Inspired by Bill Gates? 5 Moves to Start Your Own Spend-Down Journey

By Sofia Michelakis, Managing Director

Alex Welsh for The New York Times

As a philanthropic advisor and former lead of the Giving Pledge, I read with great enthusiasm Bill Gates’ announcement that he is accelerating the pace of the Gates Foundation’s grantmaking to adopt a 20-year spend-down. This is a real mark of leadership to step up during a time when the entire philanthropic sector is under threat. Through his example, Gates is signaling clearly the value of philanthropy and his view that progress can be accelerated by giving more now. 

Inspired by Chuck Feeney, the well-known philanthropist who gave away nearly his entire $8 billion fortune in his lifetime, Gates hopes others will join him. “I do think good examples influence other people,” he said, adding, “I think the rich people today should do more philanthropy ...” The question on many people’s minds is, Will his call be answered? No one can say for sure, but as our recent guest blogger, Maggie McGoldrick of the National Center for Family Philanthropy, has noted, many foundations are increasing payout and adopting a spend down horizon.

Often overlooked is the difference between a foundation deciding to spend down its endowment, and an individual choosing to spend down personal wealth. Gates plans to do both. Even after $60 billion in contributions that Gates and his former wife Melinda French Gates have made to the Gates Foundation, he still has a whopping $108 billion in personal assets remaining. He has committed to dropping his personal wealth by 99% to fund his charitable endeavors, which includes support for research to end Alzheimer’s disease and other initiatives in addition to his giving through the Gates Foundation. 

The distinction between foundation endowments and personal assets is important beyond the Gates example. The combined endowments of private foundations is a fraction of the wealth held by the wealthiest individuals and families. As of the end of 2024, U.S. private foundations held approximately $1.59 trillion in total financial assets, compared to over $49 trillion in wealth that is held by the top 1% of US households. 

While helpful resources exist for foundations spending down, the same is not true for individuals exploring this journey. We have had the privilege to work with multiple clients who are in the process of spending down a majority of their personal assets in 10 or 20 years. Some of the reasons we’ve heard from our clients include: 

• They wish to be bold and make a bigger difference today.

• They believe their position in a system of deep wealth inequality compels them to act with a vision for shared wellbeing.

• They don’t want their wealth and charitable plans be a burden to their children.

In other words, you don’t have to be as wealthy as Bill Gates to decide that you want to make a big difference in your lifetime!

For individuals considering how to approach spending down, we have five effective practices for you to consider.

1. Determine “how much is enough”.

What am I going to do? Just go buy a bunch of boats or something? Go gamble? This money should go back to society in the way that it has the best chance of causing something positive to happen. - Bill Gates

How much wealth you want to dedicate to philanthropy can be a struggle to decide. Putting off the decision while your wealth is compounding often causes people to give well below their capacity and undermines their intentions not to end up with an outsized charitable estate.

We find it helps people to figure out their personal family annual spending budget. Wealth advisors routinely work with their clients to come up with a comfortable spending amount. They can also project this out to come up with a total amount needed to live on before and after retirement. Another helpful resource that includes peer circles for shared learning is the Enough Project. 

Individuals also need to plan how much to set aside for children and grandchildren and anyone else outside of their immediate family they want to provide for in the future. Knowing how much you need to provide for yourself and loved ones will help you assess how much wealth to give away.

2. Decide on a specific time horizon.

[I]t allows us to do a lot more because we’re not trying to steward our money for some weird legacy thing. If we were trying to be a forever foundation, instead of being able to spend $9 billion a year, we’d have to drop down to spending like $6 billion a year. - Bill Gates

You know you want to give while living, but what does that mean? Ten years? Twenty years? Thirty? Confronting mortality is difficult, and none of us know how long we will live. Asking the question is important, as it has big implications for your annual giving budget. A good tool to test different scenarios and projections that we use is PhilanthPro (subscription based, and individuals can purchase their own account).

We often advise our clients to choose a time horizon that feels right to them now, and revisit it every five years or after a major life event. Bill Gates started out thinking he and Melinda would spend-down 50 years after their deaths, but that original time horizon has been shortened multiple times to the current 20-year plan.

Factors to consider in deciding a time horizon include:

• Your age – when do you envision stepping back or “retiring” from active charitable giving?

• Your level of involvement –  how important is it for you to personally direct how and where funding will go?

• Your values–what is your vision for the world you want for yourself, your children (if you have any), and your community? 

• Your sense of urgency–how do you feel about addressing today’s needs vs. reserving funds for the unknown needs of the future?

3. Communicate with your family.

In my case, my kids got a great upbringing and education but less than one percent of the total wealth. - Bill Gates

When a charitable foundation changes its time horizon from perpetuity to spend down, it is a board decision.  Sometimes multiple generations of a family sit on that board and are involved in the decision. However, there is no official “board” governing your decision to spend down your personal wealth and no requirement for transparency. 

We recommend that you share with close family members that you plan to spend down your wealth and why you are doing it. Some couples even decide to put their decision into a sort of “love letter” to their family that describes their values and motivations. Many adult Next Gen in families we’ve worked with have not only supported their parents’ spend down decisions, but also  advocated that the family increase and accelerate their charitable giving. Also, be sure to discuss any roles for children or grandchildren envisioned in your plans before assuming that they do (or don’t) wish to engage. In the end, you simply don’t want close members of your family surprised or uninformed. 

4. Get your advisors aligned around your goals.

A team of advisors can help you plan for distributing assets that you will give away. Most wealthy people have complex assets that will need to be considered – real estate, appreciated stock, privately held companies, revocable and irrevocable trusts, art collections and more. 

A spend down plan may require letting go of perfectly tax efficient giving. Your accountant  can help you understand the annual charitable giving amounts that are deductible from your income taxes, and you may discover that accelerating your giving means it won’t all be tax advantaged. When your tax advisor points this out, they are not telling you that you shouldn’t do it! Most CPAs are happy to see clients find joy and meaning through their philanthropy, and bringing up tax considerations is simply part of their job. 

Similarly, your wealth manager can help recommend the sequencing of asset liquidation to make funds available for giving in the early years of your spend down plan, while recommending a longer term plan to transfer or distribute funds from your more complicated assets to charity. Your estate attorney likely has a key role to play as well, as you will need to update your wills, review your existing trust documents, and make sure your intentions are documented properly. 

Given the variety of distinct skills involved in a personal spend down plan, we recommend that you have a “quarterback” who can manage the spend down process and keep all of the pieces moving in harmony. A philanthropic advisor is often in a good position to see across all of your different advisors with an eye toward your overall impact goals.

5. Have fun!

It’s much more fun to give while you’re alive than to give when you’re dead. - Chuck Feeney

With critical decisions made and your advisors and family informed and engaged, you’re ready to accelerate your giving! There is no shortage of good organizations and donor collaboratives to support. While the many options for giving overwhelm some people, we’ve seen that individuals and families who approach their giving with intention, and with the right support, experience greater clarity, deeper joy, and the satisfaction of seeing their impact grow in real time. 

Thinking about drawing down personal wealth assets to increase community assets can feel daunting, but it doesn’t have to be. Phīla has the experience and care needed to guide these conversations with you, your family, and your team. We specialize in building the trust that makes giving easier and more fulfilling. We are here when you are ready to take the first step. 

More Family Foundations are Paying More than Five Percent Annually

By Maggie McGoldrick

Photo by Frugal Flyer

The IRS requires private foundations to payout five percent of its assets each year. Funders have traditionally treated that five percent as the default payout, but many are beginning to think about five percent as a minimum rather than a ceiling, balancing their payout with their purpose and lifespan goals.

National Center for Family Philanthropy’s Trends 2025 study shows that just 25 percent of family foundations are now spending the minimum five percent, a significant change from Trends 2015 when 38 percent of respondents reported doing so. Twenty-six percent are spending between six and ten percent annually, a 62 percent increase over the last decade, and 20 percent report that they anticipate increasing their foundation’s payout rates in future years. From listening to and talking with our network, we know that family foundations increase their payout rates for many reasons, including a significant opportunity to meet their mission, a time of increased need in the communities they support, legacy grants, or because they intend to spend down.

Making Big Bets

Following the death of second-generation family member Bruce Duchossois in 2014, the Duchossois Family Foundation (TDFF) shifted from being a pass-through foundation to being endowed with a $100MM gift from Bruce. Simultaneously, the third generation became more closely engaged in the work of the foundation, with a particular interest in funding wellness and economic opportunity. The board ended up recommending a cutting-edge grant funding at the intersection of immunology and the microbiome, resulting in the creation of the Duchossois Family Institute at the University of Chicago. The foundation contributed $50MM over five years, matched by a personal gift from Janet and Craig Duchossois.

The foundation had never made a single grant of this size toward a new science, and the gift sent them far over their five-percent payout minimum, but the family was comfortable with taking some risk in this investment and was willing to make a big bet. Despite such a large gift, the foundation’s endowment has continued to grow and they have continued to spend at higher rates in recent years— 9.1 percent in 2022 and 11.8 percent in 2023. “With positive investment returns, we’ve proven that the endowment can still grow even when spending more,” said foundation president Mary Ann Roeser in a recent conversation with NCFP.

Meeting the Moment

Many funders are moved to spend more in times of crisis, such as when a natural disaster affects the communities they support, or when meeting their mission is particularly threatened.

In 2020, NCFP Fellow Dimple Abichandani, then executive director of the General Service Foundation (GSF), published an article about a “balancing test” approach to foundation spending. Unlike traditional spending policies, GSF’s balancing test takes into account far more than administrative costs and expected investment returns. Among the factors that GSF considers in its spending policy is the concept of “meeting the moment.” This component of Abichandani’s balancing test asks funders to consider whether this is a time of particular need for the foundation’s grantees and to weigh that against other factors that affect their spending practices, like perpetuity, investment returns, and values. Abichandani makes a compelling case that funders may wish to weigh “meeting the moment” more heavily in times of crisis and opportunity.

Covid-19

The advent of Covid-19 prompted many family philanthropies to consider what meeting an unprecedented moment looked like for them. For many, spending more than what they had planned was critical to supporting their grantees. The General Service Foundation, for example, responded by spending 10.5 percent in 2020.

The Duchossois Family Foundation’s (TDFF) approved budget seemed similarly insufficient to meet the unexpected needs of 2020 and the board strategically chose to allocate an additional $5MM in general operating support to several of the social service organizations it was already funding when the lockdown commenced in March 2020. For TDFF, spending 15.4 percent in 2020 was a values-led decision. The board was very concerned and agreed that “the needs of our community outweighed the budget in the conversation” said Roeser, who also notes that the TDFF board recognizes that sometimes “budgets and policies need to be loosened to be responsive to our communities.” Prior to Covid-19, TDFF projected its year-end assets to be nearly $137MM. Despite the additional $5MM gift outside of the anticipated budget, TDFF ended 2020 with assets of approximately $142MM—clearly demonstrating that increasing payout does not always result in immediate decreases to one’s endowment.

Threats to Democracy and Civil Society

Today, many funders are trying to meet a new moment—one in which nonprofits are contending with decreased federal funding and uncertain policies about diversity, equity, and inclusion. The MacArthur Foundation announced that it would increase its spending to at least six percent in 2025 and 2026 to support civil society. The Freedom Together Foundation (formerly the JPB Foundation) plans to spend up to ten percent for the next two years to “realize its mission and to protect and strengthen democracy,” according to an article from Inside Philanthropy.

Lemon Street Fund, a collection of 501(c)(3) and (c)(4) vehicles, does not use a private foundation for philanthropy and therefore is not bound to the same IRS regulations. Instead of using the lack of regulation as a reason to spend less, Lemon Street Fund co-founders Emily and Teo Valdés are increasing their funding. “We recognize the ways that new government policies, including but not limited to federal budget cuts, directly impact the work of organizations we support,” says Teo Valdes. “We completed all of our budgeted grants for multiyear partners and then an additional 20 percent in the first quarter.” The Lemon Street Fund anticipates spending approximately 120 percent more this year than it had projected on January 1. And, many more foundations are publicly committing to action, including by increasing their payouts, to meet the moment in a trust-based way.

Legacy Grants

Another common impetus for increasing payout is legacy grants. Often occurring upon the death of a founder or family member or to mark a celebratory milestone, funders may issue legacy grants in honor of an individual or couple. Legacy grants may be given on top of the previously planned gifts as a way to celebrate the life of someone close to the foundation, resulting in a higher payout.

Programmatic Shifts

For a variety of reasons, donors may choose to shift the programmatic focus of the philanthropy. In these cases, thoughtful funders frequently give larger, final grants prior to sunsetting a program. This helps to support those grantees through a time of transition. Or, like the Diane and Norman Bernstein Family Foundation, funders might recognize that they have to spend more to have a significant impact on the issues they care about. Diane and Norman Bernstein Family Foundation Executive Director Kelly Lynch noted that, upon revisiting the foundation’s work at the passing of the founders, “one big revelation was the five-percent payout rate and preservation of capital for legacy purposes seemed in direct odds with our belief that in order to move the needle we need big, bold investments that meaningfully improve outcomes for people in our community.”

Payout in Uncertain Times

It’s easier to argue for increased payouts when the economy—and your investments—are thriving. But many leaders argue that it’s when investment returns—and future grantmaking budgets— are also at risk may be when it is most important for funders to step up. “We must commit to be counter-cyclical in our spending,” writes John Palfrey, president of the John D. and Catherine T. MacArthur Foundation in a recent LinkedIn post. “Spend more when the need is greatest and when the social return on our gifts is highest. That is the only sound answer in my book. We just have to figure it out.”

