Is Your Family’s Philanthropy Prepared for the Future? July 26, 2017
Mission Statement To support the sustainable efforts of international development organizations in eliminating all types of poverty by fostering community development, particularly at grassroots level.
The West Foundation Overview • 59 year-old family foundation • Small staff with family board (several remote board members) • Funding Pillars • Education (Girls &Women) • Livelihoods Development • Grassroots Healthcare • Environmental Management
I. Trends
1. Fragmentation: Community Generational mobility Income, asset, race gaps Political polarization Opting out Suspicion of endowed wealth
1. Fragmentation: Trust 1 /3 Informed Americans who don’t trust nonprofits to “do what is right” General public less trusting Getting worse
2. Volunteerism & Engagement More flexible, short- term, task-based work Personal fulfillment & skill-building over obligation Choice, customization
2. Volunteerism & Engagement “Encore Stage” and “Half - Time” careers and mentoring Founders staying at the table, actively shaping legacy
2. Volunteerism & Engagement Online, collaborative Quicker access to leadership Self-driven, easily disengaged and detached
NCFP: Next Gen Challenges
NCFP: Options Offered to Next Gen
3. Definition of Philanthropy Voluntary action for the public good Robert Payton
3. Definition of Philanthropy Social economy = all the ways we use private resources to create public benefits or public good Lucy Bernholz
Impact investing Crowdfunding Some microfinance Invest Community investment Impact investing & Peer lending platforms shareholder activism Venture funds, B-Corps Philanthropic Action Tuition & healthcare Crowdfunding Farm and artist CSAs Products & tickets Cause marketing Fair trade purchases Buy Nonprofit social Responsible purchasing Sharing economy enterprises Sustainable supply chains 501(c)(3) Charities Crowdfunding Remittances Foundations and DAFs Crowdsourcing & co- Candidates & bundlers Give production, co-working 501(c)(4)s , other Crowdfunding , prizes, nonprofits grassroots $ Gov’t agencies Nonprofits Businesses Individuals Recipient of Action
Summary Trend… Impacts Your Family’s… How we perceive trust, Spiritual and social capital togetherness, community How we work, volunteer, and Human and intellectual capital engage together How we give, buy, and invest Financial capital
II. Building Resilience
Goal: Resilience & Adaptability “The ability to bounce back to healthy functioning after stress” “The capacity to adapt, improvise, and shape change” “The act of mindful, strategic anticipation”
Family Philanthropy – a collision of 2 systems Emotion-based Task-based Loyalty & Competence & belonging commitment Family/ Philanthropic Tools Personal Continuity & Growth harmony & change More free-form More structured
1. Mutual Value Proposition Skills Knowledge Relationships Foundation Self (or DAF etc…) Identity Reputation Gifts/Grants
2. Governance System Grantmaking, operations, Practices meetings, training Governance, participation, Policies decision-making Vision, mission, values Principles & Purpose adapted from materials by Patricia M. Angus, Esq.
Key Family Resiliency Factors Practices “How we use our resources” “How we organize and Policies communicate” “Our shared belief systems” Principles & Purpose
Values or principles exercises Principles Founder/legacy statements Oral/video histories Policies Purposeful trusts, ethical wills Family mission trips Principles & Purpose
Decision-making processes Conflict of interest (legal plus Principles family ethics) Board role, eligibility, terms, succession Policies Participation rules (obligation vs. invitation?) Lifespan and termination/ Practices transition of entity
Lifespan: A Conversation in Flux
Philanthropy Practices Hometown/founder $ Practices Discretionary $ Mission/strategic $ Policies Investments for good Time, talent, connections – for volunteering, problem Practices solving, leadership, advocacy
Internal Practices Operationalizing the Practices principles and policies Making time for storytelling and mutual learning Policies Keeping family connected to community, beneficiaries Can family truly self- Practices facilitate, authentically engage everyone?
III. Building Resilience (part 2)
3. Form Follows Function Practices Policies Principles
3. Form Follows Function Practices Policies Principles
Consequences of Function Following Form Only tool for Fighting the last Killing fun togetherness war Connection to Passive founding participation
Working with Your Professional Advisors Sales • May lack incentive, time, knowledge • Sophisticated technical results Expert Advisor • May lack “art of philanthropy” skills • Client clarity, truthtelling Discernment • More open to collaboration • May not know all philanthropy trends
Playing the Long Game with Your Advisors Division & Distribution Preservation Growth & Regeneration Matthew Wesley
New Ways Form is Following Function Private Foundation + DAFs Family Foundation + 501(c)(4) B Corp Investment Fund + Foundation Checkbook + PAC + Community Dev Bank Supporting Org + Super PAC + Impact Investments LLC + DAF
Building Resilience - Summary 1. Intentionality around intersection between family, philanthropy, business cultures 2. Mutual value proposition 3. Governance system (purpose, policy, practice) 4. Form follows function (e.g. goals drive tools)
How will you ensure resiliency in your philanthropy in the midst of unavoidable change?
• Wrap-up slides from Marie
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