape of 2033 is Bright
March 1, 2008
Philanthropy is undergoing a transformational shift. While most donors continue to give in the same ways they have for 100 years, the vanguard of philanthropy is busily reforming the fabric of the charitable sector.
Often referred to as the “social capital markets” and characterized by a model of giving that mirrors the financial markets, this emerging model is still… keep reading.
Satisfaction Guaranteed by a Little Research
February 2, 2008
Are you a hot-tip donor? If you are reading this newspaper, you are probably sophisticated enough not to chase the stock of a company that your friend’s sister’s husband says has a hot new product.
But if you are like most people, you decide which non-profits to support using… keep reading.
Time to take a hard-nosed look at giving
January 5, 2008
Every end is a new beginning. Having said goodbye to 2007, now is the time to look forward to 2008 and decide what kind of philanthropist you want to be. Are you satisfied being part of the majority of Americans who rush to fulfil their philanthropic obligations in a flurry of year-end giving? Or will this be the year that you get organised and maximise the impact of your philanthropic capital?
Recently, the Financial Times reported on the growing ranks of “hard-nosed philanthropists”. These donors are “part of a new… keep reading.
How to make your giving more effective
November 24, 2007
Thanksgiving is a time to “give thanks”, but giving thanks well is harder than you think. We are in the middle of Giving Season, that time of year when many Americans donate time or money to their favourite non-profit. Most people give reactively to a variety of causes that catch their attention for one reason or another. There is a better way to celebrate the Giving Season.
This year, when you are making your holiday gift list, consider one of these excellent books that will show you and your family how to “give thanks” well and find a deeper… keep reading.
Children need not be taxing
October 26, 2007
An old philanthropic planning technique is ready to explode in popularity. Parents have long used charitable lead trusts to make tax-free gifts to their children while using philanthropy as a way to prepare them for wealth. But as life expectancies rise and people become wealthier sooner, this obscure trust is enjoying a renaissance among young millionaires.
Affluent families used to either inherit wealth or earn it over a long career. Today, most wealthy individuals are self-made and an important subset, especially in the technology sector, is making millions before starting a family. Those who inherited wealth in the past often did so while building their own financial security. Now, some do not receive their inheritance until… keep reading.
True measure of giving won’t always add up
September 28, 2007
Our understanding of philanthropy is changing from “giving money away ” to “making social investments “. But this admirable shift is leading some donors mistakenly to focus on how charities spend donations, instead of understanding whether the organisations they support are making a difference.
When investors evaluate for-profit companies, they ultimately need to answer one question: how much money will the company make? The non-profit equivalent, the charity’s “profit “, is the impact charities have on their chosen cause. Better living conditions, improved education and a cleaner environment are examples of impact. While these outcomes can be difficult to evaluate, they are the only… keep reading.
Philanthropy not just for the ultra-rich
August 24, 2007
Bill Gates. Warren Buffett. The massive transfer of wealth between generations. Stories abound about billions of dollars being set aside for charity. Yet there is an even bigger story unfolding; the story of a growing number of everyday individuals who are waking up to the fact that they, too, can engage in philanthropy.
The fact is that philanthropy is no longer only for the ultra-rich. A good rule of thumb is that you should consider philanthropic tools such as transferring stock or using a donor advised fund if you give more than $500 a year. If you give more than $25,000 a year you can… keep reading.