In balancing their payout with their purpose and their lifespan goals, philanthropies must take into consideration what opportunities they might miss to meet their mission by clinging to a steady spending rate—and what opportunities they can seize in being responsive to the immediate needs of their grantee partners and communities.

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This piece was originally published by the National Center for Family Philanthropy and is re-printed here with permission.

Bridging Our Beliefs: Changing hearts and minds about giving to faith-based nonprofits

By Dilnaz Waraich & Lauren Janus

For many Americans who don’t consider themselves religious, making a gift to a faith-based nonprofit may feel awkward or uncomfortable. Our country has a complex relationship with our faith traditions, and many eschew faith-based giving as part of a pattern of implicit basis informed in part by cultural attitudes, racism and even fear of giving offence. 

As philanthropic professionals, we see this all of the time. Often we’ll interact with generous, thoughtful donors who want to give to community-based organizations but stop short of giving to anything “religious.” No conversation needed, let’s move on, please.

As active members of religious faiths ourselves, we see this as a tremendous missed opportunity. In fact, by engaging with each other on how and why we give to faith-based nonprofits, we can change the narrative around the role of faith-based charities in our communities and even dig into our own relational poverty in this country.

Dilnaz and Lauren, how could we do this?, you might ask.

First, let’s explore a few facts about faith-based giving. While religious institutions (mosques, churches, synagogues, etc.) attract a great deal of donations from their members and represent the largest category of giving in the US, faith-based charitable activity doesn’t stop there. 

In fact, 40% of social safety net spending in the US comes from faith-inspired nonprofit organizations. These aren’t religious membership organizations; they are food pantries, homeless shelters, addiction treatment facilities and the like. In other words, organizations that are often hyper-local and focused on meeting the immediate needs of especially vulnerable communities. 

Giving to organizations like these doesn’t mean you’re helping to convert people to a certain faith. Most of the time, it means that you’re supporting organizations so deeply rooted in the communities they serve that they provide a lifeline for beneficiaries, many of whom have nowhere else to turn.

While members of religious communities do tend to give generously to their own institutions, we also know that they tend to give above-and-beyond to non-religious organizations, too.

For example, even though research on Muslim philanthropy continues to be underfunded, the Muslim Philanthropy Initiative at the Indiana University Lilly Family School of Philanthropy has produced a growing body of research. The 2021 Muslim American Giving Report found that “Muslims also are more likely than the general public to give to non-faith-based civil rights causes (11.87% Muslims versus 5.45% general population)” and that “Muslims contribute 27.45% of their faith-based charity to houses of worship” compared to  the non-Muslim average of 51.28%. The report goes on to tell us that “compared to the general population, Muslims have a more positive image of the charitable sector” and are motivated more by compassion than the tax benefits. 

What does it look like to give to faith-based charities? Katie Owens Mulcahy, trustee at Owens Foundation in Chicago, is a Catholic faith-based funder learning more about  the Muslim traditions. She says:

Being in community with funders and service providers from different faith backgrounds has enriched my own faith practices and challenged me to think about philanthropy as a way to live my faith out loud. Experiencing my first Ramadan Iftar was deeply moving, offering me a firsthand understanding of how sacrifice and self-discipline leads to deeper spiritual connection. For example, when engaging with the Muslim-led nonprofit, the Muslim Civic Coalition, I was struck by the group’s  dedication to uplifting all people with compassion, mercy, and justice—values that strongly align with Christian teachings and reinforce my own commitment to philanthropy.

To truly support people—whether physically, emotionally, or spiritually—you must be present and accessible. This is why faith-based organizations are so effective in building trust and fostering genuine relationships. At The Owens Foundation, we rely on these organizations to serve the community because they are deeply rooted within it.

The months of March and April are special this year, because during this period three of our great faith traditions in America–Islam, Judaism and Christianity–all celebrate deeply spiritual holidays through Ramadan, Passover and Easter.

Our hope is that whether you recognize one of these holy periods or not, we as Americans can take the time to reach out and talk with each other about our giving. We can be open to organizations and service delivery methods outside of our comfort zones because they work, and because they do so in a way that reflects our shared wishes and prayers for a more united and cared-for country. We invite you to challenge your implicit biases and get uncomfortable while opening your eyes and heart to the love of mankind, especially when it doesn’t look or sound like you.

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Dilnaz Waraich is the President of the WF Fund, a national leader in uplifting marginalized communities in education, human services, and religious pluralism. Read more about her.

Lauren Janus is COO and Director at Phīla Engaged Giving. Read more about her.

Transforming Wealth into Justice: A Call to High-Net-Wealth Changemakers

Image by RDNE Stock Project via Pexels

“The arc of the moral universe is long, but it bends toward justice.” — Dr. Martin Luther King Jr.

By Mark Greer

The new administration is the latest threat in the rising tide of challenges to our collective pursuit of justice and equality. Hard-won programs that support racial equity, environmental stewardship, and inclusive hiring practices are under attack. Immigrants and asylum seekers face dehumanizing policies. Efforts to pull back from global climate commitments threaten our planet’s future, and social programs designed to offer marginalized communities a hand-up—not a handout—are being demonized. Philanthropy increased its commitments to equity in 2020 during the calls for justice post the murders of George Floyd, Breonna Taylor, and countless others, but has since pulled back from those commitments, folding to political and social pressure. 

In our work advising philanthropists, families, and foundations, we have witnessed firsthand what happens when people of means choose to align their wealth and influence with the pursuit of justice. As the Great Wealth Transfer unfolds—an estimated $84 trillion in assets changing hands over the coming decades, of which $12 trillion is expected to flow into charities—we are at a critical crossroads. Will these resources exacerbate inequality, or will they actively dismantle it?

Many of our clients have embraced the latter path, transforming their giving to be more justice-centered. They no longer view philanthropy as a simple act of benevolence but as a commitment to shared power—a way to elevate community leadership, invest in systemic change, and create tangible pathways for equity and opportunity. By refusing to be swayed by political or social pressure to scale back their efforts, they are seizing this historic moment to make philanthropy a force for justice, solidarity, and hope.

Why Justice-Centered Philanthropy Matters

1. It Fosters Deep Community Engagement
   When high-net-wealth families work alongside grassroots organizations, local leaders, and everyday community members, philanthropy ceases to be a one-way transfer of funds. It becomes a partnership—one that amplifies community expertise, meets urgent needs, and fosters sustainable development. This collaboration leads to healthier, stronger communities where every person feels a stake in collective prosperity.

2. It Promotes Shared Power and Collective Action
   Justice-centered donors don’t simply write checks; they share resources, decision-making power, and trust. This approach dismantles the traditional “top-down” philanthropic model, allowing communities to help shape funding strategies and solutions. By diversifying who sits at the table, high net-wealth changemakers can reach better, more inclusive outcomes that benefit everyone.

3. It Benefits All of Society
   Equality and justice aren’t zero-sum propositions. When local economies thrive, education gaps close, and healthcare becomes accessible, the ripple effects bolster the entire social fabric. Businesses find stronger workforces, neighborhoods become safer, and civic participation flourishes. Justice-centered philanthropy is an investment in shared well-being, ensuring that the next generation inherits not only wealth but also a more just world.

A Collective Opportunity

With vast resources at their disposal, donors are positioned to be a catalyst for transformation. Justice-centered philanthropy isn't just about “doing good”—it’s about cultivating shared power and creating conditions where everyone can thrive. As more philanthropic dollars transfer into younger hands and new decision-makers, we have a singular opportunity to address long-standing inequities head-on.

Let’s commit, together, to bridge gaps—not widen them. Let’s choose solidarity over complacency. In doing so, we reinforce what history has shown time and time again: when you invest in justice, you invest in a future where everyone benefits.

Now is the moment to transform wealth into justice. May your leadership and generosity stand as a beacon that lights the way for others, ensuring that this pivotal wealth transfer champions not only financial growth but the growth of our shared humanity.

Practical Steps to Center Justice in Your Philanthropy

1. Listen and Learn

• Engage with grassroots groups, community organizers, and local thought leaders.

• Organize listening sessions or site visits to deepen your understanding of the issues you care about.

2. Align Resources with Values

• Conduct a portfolio or grantmaking audit: Do your investments and grants genuinely reflect your equity commitment?

• Integrate environmental, social, and governance standards or impact investing strategies where appropriate, ensuring your wealth builds justice rather than undercutting it.

3. Elevate Community Leadership

• Invite community representatives to serve on advisory boards or grantmaking committees.

• Develop multi-year funding strategies that give organizations the stability to innovate, scale, and collaborate over time.

4. Practice Solidarity, Not Charity

• Move beyond one-time gifts. Provide unrestricted or flexible funding that enables frontline organizations to adapt and grow.

• Amplify underrepresented voices in public forums, media campaigns, and policy conversations, using your influence to highlight critical issues.

5. Stay the Course Amid Pressure

• Political tides shift. Resist calls to dilute your commitments or retreat from DEI, ESG, or equity-focused initiatives.

• Remember Dr. King’s words: “The arc of the moral universe is long, but it bends toward justice.” By holding firm in your dedication, you help bend that arc more swiftly toward equity for all.

Restoration or Displacement? Altadena and the Racial Wealth Divide in Disaster Recovery

by Janell Turner

Photo by Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images

The West Coast has been home for almost 40 years, but I still claim my Louisiana roots. Like many southern Black families of the post-civil rights era, my father and his seven siblings sought refuge from the oppressive conditions of the Deep South in California’s picturesque San Gabriel Valley. Only in adulthood have I truly come to appreciate and understand their reasons for leaving—and that my family was part of the Great Migration, a sweeping movement from 1910 to 1970 in which more than six million African Americans left the rural South in pursuit of the American dream. They carried with them the financial resources, knowledge, and youthful energy needed to rebuild their lives in the North.

All of my father’s siblings embraced this opportunity and, one by one, made the journey to Altadena, Calif., except for one devoted daughter who stayed behind to care for the elders and “hold down” the Turner family legacy. I often think of the countless relatives across the South, like my dear aunt, who stayed during this seismic shift in American history. I wonder what they endured, adapting to profound social, cultural, and political changes while grappling with the loss of family. I imagine the bittersweet tension—mourning the distance yet understanding, with heavy hearts, why their loved ones had to go.

For those who left, northern cities offered a glimmer of hope—a chance to break free from the shackles of economic oppression. Yet even in these new environments, barriers remained. As michele storms, Executive Director of ACLU of Washington, shared during  a recent conversation, systemic oppression has not only stalled but, in many cases, eroded Black wealth accumulation over generations. 

Still, many Black families found pathways to greater mobility. They secured higher-wage union jobs, opened businesses, and gained better access to public schools and colleges. In places like Altadena,  Black-owned restaurants, barbershops, law offices, and medical practices flourished. Churches and Black neighborhoods became hubs of education, social support, and economic empowerment—an undeniable contrast to the sharecropping and domestic servitude that had defined life in the South.

Despite redlining and other structural barriers, wealth accumulation gradually led to homeownership, giving rise to a strong Black middle class in communities like Altadena and Pasadena. But on the morning of January 8, 2025, I woke to messages from friends and relatives—photos of smoke-stained chimneys standing alone among the ashes of homes that once housed generations. My childhood home on Lincoln Avenue, just blocks away from Jet Propulsion Laboratory, a well-known NASA facility, was one of the few homes that remained standing. Across the street, dear family friends had sold their home just seven months before the fire. They were grateful to have moved in time but heartbroken for their former neighbors and the family who had just begun to make it their own. These historically Black neighborhoods had been devastated by the LA wildfires, and the damage may be irreparable.

As we begin to rebuild, I worry about the fate of these communities. Will they ever be restored to their original prominence? Or will capitalism, when left unchecked and insatiable, drain the oxygen from the air, turning Altadena into yet another gentrified suburban core?

michele and I took a deep dive into this topic, exploring the impact of natural disasters on minority communities and the measures being taken to achieve equity. Our conversation was rich with history, urgency, and the human cost of systemic neglect. She painted a picture of what it truly means to rebuild—not just with bricks and mortar, but with an eye toward justice and restoration. The contrast between communities like Altadena, where working-class families are struggling to stay afloat, and affluent neighborhoods like Pacific Palisades, where recovery is often a matter of well-insured assets, underscores the deep inequalities in how wealth—and therefore recovery—is distributed.

michele emphasized that true restoration requires more than just emergency relief; it demands a reckoning with historical injustices and a commitment to long-term investment. She pointed to the Biden-Harris administration’s racial justice project, Executive Order 13985: Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,  as a foundational effort to address structural inequities. Signed on Biden’s first day in office, the initiative acknowledges that disparities in wealth accumulation, homeownership, and economic resilience are not accidental—they are the product of policies that have, for generations, favored white wealth-building while systematically excluding Black and brown communities. This order was reversed by the Trump-Vance administration on their first day in office, January 20, 2025.  

In the wake of the LA Life fires, GoFundMe campaigns emerged overnight—a testament to the power of individual fundraising, but also a glaring reminder of the gaps in philanthropy. While philanthropy can play a crucial role in disaster recovery, the reliance on crowdfunding highlights the absence of comprehensive social safety nets, leaving many survivors to piece together support on their own. The burden of rebuilding shouldn’t rest solely on individuals and their personal networks; there must be a broader commitment to public and philanthropic investment in communities that have long been denied resources.

