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.

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. 

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:


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


Ideas for Engaging in Democracy


Learning More About AI and Society

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 with brown hair, in a green sweater looking off to the side holding a teacup

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.




Empowering Change: A Transformative Journey with The Share Fund in Participatory Grantmaking

By Lauren Janus

The Share Fund Team (from top left: Bill Marklyn, Holly Marklyn, Emily Washines, Rashad Norris, Stephanie Ellis-Smith, Sewheat Asfaha, Bridgette Hempstead, Estakio Beltran. Not pictured: My Tam Nguyen, Vivian Phillips, and Lauren Janus)

In the ever-evolving landscape of philanthropy, traditional approaches are being challenged by new, innovative models that prioritize transparency and community engagement. Participatory grantmaking, by including people closest to the issues that philanthropy is working to address, has brought fresh perspective to the design of charitable initiatives and funds. One shining example of this radical approach is The Share Fund, a Seattle-based family fund that is redefining the dynamics of philanthropy through its commitment to empowering communities and redistributing wealth. 

Phīla Engaged Giving has collaborated with The Share Fund since inception, and we helped the Marklyns publish their learnings from the first year of the Fund in this new report. Below, I share our journey and the valuable lessons we've learned from working alongside Bill and Holly Marklyn and the Funding Committee members who have helped shape the Fund.

Prioritizing Community

The Share Fund’s journey began with two simple yet transformative ideas: What would it take for high-wealth individuals to redistribute all of their wealth within their lifetimes? How could this be done in a socially-just manner? 

These questions led to the birth of The Share Fund, a grantmaking body created in 2021 and focused on supporting racial and gender justice in Washington State. Working with the Marklyns, Phīla Giving established and continues to support all administrative aspects of The Fund. This included identifying and onboarding Black, Indigenous, and people of color (BIPOC) leaders to conceptualize and help make The Fund’s vision a reality. Today, this same concept still stands—a group of BIPOC leaders with deep community connections and expertise in racial and gender justice is responsible for the selection of grantees. For a deep dive into how this work was done, I invite you to read Bridgette Hempstead’s opinion piece for Philanthropy News Digest.  

The early stages of The Share Fund broke away from the traditional models of philanthropy where a donor-centric framework positions high wealth individuals to make decisions on behalf of the communities they aim to serve. Instead, The Share Fund handed decision-making power to the communities and individuals who are directly impacted by challenges like underinvestment, systemic racism, and lack of access to opportunity. By doing so, The Share Fund ensures that the needs and the aspirations of the community are prioritized.

Adjusting as Concerns Arise 

Phīla’s collaboration with The Share Fund was a well-made match as we understand the need to lean into community and evolve as needed. For example, in the early stages of The Share Fund, Committee members spent too much time on administrative work—taking away from their purpose of designing the participatory process of The Share Fund. Once this concern was raised, The Fund’s administrative tasks shifted to us at Phīla. 

Moving at the Speed of Trust

Building trust between funders and communities is essential for successful participatory grantmaking. The Share Fund's emphasis on collaboration and transparent communication demonstrates the importance of creating a safe space where open dialogue can flourish. The Marklyns and The Share Fund model a hands-off approach that serves the community without strings attached. In fact, Bill and Holly are not on calls where funding discussions, and ultimately, decisions happen. The Marklyns entrust the Funding Committee members with all aspects of the grantmaking process, only giving the parameters that grantees must focus on race and gender justice in Washington State. 

When new Funding Committee members join The Share Fund, they are often surprised by the loose structure of The Fund. It simply isn’t their experience (especially for those who are leaders of nonprofit organizations) to have full control. Yet working in this manner has yielded incredible outcomes. Since inception in 2021, The Share Fund has made more than $1.1 million in grants to organizations on the frontlines of change. This includes our most recent round of grantmaking, which wraps up this month. By relying on the insights of a Funding Committee, the Share Fund strongly reiterates what seems obvious but is often lost: Trust is the cornerstone upon which impactful partnerships are built.