Recognizing this urgent need, our team at Phīla took great care to compile a resource list with vetted organizations, giving opportunities, and additional reading on equitable disaster recovery. While we typically wouldn’t direct donors to crowdfunding campaigns, in the moment, they’ve become a necessary tool for immediate relief. Therefore, we’ve included hyperlinks to individual campaigns alongside more traditional philanthropic avenues to ensure resources reach those who need them most. 

As michele noted, even giving at this level cannot replace systemic change. She underscored the importance of restorative practices as a framework for addressing these disparities. Along those lines, here are specific things that philanthropist can do:

• Invest in Black and brown homeowners: In Altadena, for example, this might mean giving directly to local residents, ensuring they can rebuild and remain in their communities rather than being pushed out by predatory developers.
  
  

• Co-fund equitable rebuilding efforts in wealthier communities: In the Palisades, where recovery efforts are more robust, how might wealthier residents and institutions take responsibility for supporting equitable rebuilding efforts across the region.
  
  

• Invest in storytelling to help drive change and motivate fellow philanthropists to give more: Storytelling is key to amplifying impact and unleashing the kind of transformation we need in the world, as noted by Phīla’s CEO Stephanie Ellis-Smith in a 2024 Forbes article, Urgent Invitation to Listen: Storytelling for a More Equitable World by Esther Choy.  

Storytelling, as we discussed, is central to this work. michele reminded me that narratives shape policy, and the stories we elevate—of families fighting to hold onto generational homes, of communities organizing mutual aid in the absence of government support—can drive change. These stories must be told not as tragedies, but as calls to action. If philanthropy is to be more than just charity, it must embrace its role in reshaping these narratives and advocating for systemic solutions that go beyond individual giving.

michele left me with a powerful reminder: the fight for justice is as much about memory as it is about the future. The lessons we learn from this moment will determine whether we continue to perpetuate cycles of displacement and inequity or finally commit to true restoration.

2024 Year in Review

Image by Rakicevic Nenad

By Stephanie Ellis-Smith, Founder and CEO

As 2025 gets underway there is a widely shared view that we are living in uniquely perilous and uncertain times. This feels true – but  I confess I’m always a little nervous at the start of a new year. What challenges will I and our team at Phīla have to overcome? What opportunities will come our way?  How will we adapt if the landscape changes? Trying to foresee all the possibilities is a little scary and plenty exhausting. 

A practice that grounds me is to use the start of a new year to be grateful and give thanks. Towards that end, I want to share a few highlights of what was a gratifying 2024 for Phīla. Reflecting on the accomplishments of my colleagues and our amazing community of partners fills me with energy and optimism about what lies ahead and motivates me to hit the ground running to have the greatest possible impact for our clients and the important causes that so desperately need their funding. 

2024 Wins

The most important measure of our success at Phīla is whether our clients increase their giving once they start working with us. While many factors influence each client’s generosity, a few variables are always important: creating a workable giving plan that all participants feel connected to and responsible for; increasing our clients’ knowledge of issue areas and the nonprofit sector so they feel more confident in their decision-making; participating in meaningful collaborations with allied professionals in estate planning, financial management, and taxation to help our shared clients make the most strategic and thoughtful decisions. 

We’ve been privileged to witness and share in many of our clients’ philanthropic accomplishments, but a few anecdotes showcase the best of our work in 2024: 

• After decades of traditional giving, an inheritor couple wanted to do more. We partnered with them on a comprehensive and reflective review of their goals and how to achieve them. Ultimately we helped them embark on an audacious plan to donate the majority of their wealth in 10 years and increase their annual giving budget from $500,000 to over $20M, a 40x increase!

• An inheritor was inspired to significantly draw down their donor advised fund by distributing $2M over a four-month period, the most they’ve ever given.

• A retired software executive developed plans to distribute $5M after having never made any philanthropic investments. 

• A private equity executive made their first foray into underwriting by funding a public television program, giving it a new season.

While these numbers are important, we also care a great deal about HOW our clients give. Qualitative measures reveal how our donors are interacting with the sector and what they are doing to diminish power imbalances and advance equity in the field. Since working with us, 100% of our clients have adopted at least two of the following trust-based philanthropic practices:

• Adopting participatory grantmaking models that empower community decision-makers 

• Making multi-year, general operating support grantmaking

• Simplifying and adding transparency to grant application and reporting processes 

• Reviewing and committing non-financial assets to support organizations and sector leaders (e.g., artwork, land transfers, network introductions, etc.)

Internal Transformation

“Transformation” has always been important to Phīla’s mission. We speak most often about transforming the practices of our clients so they are more active and intentional with their philanthropy. But 2024 was a year of internal transformation for us as well. We increased our focus on the how and why of our work. We invested in ourselves by crafting a refined business strategy that leverages our strengths to provide excellent service to our clients and offer a supportive work environment that honors the talents of our team. 

We studied our biggest wins so we can understand, document, and replicate “the Phīla way.”  We looked at what didn’t go as expected and moments when we could have done better. Taking the time to learn from our mistakes taught us where to dedicate more time and effort.

We went on a hiring spree and brought on a few of the smartest people in philanthropy who are well-equipped to share their expertise, using their hearts as well as their heads to steward people and communities. We’ve evolved from a one-woman operation to a team of dedicated experts who are steering Phīla toward the future with wisdom and drive. 

Our team is comprised of 88% women, 66% people of color, and 22% members of the LGBTQ+ community. Our team not only reflects our country’s diversity, it represents populations that are coming into more wealth, showcasing the unique value-add Phīla offers to budding philanthropists.

Thought Leadership

We continued to expand our online presence and thought leadership in 2024. As our business has grown, so has the number of people who want to know what we are up to and hear our perspective on developments in the field. One clear indicator is our monthly newsletter Insights in Philanthropy, which has increased the number of subscribers by 23% .We regularly get comments from folks expressing how much they enjoy receiving it, which is extremely gratifying. Thank you! Insights is truly a team effort and each of us are grateful for our readership. Our followers on Instagram and LinkedIn have grown by over 80% and traffic to our website  increased 40% from 2023. 

We were also thrilled to have two of our pieces published externally. The first was on the growing trend of major funders joining nonprofits in fundraising activities in The Stanford Social Innovation Review, and the second was our take on what the 2024 election may mean for philanthropy in The Chronicle of Philanthropy. 

We also began to share our perspectives through webinars on political giving and the New Economy. Creating webinars was a new activity for us and it was exciting to bring field leaders together to share timely information with our audiences. We hope to continue presenting webinars in 2025 so please let us know if there are topics you’d like us to cover!

Looking Ahead

We continue to create a network of strong supporters and dedicated clients, all of whom have had a tremendous impact on our growth and success. As I look ahead to the new year, I am excited for what’s ahead. We have a few particular priorities at Phīla: 

• Expanding and enhancing client service offerings:  Responding to our clients' needs, we're creating more comprehensive and tailored solutions, like foundation management services and grantmaking oversight.  

• Field building and thought leadership: We aim to deepen our impact within the sector by fostering growth, sharing our insights, and contributing to a stronger, more innovative philanthropic landscape. 

• Embracing technology and fostering creative partnerships: We're exploring new technologies and innovative collaborations to amplify our impact and bring fresh perspectives to our work.

As a team, we will be leaning into our vision:

To foster transformation–both within the philanthropic sector and the families and organizations we serve. We work toward a world where philanthropy is a nurturing and equity-centered practice that releases wealth to the people and communities who need it most. 

This goal truly energizes me and helps me to focus more clearly on the work ahead. If this animates you too, join us in the effort. 2024 was a banner year for Phīla, but it’s only the beginning. 2025 will be a moment for opportunity and we are grateful for our clients, partners, and supporters (current and prospective) who believe in the power of philanthropy to change lives for the better.

3 Questions to Ask in This Era of Trump and Uncertainty

By Stephanie Ellis-Smith

“Not everything that is faced can be changed, but nothing can be changed until it is faced.”

— James Baldwin

Photo by Julie Aag

It has been less than a month since Donald Trump won the 2024 U.S. presidential election, and his inauguration is still more than eight weeks away. 

Given the freshness of the news and the uncertainty of what lies ahead, I am struck by the wave of commentators confidently declaring exactly why Trump won and detailing exactly what philanthropy and the nonprofit sector must do to prevent the awfulness they are certain is to come.  

I tend to agree with Adam Grant that the future is unknowable and that humans — myself included — are terrible forecasters. Our brains are programmed to seek evidence that validates our beliefs, and in times like this, we must be especially careful with our predictions. 

So rather than share advice based on my own guesses about the next four years, I will  share three questions that I believe all of us — advisers, donors, nonprofit leaders, fundraisers — should be asking now. 

By doing so, I am following the advice we give to our clients when the way forward is unclear: We get curious. We summon the courage to face uncomfortable truths head on. And we resolve to act differently based on what we learn. 

Do we have the stamina to fight for justice over the long haul? 

Much has been written about the cascade of “rage giving” and the resistance movement that followed Trump’s first election in 2016. It remains to be seen whether a similar surge of activity is underway now. There is certainly value in quick-response gifts that fund legal and policy efforts to advance causes that donors care about, particularly in areas like immigrant rights, racial justice, and environmental protection, where Trump has signaled loudly that he plans extreme rollbacks. 

But donors and nonprofit leaders would do well to pace themselves and plan for a long, drawn-out battle. If we learn nothing else from this election, we should heed what real resistance looks like. It’s patient, it’s organized, and it’s unrelenting in its pursuit of its goals. 

We need stamina and patience to keep pushing on creating an equitable and truly democratic nation. While we have a few long-game wins of our own (see marriage equality), we can still be too quick to follow shiny new theories or fads that may be great in a moment but can still pull us off course. Will our multi-factioned coalition of social justice practitioners be able to find a pace that is slow and steady enough to be sustained over many decades, yet with the same sense of urgency that moves us forward?

Philanthropy was meant to fund the gap left from government services. What do we do if the gap becomes a canyon?

While we cannot purport to know what the future holds, we can take seriously what we’ve been told about immediate plans for change. For example, we know that Elon Musk and Vivek Ramaswamy will team up to run the Department of Government Efficiency, a new agency to cut “waste” from other federal agencies. They and their acolytes are signaling drastic cuts or even the elimination of the Environmental Protection Agency, the Department of Education, the National Endowment for the Arts, and more. 

Taking these announcements at face value, donors and nonprofit leaders must plan how to serve their communities in these crucial program areas without their federal government partners. For example, what does the conservation and environmental movement look like with no EPA? Philanthropies  often promote  approaches that incorporate  lofty and sometimes academic theories of change, celebrating those that are laser-focused on fixing “root causes” or changing entire systems that contribute to intractable problems — while overlooking the need for day-to-day support.

If these agencies are dissolved and their funding dries up, donors will need to invest more in direct service while also devising new strategies for longer-term change. We may face unprecedented and urgent needs for basic assistance in our communities.  What role will philanthropy play to, at minimum, take care of the daily needs of our fellow citizens? What could the modern version of old-school “charity” look like?

If a hole is left by the withdrawal of government funding, will we allow ourselves to organize and fund in a way that is responsive to our communities without judgment, and without unhelpful infighting about what “good” and “effective” philanthropy looks like? 

The rich are likely to get richer. What will they do with the surplus capital?

Trump gave tax breaks to the wealthy in his first administration with the 2017 Tax Cut and Jobs Act and has signaled his intention to do more of the same. Investors are seeing their portfolios soar since the election. The one prediction I am willing to make is that wealth inequality will worsen as the rich get richer. 

Many philanthropists will have more resources than ever before. Call me a cynic, but I’m not sure their gains will translate to bigger gifts to the sector. While I hope I am wrong, this election was won by stoking fear in the electorate. The unpredictability of what the Trump administration may do, and when and how, likely means prolonged periods of unease and uncertainty ahead. 

Will the wealthiest take that as a sign to squirrel away more of their assets for themselves as a hedge? That’s a tough question to ask, and the answer may be even harder to hear, but history (and human nature) indicates that periods of extreme uncertainty and “scarcity thinking,” drive people to act more in their own self-interest rather than for the common good. 

I’m grateful that there are so many community-minded donors who care about underserved communities and underresourced issues. I hope their numbers rise in the coming years. But it would serve us well as a sector to understand the emotional and economic motivations that drove the election’s outcome and to ask how we may engage an increasingly fearful, and at times self-interested, population. 

No doubt there will be many more questions to ask and hard truths to swallow in the weeks and months ahead. But for now, my message to my peers and colleagues is to face our future with courage. We are such an optimistic bunch; we have to be to do what we do. We must have faith in our convictions and that we won’t be shaken off course, even when we’re forced to ask tough questions of ourselves. 

Finally, to all indefatigable donors and community organizers out there (especially to my Black sisters), make time for rest. We are in it for the long haul, and whether the electorate at large recognizes you for it or not, you make this world go around, and we would not be where we are today without you.

(Originally published in The Chronicle of Philanthropy Nov. 21, 2024)

Year-End Giving for Uncertain Times

By Lauren Janus

“I Voted” stickers. Image by Element 5

At times, this fall seems almost normal. The leaves are turning, plastic ghosts and spiders are everywhere, and pumpkin spice again abounds. This season always arrives with a crisp breeze of anticipation as those of us who work with donors and nonprofits approach November and December, when the vast majority of charitable giving occurs as part of the annual year-end giving tradition.

But of course, this year isn’t normal. Our country faces one of the most divisive and potentially destabilizing presidential elections in generations. In a few short days, we’ll face the outcome of this election and get a taste of how our country will move through the decision–whatever that decision is. 

As we as a country charge headlong, hat pulled over ears, raincoat belted, into the political process, we at Phīla are increasingly asked—by clients, colleagues, and family members—how one’s giving should change, or not change, to meet these uncertain, deeply unequal, and often frightening times. Here are my answers:

Start by taking honest stock of your 2024 giving using an equity lens. The inequality in this country, and around the world, is deeply rooted in systems that favor certain groups and economic systems. Philanthropy is both a consequence of this inequality (people with more have more to give away) and one lever for righting the ship or creating more equal outcomes. But just like where you spend your money matters, where you give it matters as well.

The majority of our client engagements start with a clear-eyed, numbers-don’t-lie look at where the donor has been giving. It’s always an illuminating exercise. Inevitably, a donor will be shocked to know they are giving so much to certain issues and types of organizations (often large, well-known nonprofits) and so little to others.

To do this exercise yourself, set aside an hour or so to go through your gifts for the year. If you have a Donor Advised Fund, that’s an easy place to start. You can also go through your bank statements, email receipts or ask a partner or spouse what they remember. Don’t forget any political gifts and other non tax-exempt gifts you made! In our eyes, those absolutely count. 

As you build your list of organizations and gift sizes, start to look for patterns and gaps. Are you giving substantial, regular gifts to large institutions like private universities and hospitals by default? What about organizations or political candidates your friends (i.e. people like you) recommended? If so, pause and take a moment to think about how these practices could reinforce the preponderance of gatekeeping in fundraising, thereby reinforcing inequitable funding patterns between White-led and BIPOC-led organizations.

Plan your year-end gifts and other philanthropic activities. If you’re like us, the political appeals have been coming fast and furiously to your inbox and text message screen. In a few short weeks, those appeals will be matched by any and every nonprofit you’ve ever given to asking for a year-end gift. When you take a moment to plan your giving, you stand less of a chance of reactively giving more to organizations that have the budget to send you gorgeous appeals. Take time now to think about any gaps revealed by your stock-taking in step one. Are there grassroots groups in your community you might support this year? Are there people outside of your social circle you could ask for lesser-known groups doing important work? Put them on your list. 

At the same time, think more broadly about your year-end philanthropic activities. Are you hoping to get your charitable estate plan updated or address an inflection point in the life of your family foundation? Start thinking about those tasks now and reach out to a philanthropic advisor like Phīla, as well as any legal, financial or other professional advisor. We all get busy this time of year.

Set some goals for 2025. As you begin your holiday and other year-end activities, be sure to set aside some time to map out your giving for the new year. Now’s the time to sit down with family and communicate your giving goals for next year. Do you want to give more to community-based organizations (even if the community isn’t your own)? Can you afford to increase your giving budget for next year? 

Talk with your spouse, children or others important to you about the gifts you know you’ll make and those that may feel unfamiliar but that you want to consider. Now’s also a good time to talk about where you want to show up in 2025 as a volunteer or even simply a dependable advocate.

Importantly, just because the election is over, now is not the time to stop making political gifts. Again and again we hear about democracy-building groups who fear the "post election drop-off" in funding. Many will have to lay off staff in January and some will close altogether. In fact, it's the time between elections when the groundwork is laid for success at the ballot box. Consider signing the "Election Day to Every Day Pledge" and continue to give (or even increase your giving) to organizations doing the hard work of registering voters, challenging unfair election laws and mobilizing communities for the next election.

These next few weeks will be nothing if not uncertain in our country. But as individual citizens, we can support our democracy and our communities by voting, by helping others to vote, and by being thoughtful, intentional and generous in our giving now and into the New Year.

3 Tips for Making It Easier to Choose a Charity

By Jen Shafer, ideas42

Black woman in yellow cardigan carrying a basket of produce. Photo by Kampus.

Donors receive a constant stream of requests for their attention and money. Fundraisers know this, and so they engage in an arms race of sorts, asking more often or more creatively for donors’ support. If the volume of these requests gets too high, it’s reasonable that donors would simply tune it all out. 

When that happens, smaller and equity-focused organizations are often the first to lose out. For example, today Black-led nonprofits only receive 1–2% of the billions of dollars in annual funding provided by foundations and donors. 

That, of course, is a shame for everyone—donors want to support causes they care about, and nonprofits want to tell their story and connect with their communities. One question that could benefit everyone is: How can donors find smaller nonprofits that align with their values? 

This is the question our team at ideas42 wanted to explore through a recent collaboration with Charity Navigator. We started by considering Giving Season, that humming driver of philanthropy spanning the days between Thanksgiving and New Year’s Day. We know that curation—that is, giving donors a tailored set of recommended nonprofits—can help donors connect with worthy nonprofits. Additionally, we have learned through our research that GiveLists are a powerful tool to increase giving, and the curator (and credibility of that curator) makes a big difference. 

We wanted to take it one step further and explore how curation could encourage donors to give to smaller, equity-focused organizations that too often get lost amid the noise.

This question is particularly relevant for rating or aggregator platforms, financial advisors, or even individuals with specialized knowledge about the problems facing an underserved community. Sharing this knowledge with others by giving recommendations can increase the salience of worthy organizations and help donors cut through the noise. 

Based on the lessons we learned along the way, here are our top three tips on curating charitable giving recommendations.

1. Remember why donors need curation.

Two-thirds of donors wish they could give more to causes they support, but there are roughly 1.5 million nonprofit organizations in the U.S. to choose from. Donors experience constant choice overload when selecting a new nonprofit to support, as many organizations are worthy, and it’s difficult to gather enough information to make a decision (or even to determine what constitutes “enough” information).  

This uncertainty can dull the warm glow of giving, and we know that uncertainty can make people less generous, as they use ambiguity as a reason not to give. Curation, then, can help donors feel good.

2. Set your criteria.

Start by considering data availability—what data can be found easily through research or existing tools (like Candid’s demographics API or the Lilly School Equitable Giving Lab)? Then, prioritize characteristics that will signal trust and will help donors map differences between charities. For example, the location of an organization’s headquarters and annual budget could help distinguish a local, grassroots organization from others working in the same space.

Resist the urge to to select the perfect selection criteria. Consistent recommendations of lesser-known organizations from trusted sources can create systemic change. Don’t fall victim to zero risk bias, which leads us to seek to entirely eliminate risk rather than choosing options that present some potential risk but a greater opportunity.

3. Make your list.

Next, put your strategy to the test—which organizations do you want to elevate now? Which organizations might you elevate in the future? When creating the list, you don’t have to pick just one organization to recommend. We know that providing donors with multiple organizations can increase giving, and we recommend including 3–5 options, based on our work with GiveLists. 

As you prioritize, do an equity check—consider which nonprofits may not receive as much attention, and ask for community input, when possible. Make sure your criteria work and aren’t too limiting—don’t underestimate the practical part!

Now you might be wondering, what did these tips yield for our team? Which organizations were on our list when we were working with Charity Navigator? Below are the organizations we recommended in our study.

• Disaster relief:

  • GEANCO 

  • Achungo Community Center

• Health: 

  • California Black Health Network

  • I Will Survive, Inc.

• Social rights:

  • Kua’aina Ulu ‘Auamo (Kua) 

  • Center for Restorative Justice Works

• Specific populations:

  • CARRY

  • New Mexico Asian Family Center

These nonprofits were selected based on a combination of parameters including who they are and how they operate (e.g., small or medium size with annual revenue under $2 million; founded by and serving Black, Indigenous, or People of Color), as well as their presence on Charity Navigator (e.g., active Charity Navigator profile with a 3–4 star overall rating and completion of the Candid Equity Strategies checklist).

Through this work, we learned that donors want to receive recommendations, that recommendations can help channel support to previously overlooked organizations (recommended nonprofits saw a 20% increase in contributions!), and that offering a donation match can increase the likelihood of making a donation to a recommended organization.

For more on this work and how we plan to build on it, check out this one-pager. 

To see the original blog post from Ideas42 and more of their insights, click here.

Funding Rest as Community Care

Silhouette of woman in sunset standing on a hill. Photo by Michael Bruna.

By Celiz Aguilar McClish

My friend was sharing about her recent health struggles as we were walking along a rocky shore on the Puget Sound. We reflected broadly about who has access to care and wellness in the United States, regardless of income, education level, citizenship status, or geographical location. And as an Organizational Psychology practitioner and former caseworker, I can’t help but consider this question in light of the nonprofit workplace. Who has a right to be well at work?

I unequivocally believe that everyone has a right to be well at work. And while every sector has its share of challenges supporting employee well-being, there is a special imperative for philanthropy to prioritize broadly funding wellness within the nonprofit sector. 

Well-Being and Work 

The Center for Effective Philanthropy defines well-being as “as the state of employees’ mental and physical health” and notes that it is influenced by workplace culture and opportunities for growth. Similarly, the field of Organizational Psychology advocates for Decent Work, which is work that provides fair wages, job security, and opportunities for personal growth. When employees are well and can engage in decent work, they are more likely to meaningfully contribute and have longer tenures.

However, the reality for many nonprofit organizations is that their workforce is underpaid, overwhelmed, and understaffed. In a recent report by the National Council of Nonprofits, 74%  of nonprofits surveyed reported job vacancies, with public-facing positions experiencing the most vacancies. And at least half of respondents identified that stress and burnout is a top factor impacting their ability to recruit and retain top talent across all levels of the organization. 

In a study of nonprofit CEOs, The Chronicle of Philanthropy found that, while CEOs love their jobs, the challenges of retaining strong talent, balancing work and life, and fundraising can be too much to bear. One-third of CEOs surveyed said they are likely to leave their position within two years. This doesn’t even begin to scratch the surface of the additional burdens BIPOC leaders face. (See: Women Leaders of Color Are Exhausted. Philanthropy Needs to Step Up). But perhaps most concerningly, the Center for Effective Philanthropy found that 75% of leaders surveyed believe that staff burnout impacts their ability to impact and serve communities. 

Impact to Community 

When nonprofits are understaffed and employees are overworked, programs and vital services for the public are significantly impacted. Specifically, “there are longer waiting lists, reduced services, and sometimes elimination of services,” which can have far-reaching effects on communities and individuals. For example, a delay in housing services could result in a period of homelessness for a client. 

There is also a significant loss of institutional knowledge and shared history when turnover is high. While a challenge in any sector, it can slow progress in a highly-relational, resource-strapped field like the nonprofit sector. I experienced this first-hand as a caseworker for refugees and immigrants when colleagues—who had worked for years to build trust with key community members—left positions and, as a result, took relational knowledge with them. 

Hopeful Paths Forward: Unrestricted Gifts and Wellness Funds

If the problem seems bleak, the opportunities for creating change should inspire. Philanthropy is uniquely positioned to be a partner in creating systemic social change by strengthening organizations and their wellbeing. While there are a myriad of ways that this can happen, we at Phīla recommend unrestricted giving and dedicating funding specifically toward wellness. Both of these giving mechanisms demonstrate trust in the organization and offer much-needed support beyond what is offered through traditional grants. 

Unrestricted giving, a tenant of Trust-Based Philanthropy, allows the grantee to determine where funding is most needed. Grantees may put funding towards building repairs, programming, or salary increases—which are necessary to attracting and retaining staff given that three-out-of-four nonprofits stated that salary competition impacts their staff retention. 

A Phīla client recently supported a nonprofit with an unrestricted gift, reinforcing that the grantee could use the funds as they saw fit. The grantee later shared the impact with us: 

Thank you so much to the [redacted] Family Fund. WE raise our hands up to you all for helping us with our work and giving us your blessing to use it where it is needed most.

One leader also provided this feedback: 

You know it is the first time in years that I have felt like I have room to breathe. Knowing when to take a vacation is not easy in the nonprofit world and I think yesterday was my first real day off in a long time. Thank you all for helping with this necessary day of self-care and healing.

Clearly, unrestricted giving can provide a welcome reprieve for hardworking staff. 

Philanthropists can also engage in funding wellness, which can take on a variety of forms. By strategically funding rest and wellness initiatives, philanthropists can support the longevity and well-being of the nonprofit staff, thereby supporting communities and individuals with better services. 

The Share Fund, a philanthropy supported by Phīla, has an Opportunity Fund that is designated to “benefit the health, aspirations and broader well-being” of the grantee’s employees and is entirely separate from unrestricted funds for general operating expenses. Grantees can spend funding on coaching, professional development opportunities, childcare, fitness classes, or even a trip like one nonprofit used as a way to thank their home health aids. There are so many ways to fund restoration.

When employees are invested in and are equipped to thrive at work, they can engage and contribute meaningfully to their organizations. And what better sector to invest in employee well-being than one that provides vital (read: life-saving, poverty-alleviating, hunger-reducing) services to communities?

In a perfect world, nonprofits wouldn’t need to exist because communities would be self-sufficient and could meet their own needs. But until that day comes, we invite you to strengthen communities by strategically supporting the organizations that serve them. 

Resource: Additional Organizations Funding Wellness

• The Boston Foundation partnered with New Sector Alliance to offer a Leadership Longevity Fellowship to strategically invest in the professional development and wellness of mid-career nonprofit managers. 

• Allstate Foundation offers free leadership development to nonprofit leaders and staff. The foundation also awarded nearly $400,000 in grants for wellness initiatives. 

• The Skillman Foundation has the Well Fund which supports the “wellness and capacity of BIPOC-led nonprofits” serving youth in the Detroit area. Awards support general operating funds, leadership development, and wellness activities. 