Reshaping the Philanthropic Landscape

As our collaboration with The Share Fund continues, we are excited by the potential of participatory grantmaking to reshape the philanthropic landscape. This revolutionary approach reminds us all that there is a great reward when we relinquish control and embrace a new era of inclusivity, collaboration, and empowerment.

The Share Fund's journey exemplifies the profound impact of participatory grantmaking on the lives of individuals and communities. Their dedication to transforming philanthropy from within serves as an inspiration to all those who seek to create meaningful change. As we move forward, we are committed to applying the lessons we've learned from The Share Fund to our own work, and we invite fellow philanthropic organizations and families to join us in this transformative journey toward a more equitable and just world.

Want to learn more about the Share Fund and its approach? Download “Letting Go of Power, Centering Community: The Share Fund’s Story of Incorporating Participatory Grantmaking in Family Philanthropy” today!

Discovering Animal Philanthropy

A waving polar bear. Photo by Hans Jurgen Ma

By Claudia DeCasas and Tara Smith

What’s the first thing that comes to mind when you consider how to support animals through your philanthropy?

For many, they think of animal shelters, a local humane society, or conservation groups working to save endangered species. While those organizations are fundamental in taking care of animals, they do not necessarily give us the full picture of the diverse needs of animals that could be addressed through our philanthropy. Many, if not all of them, intersect with human, environmental, or climate related issue areas. 

One notable example that has caught our attention is the construction of a wildlife overpass in California, designed to ensure secure wildlife passage across US-101. This endeavor aims to benefit numerous wild animals, with a particular focus on the Mountain Lion, which has been experiencing increasing mortality rates with its efforts to cross the dangerous highways. Another example is how allowing wild horses to roam free helps to curb wildfires. Protecting these horses is an innovative approach to protecting our homes and the environment, while also keeping wild animals free. Whether it’s protecting endangered whales from boat strikes or defending our friendly pollinators, the wild bees, there is so much variety in how you can choose to make an impact.

If you are new to animal philanthropy, we hope this simple, 3-step guide will help you to find an issue you care about, connect with an organization, and take the next steps toward making an impact. We end the blog with a few of our favorites.

Step 1: Reflect on where your caring comes from. 

You’re here, you’re reading this blog, so let’s assume you’re one of those people who has a warm place in their heart for the other living things we share this earth with. Have you ever stopped to reflect on where this caring comes from? Is there a specific moment that jumps out to you as an inspiration? It can be anything, a childhood pet that was very meaningful to you, tide pools that sparked an interest in ocean life, a report you wrote on the endangered red wolf population, or maybe a food sensitivity that set you on a path to research farmed animal advocacy.

Now, without judgment, reflect on this moment. Maybe you have more than one. Consider these reflection questions: 

  • Why do you think this particular moment is meaningful to you?

  • What emotions were you feeling in that moment? Were they positive or negative?

  • Are there any other events in your life that have made you feel a similar spark of interest or empathy? If so, what’s the common factor in these events?

Let’s translate this moment, this spark, and define it as an actual interest area. This doesn’t have to be an interest that you’re already knowledgeable about. For Lecia Mata, co-founder of Natives in Vet Med, her spark was her childhood interaction with dogs on her reservation, or “rez dogs”. This spark eventually led to her interest in and eventual contributions to the field of veterinary medicine.

Consider your moment, consider yourself, and consider your community, and how each of these things overlap with the animals all around us. What interest bubbles to the surface? Consider these reflection questions:

  • How broad or narrow is your interest in animals (is it as broad as a rainforest ecosystem or as specific as a particular animal in that rainforest)?

  • How has your interest evolved, has it stayed the same or changed? 

  • Are you happy with your current level of involvement or is there more you’d like to do and/or learn?

  • Is this interest already incorporated into your current giving?