• The Seattle Foundation launched the Black-led Joy and Wellness-Fund to combat some of the funding inequities that Black-led organizations face. The fund focuses on supporting the “physical, mental, and emotional well-being of staff at Black-led organizations.” 

• Inspired by conversations with grantee partners, the Imago Dei fund created the Keep the Spark Alive program to combat exhaustion and revive leaders. The program was created to be as “non-burdensome as possible” with rolling applications, quick approvals, and minimal reporting requirements. 

Getting Proximate: Reflections from a Visit to Monroe Prison

By Sewheat Asfaha

Olivia Vanni / The Herald

Growing up in neighborhoods that are predominately communities of color, I've experienced and witnessed continually discriminatory policing. The school-to-prison pipeline was made clear to me at a young age, as I heard stories of family members and peers getting caught in this cycle.

 My first time visiting a carceral entity was in Lumpkin, Georgia, one of the poorest towns in the country. I was on a college service project trip centered around immigration, and the group and I watched a short documentary detailing how private prisons make a profit and therefore have an incentive to keep prisons filled. We drove 3 hours to the Stewart Detention Center, a private prison operated by Corrections Corporation of America. Incidentally, one of the detainees I spoke with was living in my hometown before he was transferred - I couldn’t believe how close to home it felt. In the years following, I continued to sharpen my analysis by becoming more involved with organizing efforts in my community.

The United States has long had the highest incarcerated population worldwide, with roughly 2 million people in jails and prisons. In Washington state, around 14,000 people are held in prisons, with 1,500 of them at Monroe Correctional Complex. 

My colleagues, Stephanie and Sofia, recently visited the Monroe facility with a donor community, One for Justice, which focuses on organizing and supporting the efforts of philanthropists who are committed to reimagining the criminal justice system. The experience was also coordinated by Collective Justice, which is a nonprofit that leads training on restorative and transformative justice practices to equip agencies and individuals with the skills to address harm through community healing. They are one of many organizations working to create new ways of enacting community safety, accountability, and healing outside of the traditional structures of the criminal justice system. When Stephanie and Sofia came to our staff meeting after this visit, their reflections were so moving and thoughtful that I thought to have this interview be my first blog post for Phīla. I hope you appreciate their reflections as much as I did.

***

What was the process like to enter Monroe prison? How did it feel entering the premises?

Sofia: The process to get on the list to be able to visit was challenging and needed registration weeks in advance. We were instructed to bring a state or federal-issued identification. Upon entering, the prison staff kept our documents in exchange for a visitor badge. I noticed feeling anxious about surrendering something that represented my personal freedom in order to enter the space. I also was thinking a lot about my brother who was in and out of jail through much of his life, up until his passing. I wondered how it felt for him knowing he would spend months behind locked doors like these, and that made me enter with a feeling of being a sister.  

Stephanie: It was tightly controlled and very organized. We were a group of about a dozen, and came on one bus. We had to move as one group, and pause in each chamber and wait for doors to lock behind us and unlock in front of us to get through. It was a medium-security prison, but every space had guards watching. Once we were on the grounds, I noticed a community garden and a bench. I wondered what is the process of being able to sit on this bench in the garden. How would an inmate get to access a meditative space like that and what bureaucracy is required?

Once you entered, tell me about the group you met with and the individuals. What stood out to you from the conversations you had? 

Stephanie: Our group met with a group of 12 incarcerated men. Guards gave us explicit instructions to only give handshakes and no hugs. There was a nervous energy, myself included, but someone mentioned just how significant it was for people from the outside to visit and I think we all felt how special it was that we were there. 

Sofia: A member of Collective Justice opened the circle with a grounding exercise, which they typically use in their justice circles as part of the Healing Education and Accountability for Liberation (HEAL) program. A question was posed to the group - “what brings you here?” There was a mix of responses, and we got to hear a piece of everyone’s story.  A common theme was hearing multiple generations of family members going into prison and experiencing the carceral systems, sometimes simultaneously. Having a high percentage of adult men in prison for long periods of their young adult lives had a notable impact on their communities. Members in the circle shared wanting to break this cycle and support others in this journey. 

Stephanie: We learned about how difficult it is to get programs like HEAL at the prisons. There were many stories of folks growing up in foster care, experiencing violence, and ultimately being abandoned once they become 18. Fundamentally, I wondered - why is it so difficult to access these programs that are so needed?  Why wouldn’t we give folks a chance to heal and make sense of the life they had?  What are the barriers to accessing programs like this? Folks in the circle shared the layered politics that often block these programs from happening. Additionally, a few shared that even wardens and correctional officers are also not in socially stable conditions themselves and are in need of many of the same services that inmates would get. So there is a perceived feeling of resentment that the inmates could get access to therapy, education and healing which feels like a reward when they are there to be “punished”. I found this fascinating and disturbing. 

Sofia: Another thing we took away from the circle was “hurt people hurt people.” So many folks in the circle were victims of violence themselves when they were young, powerless, and vulnerable. They shared how the HEAL program helped them build an awareness of why they might have engaged in violence, but they also continue to build their analysis towards actionable accountability for the harms they created. The participants work to actively disrupt these patterns of harm.

Stephanie: I was struck by how criminal justice as an issue area is deeply intersectional. It is tightly connected to issues of foster care, housing, economic justice and more. What happens when folks leave Monroe? Where can they afford to live? I also learned recently that WA State law prevents released prisoners to stay until morning thus releasing them in the middle of night, in unsafe conditions - without stability or a social safety net, which increases the probability that they’ll return.

What surprised you about the visit? What did you learn? 

Sofia:  I was surprised to hear that since 2020, Monroe had not allowed any nonprofit programs to operate in person and this visit was the first time in years that the community partners had  in person contact with their clients. I learned that DOC is closing a unit at Monroe that has allowed these programs. From a prisoner standpoint, it was shared with us that it felt like a political decision to close one of the “better” units. I also want to highlight that Washington state does not have parole - many people we met were serving 15-year-plus sentences, often from crimes they committed as a youth. I was saddened and angry hearing how so many had spent their entire adult lives imprisoned. 

Stephanie:  I also want to emphasize Washington’s lack of parole. We hear all the time about how progressive Washington is but we often see the opposite. With our regressive tax code, and now learning that we are one of only sixteen states without parole, we see there is still work to do. I wondered how Washington’s criminal justice system measured in comparison to other states. In a conversation with one of the program leaders, they said that advocates were able to make some progress in Washington, but I got the impression that there is still a lot that needs to change.

For folks who have not had much interaction with the criminal justice system, what is something you want to share from the visit?

Sofia: Visits where you get to interact with and hear from people who are the most impacted are important for philanthropists. This visit underscored the importance of getting proximate when it comes to truly understanding social issues. 

Stephanie: You have to be willing to experience discomfort with what you’re witnessing, hearing, and feeling. Criminal Justice is a complicated issue with a lot of perspectives to hold. I thought about my cousin who has been incarcerated and his very complicated life. Sometimes in philanthropy, we try to look for things that are neat and clearcut. The harder thing is navigating all the gray areas, and that’s what this visit brought out for me. How do we acknowledge that harm has been done while also recognizing that the current justice system is cruel, and unhelpful across the board? For a visit like this, folks should be prepared to hold a lot of different emotions.

How did it feel leaving Monroe?

Stephanie: Perhaps it may sound strange, but I felt grateful. It was such an eye-opening experience and I learned so much. It reinforced for me how important site visits are to hone one’s understanding of issues.

Sofia: I felt humbled by this experience. I reflected about how hard everyone we met was working to be accountable and heal themselves. I also thought about how being in prison alone does nothing to rehabilitate - a time sentence with no investment in a healing process does not really help the communities or people who have been hurt. I left wanting to continue to learn more, and gained an even deeper motivation to connect with clients who are responding to the urgency of criminal justice. I’m glad that groups like One for Justice are convening philanthropists to reimagine the criminal justice system.

***

Centering voices of the most impacted is essential to understanding solutions to social issues. In the realm of criminal justice, several barriers disrupt any connection to incarcerated communities and many restrictive practices continue to limit nonprofit program work. Yet, organizers continue to be creative and persistent in reaching their base while forging new paths of accountability and healing.

As you continue your philanthropy journey, I hope you can reflect on what it means to stay connected to these issues, and what it can look like for funders to work alongside community partners towards a justice system that is truly restorative. 

Phīla Recommended Summer Reads

Photo by Link Hoang

By Sofia Michelakis & Celiz Aguilar McClish

The long days of summer bring endless invitations. There is a persistent beckoning to pursue joy and delight in life’s simple pleasures. Dare we submit that watermelons taste sweeter, birds sound happier, and the stars gleam brighter during the summer.

The long days of summer also tempt us to slow down and let our minds wander. During warm afternoons and time spent in nature, we have opportunities to pause and reflect, our minds thankful for the reprieve from frequent business. New ideas can take hold as we make space to observe, listen, and imagine. 

As you look towards the warm months ahead, the Phīla team invites you to peruse our curated reading list that’s sure to cultivate joy, challenge ideas, and invigorate your mind. This year’s edition of our Annual Recommended Summer Reads has a little bit of everything - dynamic writings on rest and delight, the journey of women in philanthropy, and narratives from the diaspora. Allow yourself to be surprised by what emerges as your new favorite summer read! 

Our Recommendations:

Sewheat Asfaha: I read Home is Not a Country by Safia Elhillo through a book club organized by Sudanese Diaspora Network, which is a global hub to unify, mobilize, and empower the youth toward a better, more sustainable Sudan. This work of fiction is a vivid portrait of the diaspora experience, weaving in themes of nostalgia, displacement, connection to culture, and belonging. We follow the journey of Nima, who is a middle school aged Sudanese girl growing up in the states with her single mother. She navigates her identities as an American born second generation immigrant, continuously reflecting on who she would have been had she been born in Sudan. Elhillo's poetry is striking to read, creating a cinematic and deeply personal experience for the reader. Through magical realism, we are able to gain a deep reflection of identity, and an appreciation of "who we are and who we could be, and the dangerous and beautiful place in between."

Stephanie Ellis-Smith: I recommend The Red-Haired Woman, by the Nobel Prize winning author Orhan Pamuk. I recently had the pleasure of taking some time off for family time abroad and I wanted a novel to get lost in. I’m a sucker for a good story and intricately woven tales; Pamuk did not disappoint. This dreamy and literary novel, taking place in contemporary Istanbul, is about a series of tensions: East versus West, fathers versus sons, youth versus experience, and the secular versus the sacred. It was a beautiful read that compels one to think about how we as humans deal with personal hardship and uneasy relationships with those we are closest to. As far and distance as Istanbul is from Seattle in many ways, it is yet so very relatable and imaginative.

Mark Greer: As a millennial steeped in the world of philanthropy and social impact, I am always fascinated by profiles of the next generation of donors and how we think about giving from both practical and heart felt approaches. Generation Impact: How Next Gen Donors are Revolutionizing Giving, written by colleagues in the philanthropic advising field Sharna Goldseker and Michael Moody, reveals how next gen donors are driving impact with their giving in deep partnership with the communities they are seeking to invest in.

Celiz McClish: Ross Gay is back with more delights! In The Book of (More) Delights, Gay chronicles his daily delights throughout the course of a year. The essays are short, poetic, tender, and, put plainly, just delightful. I would read his essays in the morning, before bed, during my lunch break, and anytime in between. His observations on daily life and the beauty that exists on this earth is such a welcome reprieve from the constant business that seems to surround us. 

I'm drawn to ideas that invite us to rethink the conventional. In The Other Significant Others, NPR's Rhaina Cohen encourages the reader to consider how friendships might be able to have a larger, more significant footprint in our lives. She highlights stories from individuals who have chosen to own homes, co-parent, and care-give with friends. While people across America may be experiencing a greater sense of loneliness and disconnectedness, it may be worth rethinking the expansive possibilities of friendships in our lives. I highly recommend this book as someone who lives in a communal household and believes in the power of community. 

Sofia Michelakis: Ordinarily a fiction lover, I’m stepping outside of my familiar boundaries with two nonfiction recommendations this summer! A book that really spoke to me this year is Rest as Resistance, by Tricia Hersey. Through a blend of personal storytelling and economic analysis, Hersey joyfully reminds us that rest, healing and repair are prerequisites for Black liberation and should not be viewed as a luxury. While reading this book, I'll confess that I did take several naps. Not because the book exhausted me or was boring, but rather, because I was invited to listen to my body and what it needed. I would wake up more energized and inspired, feeling more empowered to return to my work with clients to advance racial equity and economic and social justice.

Second, I learned about The Guarantee: Inside the Fight For America's Next Economy through an Aspen Ideas Book Talk that author Natalie Foster gave recently. I've been interested in the guaranteed income movement and have been looking for a resource to learn more. Foster is a leading architect of the movement to build an inclusive and resilient economy. Through this book, she elicits what's possible and how we have the power to transform systems and co-create better realities for our communities.

Sonia Nussbaum: I found The Reluctant Fundamentalist by Mohsin Hamid on the shelf of a Little Free Library. After a few chapters, I knew it was one of those moments of being in the right place at the right time! Over the course of a meal and tea, Changez, our narrator, has a conversation with an American man in his home of Lahore, Pakistan. He shares bits and pieces of his life story—moving to the United States from Pakistan for school and work, falling in (and out of) love with people and places, and attempting to come of age on your own while people are defining your identity for you. This book is told as a "frame story", which also makes it rather unique!