  • What barriers (if any) are holding you back from being as involved as you’d like to be?


Step 2: Find and evaluate the organization you are interested in. 

Now that you’ve explored and identified your interest area, you’ll want to find the organizations that are doing the work you’re passionate about. If there are gaps in your knowledge about your area of interest, these organizations are also a resource to fill in those gaps. You can start with a simple Google search. Read through mission statements. Do the ideas resonate with you? Do they align with your own mission and values?

Once you have started your list, there are several additional resources you can use to further research your choices. You can look at a nonprofit’s 990 form - there is a lot there to learn from and it’s simpler to do than you’d think! We like this article that breaks down what to look for on a 990 and why it matters. Charity Navigator has a ranking system for nonprofits, this tool is most useful for larger organizations. If you’re able to give five or six figures gifts, you can consult with a philanthropic advisor. Advisors can also look at your current giving patterns and interests and help you develop a long-term giving plan that has meaningful impact. Lastly and most importantly, don’t forget that the organizations themselves are a resource. Reach out to the organizations that you are interested in and find ways to get involved. 

Remember, these resources, while helpful, are not the only factors to consider when deciding where to give. Consider adding some smaller underfunded local organizations to your list. Consider that nonprofits run by people of color receive less grant money. Consider the fact that “ugly” animals are often left out of major conservation efforts.

If you find yourself needing additional support in your research, you can always reach out to us. We’re happy to help where we can!, 

Step 3: Determine how you want to support the organization and cause. 

Once you’ve narrowed down your list of organizations, decide how you want to support and engage the cause you care about. Here are some ways you can support a nonprofit using “The Five Ts”*: 

  • Time: Volunteer virtually or in person with an organization. 

  • Treasure: Donate funds to support an organization's work and mission. 

  • Ties: Connect a nonprofit organization that you care about with other donors or other organizations that are engaged in the same work. Creating connections is a powerful way to drive change in the sector. 

  • Talent: Use your special skill to contribute. Nonprofits have a variety of needs and could benefit from one of your specialized skills.

  • Testimony: Speak to the organization's mission, work, and impact with other professionals and donors. Be their advocate! 

*Keep in mind that the T’s can be solo or work together! Find a giving groove that best suits your style. 

We hope this roadmap proves helpful and that you are able to connect with an animal cause that you care about. Should you have any questions on the topic, please reach out. We’d love to connect with you and help guide your giving.

Tara’s Picks 

  • Harbin SHS Animal Rescue / Harbin SHS is an international organization based in Harbin, China, that primarily rescues dogs from the illegal meat-trade, along with local abuse, neglect, and abandonment cases. 

  • Wild Horse Fire Brigade / Based on the West Coast, Wild Horse Fire Brigade saves wild horses through conservation and relocation efforts, and advocates for rewilding to prevent wildfires, protect the environment, and keep horses free. 

  • The Humane League /The Humane League is a national organization that advocates for humane farming policies and legislative action to end the abuse of animals that are raised for food.

Claudia’s Picks 

  • Anti-Persoonsmijnen Ontmijnende Product Ontwikkeling (APOPO) / In English, APOPO translates to “Anti-Personnel Landmines Detection Product Development”. APOPO is a Dutch organization that saves lives by training animals to rid the world of landmines and tuberculosis.

  • Old Dog Haven / Based in western Washington, Old Dog Haven helps senior dogs find safe and loving living situations through a large network of foster homes.

  • House Rabbit Society / A national organization headquartered in Richmond, CA, House Rabbit Society’s mission is to rescue, educate, and elevate the plight of domestic rabbits.

 

A Fresh Frame on Impact Investing for Philanthropists

Nancy Reid, Impact Strategist and Phīla Collaborator

By Nancy Reid, Impact Strategist

Will you join me in a thought experiment?

What if, instead of asking ourselves what kinds of giving the tax code permits and rewards, we asked ourselves a different set of questions?

What if we asked ourselves: how do we want to invest in community, economy, and ecology?  What mechanisms might we put in place now to support communities and ecologies two or three or seven generations from now?

And based on that vision, what kinds of funding will be most effective in bringing about the change we most wish to see in the world?

For example, if we want to eliminate ocean plastics, surely we need policy to regulate waste streams, and public and philanthropic capital to fund the thankless work of cleaning up rivers around the world.  But I don’t see a solution to this problem that doesn’t also rely on innovation and change within the private sector.

We need to accelerate funding of startups using new technologies to reduce and displace plastics across form functions.  And then we need venture capitalists poised to support those technologies and scale them across industries.  And then?  We need large public companies, particularly in consumer packaged goods, to see these innovations as a competitive advantage and acquire those technologies to replace plastics at the start of the product cycle.  

So while a wealthy person might look at the problem and begin to research environmental nonprofits, what if that person also thought of herself as an investor?  She might also become an angel investor in green technologies, reallocate part of her private investing portfolio to venture funds with explicit focus on accelerating technologies that mitigate or resolve environmental problems, or invest in an activist public equities fund that uses shareholder power to advocate for improved environmental policies at large public corporations.  

In another example, a philanthropist focused on racial equity might be inclined to donate to BIPOC-led community nonprofits or  make grants to HBCUs. And these efforts are powerful ways to support communities of color. But as long as payday lenders are the most available lenders in underserved communities, and Black homeowners continue to receive lower valuations for their homes, and less than 1% of venture capital goes to fund companies led by diverse teams, our country’s racial wealth gap and discrepancies in outcomes will remain intolerably vast.  

An investor willing to mobilize investment capital to support their philanthropic goals, however, might reallocate portions of their investment portfolio to buy CD’s at Black-owned banks actively lending in Black communities.  They might find investments that fund the conversion of private companies to employee ownership in communities of color.  They might buy a broad index of publicly traded stocks run by an asset manager who actively votes shareholder proxies and advocates for inclusive HR policies and environmental justice in urban areas. 

We are not financial advisors, and unfortunately we can’t recommend specific investments.  But wealthy clients who choose to mobilize some portion of their investable wealth have the option to design an investment approach that allocates money to:

  • Finance only (conventional investing)

  • Finance first (ESG and other “socially responsible” approaches, of which many are performative, so beware)

  • Thematic (attempting to achieve strong financial returns and strong positive impact)

  • Impact first (investing made primarily to advance an issue area, with high financial risk or below-market financial returns)

  • Impact only (traditional philanthropy)

We help clients think through the logistics and tradeoffs involved in each of these approaches, and coordinate with clients’ investment advisors to see what’s possible, in order to build an integrated capital strategy that funds innovation and problem-solving in our communities and on this planet.

This work requires that we examine our assumptions about the purpose of investing, which can cause nervousness.  But doesn’t the future require us to expand our beliefs about what’s possible?  Many investors find that the impact they can have by mobilizing an array of capital sources lasts far longer than the discomfort of examining our assumptions about the purpose of wealth.  A trusted guide can even help make the journey well worth taking.

How Donors Can Develop a Growth Mindset

By Sofia Michelakis

Over the holidays, I was having lunch with two friends who are resource mobilizers for large scale social change efforts. They both shared poignant stories of recent conversations they've had with high capacity donors who are decreasing their giving relative to previous years. Their reasons were some you might expect– economic uncertainty, busy lives etc.--and some you might not– fear of public criticism and wondering if it's the right time to go big.

This got me thinking about my experiences working with some of the most generous people in the world over the past decade. One question I keep asking is what is stopping extremely wealthy people from making 9-, 10- and even 11-figure gifts now and early in the New Year? Especially knowing that, in many cases, gifts of this size are paid out in multi-year installments and allow social sector leaders the freedom to dream big and execute large scale solutions.

A scarcity mindset affects even those with the most resources and advantage.