Janell Turner: As a philanthropic advisor, it's hard not to get engulfed in personal stories. Storytelling is at the heart of philanthropy, connecting founders to their missions and illustrating the transformative impact on beneficiaries. In The Moment of Lift: How Empowering Women Changes the World, Melinda French Gates bares her soul! She offers an unforgettable narrative of her own "becoming," weaving together deeply personal reflections about her wealth, finding her voice as a woman in philanthropy, and providing a platform for voices and stories of women worldwide who have faced unimaginable harm and neglect. This book touched my heart so deeply and has sparked thought-provoking conversations with many of my clients--it's a must-read for women who are defining their why and leaning into their purpose.

A Night to Remember

By Stephanie Ellis-Smith

Last week was a monumental week for the team at Phīla and it was capped last Thursday night in the best way possible—winning an award!  

First, a little backstory to set the stage. Lauren and Mark led a beautiful family board meeting that shepherded in a new generation to giving, Sofia returned from Abu Dhabi where she attended the AVPN Global Conference representing one of our clients, and Janell was in New York to attend Women Moving Millions. Meanwhile, I was in DC to attend the board retreat for the National Center for Family Philanthropy. But on Thursday, I did a Joe Biden and took my first the Acela trip from DC to New York to meet up with Janell. Needless to say, it’s been HECTIC for team Phīla.

Stephanie and Janell holding the Philanthropy Advice Award

Janell and I met up that evening to join many of our outstanding peers in New York City to attend the Family Wealth Report Awards. This black-tie event at The Mandarin Oriental Hotel was a stunner. The moment we got off the elevator on the 36th floor, the buzz from the crowd was practically deafening! People we’re clearly pumped to be there.

We were seated at a table of incredibly interesting people: an art advisor, personal insurance executives, and, most interesting, two product leads for a company that automates work-flow processes for alternative investments. (It’s like a different language). When our name was called, everyone at our table erupted in applause and grabbed our phones to capture photos of the moment that I get to share with you here. What an experience!

This award recognizes the best of professionals in North America serving ultra-high net wealth clients. We were honored to receive the award for our innovative, client-centered approach to philanthropic advising. Our team, clients, and partners recognize the distinctive quality of our approach—and now, so do many more. This high praise would not have been possible without the unwavering care and commitment of my team and the trust and collaboration of our incredibly generous clients.

Since our inception in 2017, we have been on a relentless pursuit of excellence, guided by a vision to help donors be active participants in creating a more just and equitable world. Phīla Engaged Giving is proud to be among the leading lights in the field working to shape philanthropy into a life-giving and equity-centered practice. We look forward to celebrating more victories with you.

Rethinking Political Giving: A Holistic Approach to Philanthropy

By Stephanie Ellis-Smith

Demonstrators at a protest waving American flags.

For years, the IRS's tax regulations have inadvertently compartmentalized charitable giving and political contributions in many donors' minds. At Phīla, we challenge this separation, advocating for a more integrated approach to social impact across various giving avenues, including direct donations, foundation grants, and even investment strategies. Our focus is to help individuals align their wealth deployment with their values, extending to political giving as well.

In January, when we surveyed our readers on philanthropic giving trends, engagement in democracy emerged as a top priority. Respondents expressed a strong desire for access to expertise and learning opportunities for effectively allocating their political giving in this very consequential election year. Responding to this demand, Janell Turner and Sofia Michelakis organized Political Giving for Progressive Donors, a webinar and companion handbook offering a comprehensive overview of the political giving landscape and strategies for a donor to make a difference. As I watched the webinar live, I was struck by just how much knowledge is out there but inaccessible to the average donor. With deep thanks to our panel of experts (Alexandra Acker-Lyons, Dionne Foster, Kevin Geiger, and Jamie Van Horne Robinson), the information is out there. Here’s a very high-level overview of what you can expect.

The webinar begins with practical advice on setting a budget for political giving and strategically allocating funds. Panelists address common client queries such as integrating political giving with philanthropic goals, determining budgetary allocations, and navigating the choice between local and national contributions. Additionally, they shed light on the nuances of utilizing different giving structures, including c3, c4, or PAC dollars.

Moving forward, they delve into the impact of investing in candidate races and supporting key local ballot initiatives and election infrastructure projects. Dispelling doubts about the efficacy of individual contributions, the panelists assure that every donation counts and share insights on maximizing impact.

Further, we highlighted top considerations for donors, including core candidates, critical initiatives, and organizations deserving of support in the current election cycle. Addressing questions about donation limits and defining major gifts, we provided clarity to empower donors in their decision-making process.

As we look beyond the 2024 election, our panelists provide valuable advice for preparing for the future of democracy, emphasizing the need for long-term investments to fortify our democratic systems for generations to come. While they may have only scratched the surface, understanding the ongoing reform efforts and strategic focus areas is crucial for shaping a resilient democracy.

At Phīla, we advocate for a holistic approach to philanthropy, recognizing that political engagement is integral to effecting systemic change. We're committed to breaking down silos and fostering a more integrated approach to philanthropy and political engagement. By aligning values with actions, we can collectively drive positive change and safeguard the principles of democracy for all. Thank you for joining us in redefining the boundaries of philanthropy and shaping a brighter future for generations to come.

2024: Noteworthy Trends in Philanthropy, Part Two

Photo by Jon Tyson

By Sofia Michelakis

We are thrilled with the response to our first three trends last month–the rise of financially independent women, the importance of democracy giving, and the impact of AI on society. Our survey is still open for you to share your thoughts, including what resources would be most useful. So far, engaging in Democracy is slightly edging out the other two topics for our readers, so we are preparing a giving guide for donors this political season. If you’d like to receive a copy, email Sonia to register your interest. 

And now onto Trends 4 and 5, both of which are especially resonant during Black History Month. Combating DEI Fatigue and Wealth Supporting Racial Repair are growing methodologies for how givers are addressing racial equity and justice. 

Trend #4: Combating DEI Fatigue

Inside Philanthropy found mixed results in their study on whether the billions in philanthropic pledges to DEI and racial justice in 2020 following George Floyd’s murder have come to fruition. Simultaneously, there are large retrenchments on DEI in corporate America. And of course, last summer’s Supreme Court ruling on affirmative action in Students for Fair Admissions is another setback for advancement on closing racial gaps in education. 

We don’t believe that the Students ruling should cause individuals and families to be concerned that giving plans to promote racial equity will actually be threatened. But warnings that the Students ruling could get extended to race-conscious funding decisions, scholarship programs, and other areas could give license to excuses for cutting back on philanthropic racial equity programs. This larger social context and culture of waffling around DEI has an impact on individuals and families and the way they give. We suggest that givers begin with a thorough examination of what kind of impact their giving has on communities of color and who benefits the most by their decisions. 

We have been sought out by many individuals, families, and donor collectives to gain practical learning and knowledge of how to center racial equity and justice in one’s giving, particularly the "first steps" funders can take. From these engagements we know that donors are more apt to act when they learn from social investor peers who are doing this work well, and will ultimately find joy and true inspiration by practically connecting money to meaning.

Undoing generations of racial injustice is not going to be solved in a matter of years. We are buoyed by these clients and other philanthropists who are staying the course in their racial equity journeys and integrating their values into their philanthropic plans. 

Some of the examples of givers leaning into DEI who inspire us:

• The Raikes Foundation living out their commitments to equity and continuing to fund critical race theory education, despite significant backlash.

• Ronda Stryker and William Johnston’s recent historic gift to Spelman College (following on MacKenzie Scott’s major gift in 2020).

• The Ballmer Group’s investment in 100 Black-led organizations to help spur innovative solutions and provide Black leaders with the tools that they need to scale and achieve their missions over the long term.

What to make of this trend: Donors who are concerned about the growing opportunity gaps for Black Americans and Native Americans have many choices. It may be possible to fund efforts to pursue equity within elite institutions in compliance with Students, which has left a small crack open for “race neutral alternatives” like being a descendant from enslaved Americans. In addition, donors may invest in post-secondary schools where the vast majority of underrepresented racial minority students are currently receiving an education. We believe that community colleges are an outstanding place for donors to consider for their philanthropic investments. (See an earlier blog post on this topic.) Most community colleges are experiencing reduced public support and rarely receive large support from alumni donors to augment their resources. Also, HBCUs are seeing rising applications over the last several years, many due to the anticipated Supreme Court ruling, and are another great place for donors to give. 

Trend #5: Wealth Supporting Racial Repair

We have seen a variety of philanthropic efforts showcasing how wealth can be a vital tool for repair. First, a note on terminology. Reparations is a broad term used to describe a process of addressing, healing, and restoring a group of people injured because of their group identity and in violation of their human rights. Expert social movement leaders are pursuing a case for state and federal government racial reparations in the US for Black Americans as a result of not only enslavement, but also its aftermath of Jim Crow, redlining, mass incarceration, and other forms of systemic racial oppression. In this post, I am using racial repair to describe actions by individuals and families to address and remedy harms committed by their predecessors or ancestors. 

There is a growing trend of wealthy individuals and families bringing a lens of racial repair and power shifting into their giving. Whether or not they are funding racial reparations movements (and many are), these donors are not waiting for the government to act in order to respond with accountability and consistency with their racial justice values. Some examples:

• The Libra Foundation, started by members of the Pritzker family, is committed to moving money to groups building BIPOC power. 

• The Share Fund’s Bill and Holly Marklyn believe in shifting wealth and power to communities in their grantmaking and in their investment practices.  

• The fourth generation of a legacy family client of ours decided to address their family’s origin of wealth created by extractive forms of capitalism by creating a new giving entity that directly engages with the communities who were harmed decades past.

As our taxation structure becomes more favorable to the uber-wealthy and the stock market continues to show record gains, those with the most financial means are beginning to ask a new version of the age-old question “how much is enough”. Now for many, the question is “how much is too much?” 

What to make of this trend: There are resources that can help you learn and explore effective ways to apply your wealth to racial repair. This often begins with understanding your family history and wealth origin story. While at times the work can feel heavy, we’ve found that donors ultimately find huge satisfaction and joy in coming to terms with the past so that they can face the future with a deep sense of purpose and integrity. At Phīla, we regularly work with multi-generational families on examining the meaning and purpose of their wealth as a path toward justice. Increasingly, we are asked to facilitate family meetings around sensitive topics and develop customized plans that reflect the intentions behind a family’s revised legacy that honors their efforts to repair harms of the past. As long as wealth continues to accumulate at the pace it is currently, we do not see this trend slowing. Philanthropists who are attune to the racial wealth gap will continue to find novel ways to redistribute wealth to those who have long been denied it.

It has been an enlightening exercise to examine these trends and report out our interpretations. I hope you enjoyed this series as much as I did. It will be interesting to look back a year from now and see where we will be. While I can’t predict the future, one thing is certain, we are living in the middle of a profound period of change as the old ways of giving become more and more antiquated. Where this all takes us is a question for the ages. Thank you for taking this ride with me! And as always, never hesitate to reach out to me or anyone else on the team with questions or comments.

***

Additional Resources

• For a thorough legal analysis of implications of Students for Fair Admissions for the charitable sector, read Davis Wright Tremaine’s memo, which addresses why values-based grant programs that prioritize racial disparities should be safe from legal challenges. 

• If you are interested in joining other donors to pursue racial reparations at the federal and state level, contact Liberation Ventures. Also, you can learn more about the role of philanthropy to build a culture of racial repair in this article that they co-authored with Bridgespan. 

• The Decolonizing Wealth Toolkit created by Edgar Villanueva and the Decolonizing Wealth Project is a good starting point for beginning a racial repair journey. 

• The Good Ancestor Movement, founded by Stephanie Brobbey, is a UK advisory firm working with families to help them redistribute wealth and restore communities and natural resources. 
  

2024: Noteworthy Trends in Philanthropy, Part One

By Sofia Michelakis

My 8th grade school photo with my “bi-level” (aka mullet) cut

I refuse to accept that the mullet is back. For me, that hairstyle will forever be associated with awkward middle school dances. Maybe that’s why I always view the onslaught of New Year predictions and trends with a healthy dose of skepticism. 

At Phīla, we serve a wide range of high net wealth individuals, couples, and families. We are discerning about separating meaningful trends from fads which, like my 80s mullet, are best quickly forgotten. In this post, we share the first three of the top themes we’ve been noticing and how givers wanting to have a deeper social impact could apply them. In future segments, we will share additional relevant trends. 

Trend #1: The Rise of Financially Independent Women

Whether because they earned it themselves or came into financial abundance through divorce, death of a spouse, or other inheritance, women are increasingly holding the reins of large amounts of wealth. In 2020, McKinsey & Company predicted a massive wealth transfer in this decade, with White women baby boomers as the biggest recipients. According to Fast Company, women currently control $11 trillion in assets, and that figure is expected to nearly triple by 2030. We see this growing trend in our client base as well. 

However, even when they have financial power, women can sometimes second guess themselves and their decisions about how they deploy their wealth or have their priorities minimized. We have observed that women–especially those over 60 in that baby boomer demographic–often defer to the men in their families and others who are so-called “experts”, even when those men are of similar age, education, and intelligence. 

To be sure, the finance industry is in need of an overhaul to better serve the philanthropists of today and tomorrow, as has been aptly written about elsewhere. Over the past few years, we have increasingly engaged with our clients and like-minded wealth managers and other advisors with a common goal of helping women gain more confidence in determining the purpose of their wealth and becoming more effective financial stewards. 

What to make of this trend: To our women readers, we want to support you to step into your financial power with confidence. When it comes to where to invest your philanthropic dollars, you likely know more than you think you do. Whether it’s cheering you from the sidelines, coaching you behind the scenes, creating space in meetings for your voice, or connecting you to fellow women travelers in philanthropy, we have your back! To our male readers, we are looking for allies. Support the women you know–your spouse, your mother, your sister, your colleagues, etc. Validate them, support their decisions, advocate for them to be recognized in leadership roles, ask questions to understand and learn, and be willing to listen.

Trend #2: Engaging In Democracy Is Social Impact

Regardless of your politics or whether you have a political giving strategy, this year’s election will have huge consequences for every sector and every cause about which you care. You will no doubt be asked repeatedly to give to candidates, but that is certainly not the only way to be active in this year’s election cycle.

Some people reflexively believe that their political giving is not part of their social impact strategy. We think differently. We do not cede the final say on defining social impact to the IRS, which simply defines rules for what can be considered tax deductible or not. Political giving and engaging in democracy can be part of a holistic social impact plan.

Several of our clients have begun exploring the connection between unions and democracy. Indeed, the Democracy Alliance has noted strong evidence that “Labor unions are the countervailing force the United States needs against nearly every trend eroding democracy, including rising political polarization and extremism, partisan pressure on the electoral process, harmful immigration policies, and growing wealth disparities.” 

Other clients are asking their current grantees about how they are engaging in advocacy activities at the local and national levels, either as a 501(c)(3) or through an aligned 501(c)(4) entity. In addition, we are currently supporting a few of our clients to bring in political advisors when needed to develop a specific, targeted giving strategy for the 2024 election cycle, integrated with their overall social change vision.

What to make of this trend: Don’t silo your political and philanthropic giving. Be sure that the staff and advisors with whom you work are informed about your goals and interests in democracy and elections so that they can better harmonize your giving strategy. You may find out that you can use philanthropy as a tool to advance many of your interests in supporting a healthy democratic society.

Trend #3: How Philanthropy and AI Intersect

The potential threat of AI to society and the social causes you care about is less about machines run amok ala the Terminator films, and more about what the government and your fellow humans might do. Think of AI as a ridiculously powerful tool – in the right hands, it may provide unique ways to speed scientific innovation and create social good; but in the wrong hands and without appropriate guardrails, it can be misused and lead to greater inequality, oppression, and other harmful consequences.

Common concerns about AI include future disruptions in the labor force, potentially putting millions out of work. But the impacts are not just theoretical. Crucially, we are already witnessing significant harms today. AI technology is already responsible for cutting safety net benefits, placing kids with loving parents into foster care, and falsely accusing Black and brown people of crimes.

There are huge ethical questions about this new technology, both in who benefits and who makes decisions. Philanthropy can play a significant role in ethical approaches to AI, as we know that under-resourced populations are less able to advocate against well-financed corporate interests. Several field-building initiatives are already emerging to foster more shared intelligence and agency around the philanthropic response to AI. For example, through a network of philanthropic advisors in which we are actively engaged called “P150,” we have been exposed to some of the leading thinkers who are exploring the big questions for philanthropy and AI. One of these experts, the Effective Institutions Project, has put together a funder’s guide to AI governance and strategy, which offers both a broad framework for thinking about philanthropic opportunities in AI and examples of specific organizations doing impactful work. 

What to make of this trend: Consider how AI will impact the social issues you care about as well as the implications for your own philanthropic organizations. We can help you identify nonprofits engaged in areas such as policy development, research, advocacy, talent development, technical assistance, and field-building that could benefit from additional funding. We can also facilitate family / board meetings to discuss ways to align the implications of AI to your philanthropic organization’s values.

We would love to hear your thoughts about these and other trends that are top of mind heading into the new year via this two minute, confidential survey. We’ll check back soon to share survey results along with trends 4 and 5. Stay tuned! 

Resources

Women Becoming Confident Financial Stewards

• Read Phīla colleague Janell Turner’s previous blog post about aligning financial investments with your values, featuring Invest for Better (August 30, 2020)

• Download Rockefeller Philanthropy’s Guide for Women and Giving

• Attend Women Moving Millions Annual Summit (May 1-3, 2024, Brooklyn, NY)

Ideas for Engaging in Democracy

• Be inspired by an Interview with Melinda French Gates on her efforts to expand female representation in elected office (Washington Post, July 27, 2023)

• Explore Democracy Fund’s Grant Database

• Listen to Baratunde Thurston's “How to Citizen” podcast, which focuses on love, connection, and how to create “a dope culture of democracy” (available on most streaming services)

Learning More About AI and Society

• Skim nonprofit tech guru Beth Kanter’s practical advice in 8 Steps Nonprofits Can Take to Adopt AI Responsibly (Stanford Social Innovation Review, September 7, 2023)

• Watch the documentary film Coded Bias, which follows the dramatic journey of Joy Buolamwini, an MIT researcher who discovered prejudice in machine learning algorithms and launched a movement for transparency and accountability (available on Netflix and PBS)

• Read Automating Inequality: How High Tech Tools Profile, Police, and Punish the Poor, by Virginia Eubanks (MacMillan Publishers)

Reflecting on Six Years of Impact: Phīla's Journey to 2023 in Numbers

Man in silhouette overlooking body of water

By Stephanie Ellis-Smith, Founder and CEO

As we approach the end of 2023, we find ourselves compelled to reflect on the milestones and metrics that define our road to success. At our core, we measure success not just in numbers, but in the lasting impact we create for both our clients and the communities they serve. Let's dive into our year by the numbers, highlighting the quantitative and qualitative aspects that shape our narrative.

Quantitative Impact

Assets Under Influence (AUI): $2.8B

While we don't manage funds, we proudly guide charitable assets; we call them "Assets Under Influence" (AUI). As of December 2023, our AUI stands at an impressive $2.8 billion. This figure represents the combined philanthropic resources of our clients that we have the privilege of influencing for the long term, shaping the landscape of giving for generations to come.

Growth: Steady and Sustainable

Sustainability isn't just a buzzword for us; it's a key metric. Over our six years in operation, we've experienced a sustainable revenue growth of 30% year over year. This growth is a testament to our commitment to making a lasting impact in the philanthropic landscape AND being a role model for building a successful Black-owned business. We’re here for the long haul.

Client Portfolio: Expanding

From our humble beginnings of serving four clients annually, we've evolved into a dynamic team guiding well over a dozen clients each year while keeping our bespoke service level high. This expansion not only speaks to the quality of our services but also reflects the growing demand for our unique approach to philanthropic advising.

Service Offerings: Dynamic

Our steady growth has allowed us to offer our clients so much more now than when we began. In addition to our bespoke advisory service, which remains core, we now offer grants management, executor services for charitable estates, and most notably the Phila Venture Fund. The Fund is our new 501c3 entity that is able to host donor collaboratives, fiscally sponsor client-driven initiatives, and act as a re-grantor for private foundations.

Team Growth: From 1 to 8

In 2017, I was a solo practitioner and since then, we've flourished into a formidable team of eight. This expansion reflects our shared commitment to our mission and our responsiveness to the evolving complexities of the philanthropic terrain, ensuring a more impactful and tailored approach for our clients.

Increased Giving by Clients: $100M

The impact of our work is evident in the increased giving by our clients. From 2020 to 2023, we've mobilized over $100 million in new giving and assisted 12 clients in establishing brand new giving areas centering equity. These numbers underscore our ability to inspire and guide transformative philanthropy.

Qualitative Impact

Adoption of Equity-Based Practices: 100%

Beyond the numbers, we care deeply about HOW our clients give. A remarkable achievement for us is that 100% of our clients have adopted trust-based and power shifting practices. This includes embracing participatory grantmaking models, adopting a values-based approach to giving (i.e., giving beyond c3s to investing in individuals, c4s, and politics), making multi-year general operating support grants, simplifying grant processes, minimizing reporting requirements, and actively seeking input from grantees.

Thought Leadership

Sector Influence: Rising

Our impact extends beyond individual clients. In the last year alone, our perspective has been sought after by more than 15 different philanthropic sector organizations, networks, and major wealth advisory firms--as keynote speakers, facilitation experts, and trend spotters. This recognition underscores our thought leadership in the sector. As an example, you can listen to Senior Advisor Janell Turner expertly talk about the intersection of our work and the financial sector in this podcast.

Active Followers: Growing

Our commitment to sharing insights and knowledge is evident in the growth of our community. We currently have 894 subscribers to our monthly newsletter, Insights in Philanthropy, serving as a platform for sharing valuable information and fostering a sense of community among philanthropic stakeholders. Our subscribers are curious donors, nonprofits, foundations, professional advisors, and estate attorneys all keen to broaden their sector knowledge.

Social Media Engagement: Trending

While the exact numbers may vary, our impact on social media is substantial, with thousands of impressions and reposts. Our digital presence on LinkedIn and Instagram allows us to amplify our message, reaching a broader audience and influencing conversations in the philanthropic space. 

Who We Are: Diverse

Our team's diversity is not just a statistic; it's our greatest strength. Comprising 100% women, over 66% BIPOC, 25% LGBTQ, and with a growing presence in the Midwest, our team brings a dynamic awareness of the grantseeking side, acting as a bridge between donors and doers. This diversity fuels innovation, empathy, and a richer understanding of the multifaceted challenges within the philanthropic landscape.

Looking back makes me excited for the future! 2023 is a narrative of growth, impact, and a steadfast commitment to transforming the face of philanthropy. As we step into the future, we carry these achievements with us, knowing that each number represents a life touched, a community empowered, and a step toward a more inclusive and impactful world. Thank you for being a part of our journey.

Our Year in Review

Soaking up naturing on our morning hike in the Snoqualmie National Forest

Stephanie: A highlight of the year for me was our team retreat in the mountains. It was amazing how productive we were AND how much fun we had! It was also a special moment for me as I pushed myself to be a bit less of the “striver” and more centered in gratitude this year. Spending two full days with this incredibly smart group of people drove home just how special this group is to me. The amount of absolute trust and care we have for each other is a true gift– we’ve all had the opposite experience in professional environments. I’ll end this reflection by saying that I’m proud of myself for having a good eye for talent! ;)

My hopes for 2024 are grounded in activity. I hope that my fellow Americans become active and energized to fully participate in our (fragile) democracy. We will no doubt continue to experience the stress that results from the violence and divisiveness sown from politics and media, but I hope that we can also appreciate how important it is for all of us to take our rights and privileges seriously. As Joni Mitchell sang “you don’t know what you’ve got ’til it’s gone”.

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My husband Michael and I with our haul of greenery

Tara: As we bid farewell to 2023, I can't help but reflect on the unexpected highlight that became a source of joy and solace – gardening. What started as a simple attempt to bring some greenery into my life evolved into a flourishing passion for growing my own produce. This year, the garden became my sanctuary, a place where the stresses of the world (especially law school!)  melted away amidst the vibrant hues of blooming flowers and the fresh aroma of herbs. Harvesting tomatoes, peppers, and herbs straight from the backyard added a sense of accomplishment and a connection to nature that I didn't realize was missing.

As we step into 2024, my hopes are rooted in the continuation of this journey. The simple act of tending to plants has been grounding and taught me patience, resilience, and love for our earth and environment. I now have a growing interest in environmental justice, the importance of community gardens and teaching our community how to grow food. Here's to a 2024 filled with more growth, both in the garden and in our lives! New favorite color: green! 

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Halloween with my son in his horrible costume. But I’m still smiling!

Lauren: I have a good friend who talks about “keeping to your hula hoop” or controlling what you can and letting go of (sometimes even delighting in!) the rest. As someone who definitely prefers order to chaos, I’ve tried to remember my friend’s wise words this year. In this picture, you’ll see my younger son and me on Halloween a few months ago. When he picked out this revolting costume (he’s seven), I could have refused to let him wear it. Instead, I took a breath, recognized that he was sending me a message about who he wanted to be in that moment, and realized it was my role to accept it whole heartedly. 

How does this resolution to explore and embrace the unexpected translate in my work at Phīla? It’s enabled me to be more open-minded about opportunities, as well as the intentions of our clients. Over the summer, my colleague Sewheat Asfaha read a letter to the editor in the Chronicle of Philanthropy that led us to respond with our own op-ed. I took on more opportunities to speak up in professional forums about the role of philanthropy and the responsibilities of donors. Finally, I’ve deeply enjoyed working with our amazing clients, who challenge my assumptions and stretch my thinking about what’s possible in philanthropy each and every day. I wish everyone in our Phīla community a restful and restorative break. I cannot wait to start up again in the New Year!

Enjoying some delicious phở in Hanoi, Vietnam

Sonia Nussbaum, our NEW Intern! 2023 was a year of large–but exciting–transitions for me. I am fortunate to share that I graduated from college in May, earning a B.S.P.A. in Nonprofit Management and Leadership. In October I was extended an opportunity to work alongside the tremendous women here at Phīla Engaged Giving. This position is the first of what I hope will be many in the philanthropic sector as I am incredibly passionate about the positive outcomes it can have on our society. That being said, I've heard that if you work hard you have to play hard too. So, in the time between completing college and finding employment, I spent four months traveling in Southeast Asia and Australia. Between visits to elephant and koala rescues, never ending street food, and conversations with strangers who quickly turned into travel companions, I truly had the trip of a lifetime. Upon returning to the U.S., I moved to Chicago, branching out from my east coast roots. This year I am looking forward to building community in my new home and continuing to develop the skills to support those engaging in philanthropy. Wishing you all love and happiness in 2024. It's all up from here!