By mindset, I mean a set of attitudes, a worldview or philosophy of life. Mindsets are important because our beliefs and attitudes affect everything we do in life. I propose that the following five shifts in mindset for individual donors would go a long way toward increasing their confidence to make large scale gifts, even during economically challenging times. Whether you're an individual of great means, or someone who works closely with donors, I hope that these suggestions and examples will be useful.

1. Recognize that social problems compound too

I can't tell you how many philanthropists I've met who have really struggled with when to start giving. They often wonder if it might be better to wait to give in order to increase their wealth over time and have more to give away. While the desire to have more to give is laudable, I've often counseled that it is equally important to examine the societal costs of waiting.

Social problems are compounding, often at a faster rate than your wealth is compounding. Take climate change, for example. We have a very narrow window in which to act collectively as a global society to combat climate change. Philanthropy won't be the only solution, but it can be a critical accelerant. We need a mindset of acting with greater urgency in philanthropy. In fact, the very survival of the planet depends on it.

2. You do have enough

When I talk to philanthropists who just a year ago were conscious that their wealth accumulation is outpacing the speed of their giving, I am struck that many of them over the last 6-9 months now believe that the stock market has eliminated that challenge. This belief leads some people to conclude that they should slow down the pace and amount of their giving.

It is human nature for all of us—not just the very wealthy—to take a very short-term approach to comparing what we have now with what we used to have. I get my retirement fund quarterlies, and what does it reveal? It details my current balance compared to last quarter and last year at the same time. That's it.

Philanthropists should have a longer-term horizon and look at their wealth accumulation over a decade. Over this period, a lot of ultrawealthy people have seen their wealth double and even triple in size. Taking a more holistic and longer look back, recognizing that, "gee, overall, I'm way up" may be quite illuminating and increase confidence in being more generous.

Most billionaires give well below their potential and can afford to add a zero (or two!) to their annual giving.* I love it when newer philanthropists set an annual budget for their giving and then materially increase that amount every year as they gain experience and confidence with larger gifts.

*An exception is people whose wealth is entirely tied up in a private company, limiting their capacity to give until they have a liquidation event.

3. You are not too busy

One of the most common areas of scarcity thinking is in relation to time. I can relate. When someone asks me, "how are you?" the first thought in my head—especially during year-end craziness—used to be "busy." We need to reframe how we look at the competing demands on our time. Feeling too busy is a state of mind. It's more how we perceive our lengthy to-do list and we can become overwhelmed. 

There are approaches that we use when we have long to-do lists in our jobs and personal lives. We prioritize, and we get help.

The unconscious decision many donors make when they feel overwhelmed and busy is to de-prioritize their giving when they could be asking for help and delegating more. Here are three strategies for busting the "too busy" mindset:

  • Outsource your giving to a reputable collaborative or give to a collective fund. 

  • Hire a competent professional philanthropic advisor to help you articulate your giving criteria and develop customized recommendations that will enable you to give with confidence. 

  • If you're the DIY type, use give lists and/or grantees of your local community foundation as a short-cut to identify great organizations to fund.  

In short, don't let being too busy be a barrier to joyful giving. Develop a mindset that you have lots of choices for how to attack the busy-ness of your life!

4. Trust goes both ways; give in ways that earn trust

There is sometimes a misguided belief that people who choose nonprofit work have independent means (therefore needing less pay) and superhuman sources of energy (therefore needing less support and time off). We need to recognize social sector workers are essential workers and we can't keep taking them for granted. Less than 1% of philanthropy goes to programs directly benefiting women and girls of color.  Furthermore, organizations led by women of color receive smaller grants on average and are more likely to receive restricted funding. Is it any surprise that these leaders are burnt out?

It's not just donors who need to learn to trust nonprofits. Decades and centuries of systems of oppression have led to nonprofits and communities, quite understandably, not trusting philanthropists.

A thought exercise that would be helpful to donors is to consider "how does my giving earn trust from my grantees?"