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Delighting in the charming seaside village of Cowichan Bay, Canada

Sofia: 2023 arrived with the launch of my philanthropy advising practice, and I soon joined this amazing team at Phila. My new colleagues motivate me every day through their combined brilliance and care, and I feel so lucky to work alongside them. My themes this year: creativity and wellness. From January through April, I engaged in an Artist’s Way workshop. I’m still writing daily morning pages and taking myself out for weekly artistic adventures. Last summer, my partner John and I spent an enchanting week on Vancouver Island. I also took a month-long break from technology and wrote about the experience.

I arrive at this year’s end grateful for my clients and the joyful variety of my work – from guiding family giving and governance to fostering donor collaboration aimed at reimagining capitalism. Moving forward, I am bringing a mindset of abundance into 2024, celebrating my family, my teachers, and the glorious calm that can be found under the blanket of winter. 

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Me and the weeds

Claudia: My 2023 highlight was continuing to find opportunities to connect with my community. In my photo I am crouched in front of a pile of weeds pulled by a group of Earth Gay volunteers. Earth Gay is an inclusive celebration of the Earth, this particular event took place at Burien, Washington’s Salmon Creek Ravine. As a volunteer I helped with litter pick up and weeding followed by a nature walk and bird sit.I’m optimistic about 2024. My head and heart are full of all sorts of plans and hopes, but as I’m writing this, I’m most looking forward to the simple things. I’m looking forward to seeing how the sun hits my yard in the summer. I’m looking forward to finding the perfect dining table for the house I moved into this year. I’m looking forward to filling the pages of my sketchbooks.

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Me, deep at work. I was VERY into finding the perfect match of scents for 2023!

Janell: To celebrate my birthday this year my partner and I embarked on a scented escapade at a candle-making  bar in Seattle. The moment we stepped through the door the tantalizing aroma enveloped us. The walls, adorned in a tapestry of scented oils, drew us in. Before the candle-making journey began, we were tasked with the seemingly impossible mission of choosing just a handful of scents. The selection processes demanded an unexpected level of focus, thought, and care. I approached the task with meticulous attention. A drop of this, two drops of that—I engaged in a delicate dance until I discovered the perfect harmony of scents that made my heart sing. This “wax alchemy” of sorts served as a metaphor for the journey that encapsulated 2023. It was a year of embracing all of the various “drops of life” that define our humanity— relief when your child overcomes a crisis, grieving the departure of a loved one, navigating the delicate balance between ego and insecurity, the ebb and flow of weight loss and gain, and finding precious moments for self-care amid the overwhelming noise and chaos in our world. 

Throughout this transformative year, I embraced pauses and extended more space and grace to those in my orbit—loved ones, friends, colleagues, and clients. As I look toward 2024, I’m grateful for the kaleidoscope of experiences that shaped my journey and look forward to what the future holds. Cheers to navigating life’s intricate fragrances!

Investment Policy Statements: An Old Tool for New Purposes

By Kirsten Andersen and Nancy Reid

We hear this story over and over again.  An investor – let’s call her Janice – wants to make an investment in a social or environmental initiative she’s heard about.  Maybe it’s a solar energy project, a community loan fund, or a small venture fund backing entrepreneurs of color reimagining the future of work.  She doesn’t want to make a mistake, though, and so she runs the investment by her financial advisor.  And that’s where the conversation ends, because the investment turns out to not be a good fit.

Sometimes an investment truly isn’t a good fit. It’s too risky, too illiquid, or too weird to fit nicely into an existing investing framework.  Maybe it really isn’t a good idea for Janice to pursue this idea.

But often, the reason Janice’s financial advisor won’t approve an investment with a social or environmental focus – an investment that seeks to do well and do good – is that her advisor is following a set of instructions that prohibit them from doing so.

Ironically, Janice probably signed off on those instructions herself. They are part of a document called an Investment Policy Statement (IPS). An IPS is where investors and their investment managers document their agreed-upon investment objectives, risk parameters, liquidity needs, and asset allocation.  It’s the job description for your wealth managers, a guiding document for difficult decisions, a communication vehicle between a client and their advisors, and a decision-making tool.  

You probably have an Investment Policy Statement (IPS) too. We recommend digging your IPS out of your files, or requesting a copy from your financial advisor. What does it say? It probably says roughly the same thing everyone else’s says: maximize profit, minimize risk.

You may be thinking that maximizing profit and minimizing risk is good! And it is – especially if these instructions govern money you’ll need to retire on, or money that is being invested for the benefit of a special needs child.  

For many investors, though, these instructions are incomplete. What’s missing from these statements is as important as what is present. By omission, your IPS says that you prioritize maximizing financial return at any expense. And because of this, our economy churns forth according to the default settings of the financial industry, often at the expense of people and planet.

Of course, profit is the basis on which our entire economy is built, and everyone has their own ideas and feelings about where tradeoffs can and should be made. Contributing to this complexity is a culture that does not encourage us to discuss purpose and profit in relation to one another. But we can make progress through an investment policy statement that integrates all of the outcomes that matter to an investor, not just the financial ones.

Aligning purpose and profit 

Purpose and profit can co-exist in a broad array of ways. From pension funds recognizing the climate risks inherent in traditional oil and gas investing, to investors buying laddered Certificate of Deposit (CD) portfolios from Black-owned banks, each investor has their own sense of what risks and outcomes matter most to them.

Our work is focused on helping investors craft investment policy statements that reflect the precise ways in which they choose to integrate their philanthropic values into their investment approach. Many investors find it strategically essential to revisit and update their investment policy statements, including:

• Families whose kids and grandkids are alienated by the idea that their inheritance funds political lobbying, fossil fuels, or private prisons;

• Foundations wanting to avoid the reputational risk associated with certain investments in their publicly available 990 forms; or

• Individual investors simply seeking to create integrity and harmony on both sides of their financial life. 

Some of these investors may have philanthropic plans, mission statements, and strategic support teams to maximize the positive outcomes of their philanthropic giving. But the people who make decisions about the core assets – which may be 95% of a family’s wealth – are reading from a very different page. As long as your philanthropic intent remains documented in a vision statement instead of being integrated into your investment policy, it won’t change how decisions are made on your behalf.

One family foundation’s journey

In the wake of the Black Lives Matter movement in the summer of 2020, one family foundation signed a pledge that called for racial equity across the investment industry. In part, signatories pledged to take racial justice into consideration when making investment decisions. But like so many other organizations, the question for the family foundation became: how do we implement this?

The answer was simple but not easy: update their investment policy statement, integrating their racial equity values into the decision-making framework from which their financial advisors work.  

In collaboration with the foundation’s executive leadership and investment committee, we integrated the ideals and aspirations they had for their investments alongside the very real constraints of how their investment committee interpreted their fiduciary obligations.

The resulting document introduced the foundation’s values into a tool that investment advisors are familiar with and utilize in their work. By building a common language with their advisory firm, the IPS served as a place from which to begin conversations about the social or environmental good the foundation wanted their assets to create in the world.

Why it matters

Equipped with an updated version of an Investment Policy Statement, investors are ready to have grounded and sometimes challenging conversations with their financial advisors about their portfolios. Should these conversations reveal major differences, the IPS can also guide a search to find an advisor who can implement the ideas that matter most to any particular investor.  

We are not evangelists for any particular issue or investment approach. What we listen for are the specific issues you want to use your power as an investor to influence: climate solutions, the governance or employment practices you care about, the people are who make money from your money, or something else entirely.  

Because whether we like it or not, the world is shaped in large part by businesses, and businesses report to their lenders and shareholders. If you want to take responsibility for the decisions being made on your behalf, taking responsibility for your investment policy is a great place to start.

Nancy Reid CTFA and Kirsten Andersen PhD bring a breadth of experience with families and foundations to their work as independent consultants. Kirsten Andersen has a doctorate (PhD) in economic sociology, bringing a research-informed methodology to investment policy design. Nancy Reid puts her Certified Trust and Fiduciary Advisor (CTFA) certification and mediation training to work helping families and investment committees reach agreement on investment policy.  Their bespoke process helps clients navigate the sometimes confusing world of impact investing.

Social Impact Through Social Media: Navigating the World of Influencers with Young People

By Alyssa Sweetman

Image by Alex Hamer. A boy with headphones on at a key board intensely playing a video game.

Influencers and culture shapers have existed since the dawn of humanity, but before the widespread accessibility of the internet, it was limited to people with means, a network, or the limited chance offered by a few professions (e.g. celebrities, politicians, those with extraordinary wealth).

For those of us who grew up in the early days of the internet, our experience was vastly different. We searched for obscure blogs, content, and connected with people across hyper-specific and niche forums/chat rooms. Today, young people have a completely different experience; they frequent a handful of apps and websites, consuming content that's optimized to compete for their attention. This content shows them highly curated homes, relationships, and vacations. They develop strong emotional connections to strangers on the internet, many of whom they have never had a two-way interaction with. These parasocial relationships, combined with the notion that seemingly anybody can become famous or wealthy through sharing content on the internet, have hyper-commodified daily life.

Today’s influencers do more than recommend products or lifestyles, they influence what people believe in, how they act, where they give their money, and even directly or indirectly wield their audiences like citizen armies. 

Though many are notorious, cue PewDiePie (who has been accused of being a White Nationalist), Joe Rogan (the most listened-to podcast host in the world and is considered by many to produce content that serves as an alt-right gateway), and Andrew Tate, (perhaps one of the most infamous influencers, is suspected of earning over $5 million a year through his Hustle University program and currently is facing a human trafficking charge), influencers have also shown to be an incredible force for good. For example, Twitch streamers raised over $310 million for nonprofits globally. It’s much harder to get a picture of exactly how much influencers have raised for nonprofits across all of the social media services, crowdfunding sites and through product sales, but I’d wager it’s well over $1.5 billion. 

While corporate philanthropy often entails extensive initiatives guided by marketing and public relations strategies, influencers' philanthropic efforts might seem more individualistic and grassroots, directly engaging with their audience and leveraging their authenticity. However, just like in some corporate philanthropy, this approach can be part of influencers' branding strategies. Like greenwashing, some influencers use philanthropy to project an image that can serve to protect them from criticism and accountability from their fans.

One of the most well-known philanthropic influencers is none other than MrBeast. Jimmy Donaldson's aspiration was simple – he dropped out of college after two weeks, telling his mother, "I'd rather be poor than do anything besides YouTube." After experimenting with various trends on YouTube, his gimmicks and philanthropy stunt videos began to gain traction. Within almost five years, he reached one million subscribers; today, he boasts an impressive 173 million subscribers. In December 2018, MrBeast earned the title of "YouTube’s biggest philanthropist."

Jimmy's extensively documented journey portrays an individual who held an obsessive desire to create viral YouTube content from a young age. Many of his supporters vehemently defend him, arguing that his charitable actions overshadow any criticism. However, those who point out that Jimmy strategically optimizes for views, thereby creating a form of "inspiration porn" and positioning himself as a savior, often face severe backlash, including death threats, doxxing, and harassment. 

And, like every industry, the influencer economy is comprised of all kinds of people. Hank Green and John Green, lovingly referred to as "The Green Brothers," focus on creating educational content, raising funds for health-related charities, and, most recently, engaging in a public battle with Johnson & Johnson to compel them to share the license for a tuberculosis vaccine. Benjamin Lupo, better known as DrLupo, has raised over $13 million for St. Jude Children’s Research Hospital and is known for his welcoming live streams – even making statements of support and uplifting marginalized creators, something that's rarely done by creators similar to him. Tanya “Cypheroftyr'' DePass uses her platform to encourage better representation of historically excluded groups within the gaming and tabletop industries. Popular Trans TikToker Mercury Suzanne Stardust raised $2.25 million for a trans healthcare nonprofit within 24 hours. It wouldn’t take much to find other examples of influencers who are incredible role models and use their platform responsibly.

We all want our children to be inspired and do good things for the world, and social media, GOFundMe’s and other platforms have a tremendous capacity for good. However, it is still worth remembering the importance of being thoughtful and savvy media consumers–even, or maybe especially, when the intentions are good. Teaching our children about internet safety goes beyond the basic "don’t believe everything on the internet" and avoiding predators or potential kidnappers. It's crucial to engage with our children about their favorite subjects, particularly the influencers they admire and aim to emulate.

Tips for navigating conversations about influencers with young people:

Be Curious: Encourage discussions about the content they consume and the influencers they admire by asking questions. Refrain from making judgments and instead ask more questions if you have concerns. Utilizing this approach is an effective way to help others understand your perspective without feeling dismissed by your reaction.

Explain Parasocial Relationships: Influencers, whether intentionally or not, excel in establishing parasocial relationships with their followers. They employ language like "family," "community," and other endearing terms for their fan base. They invite their fans into their lives or engage them in conversations (such as when MrBeast asks for help from his fans).

Dig into Motivations: There's often a tendency to accept people at face value and believe what they say. Encourage the young individuals in your life to critically examine the potential motivations behind the actions of their favorite influencers.

At the end of the day, our desire remains to be recognized for our good deeds and to engage with like-minded individuals. The difference is that now, we're forming connections through online comment sections, where many hopeful influencers are motivated to transform us into devoted supporters rather than agents for real social change.

Alyssa Sweetman

Alyssa is the Director of Strategy at Player 2, an agency that develops comprehensive strategies for companies using gaming and esports, and the former Global Head of Social Impact at Twitch. She is a storyteller, community advocate, and a thought leader in the social impact space. Her work with charities, influencer fundraising, mental health advocacy, and diversity has earned her a place in Forbes’ 30 Under 30 list.