In particular, philanthropy can support women of color leaders better. A significant way to do that is through bold, unrestricted gifts so that they can focus more time on the mission and serving communities, and less time on fundraising and reporting. You will likely find that it leads to greater social impact too. Naina Batra, Jeroo Billimoria, Morgan Dixon, Cheryl Dorsey, Bridgitt Antoinette Evans, Vanessa Garrison, Robin Wall Kimmerer, Solome Lemma, Sudha Nandagopal, and Ai-jen Poo are just a few of the brilliant women of color I admire and who are leading complex, essential work for the world.

MacKenzie Scott attracts a lot of attention for the breadth and size of gifts she makes without strings attached. But she is by no means alone. Some of the other philanthropists I respect for giving at scale and developing trusted partnerships with social sector leaders: Tegan and Brian Acton, Arnold Ventures, Ron Conway, Civic Ventures, Echidna Giving, Chuck Feeney, Gatsby Charitable Foundation, Eileen and Paul Growald, George Kaiser, Libra Foundation, Tricia and Jeff Raikes, Rohini and Nandan Nilekani, Azim Premji, Liz Simons and Mark Heising-Simons, SeaChange Foundation, Stacy Schusterman, and Cari Tuna. These donors use a range of giving vehicles and approaches, from organizations they have founded, to donor collaboratives, to direct giving, and funding advocacy and policy change.

5. An attitude of abundance and generosity will increase your wealth and happiness

Buddhists teach that having a giving heart creates the karmic conditions for future wealth. The inverse is also true—miserliness creates the karma for future poverty. Similar beliefs are reflected in many other world religions as well. Common sense agrees. We've all witnessed in our lives people who have very little, but nonetheless are open and generous in sharing with those who have even less than themselves. These people exude joyfulness and abundance. 

If you don't believe world religions or common sense, there is scientific evidence to back up this theory as well. Researchers at Notre Dame reported that on average generous people make more money in the long run than people who are selfish. There is also evidence connecting generosity with better overall health and greater happiness. Giving generously to increase the happiness of others has huge benefits for the givers themselves.

Embracing a growth mindset and developing new attitudes can help every donor break through the inhibiting, tight feelings that arise from succumbing to a scarcity mindset. Lean into your sense of abundance this year. Your families and your communities will benefit, and I guarantee that you will personally experience more happiness as well.

Edited from an article originally posted on LinkedIn December 12, 2022

Sofia Michelakis is a connector, guide, and experienced leader who helps people turn their vision for social change into action. As former lead strategist and deputy director overseeing the Giving Pledge and past board chair of Social Venture Partners International, she is a trusted bridge between philanthropists, their teams, and nonprofit leaders. Sofia has partnered with influential global visionaries on giving strategy and family engagement, developed engaging curricula and winning models for social impact, and frequently acts as moderator for in person and virtual executive convenings.

Corporate Giving for the Times

By Stephanie Ellis-Smith

How does a business make good on its desire to “give back” at a time of great need and great polarization? I hope this blog post offers a few insights for business leaders and those interested in corporate giving to get started. 

Corporate Social Responsibility and Corporate Philanthropy are terms that many, especially if you're in the business world, are familiar with. A pretty interesting primer on the connections between the two practices states that modern day CSR has its roots in traditional corporate philanthropy. Like most things, the world today is more complicated and multifaceted, so philanthropic leaders in the corporate sector are juggling a lot: a bigger push for corporate activism from consumers, demands from employees for more personal engagements around values over the bottom line, and an increasingly competitive global marketplace where doing well financially is more difficult than ever.

The Harvard Business Review describes CSR as “a self-regulated framework that has no legal or social obligation for corporations to actually create positive impact for the groups they purport to help.” But I’ve been reading about a newer methodology, Corporate Social Justice (CSJ), which attempts to require greater accountability from corporations trying to “do good”. CSJ practitioners consider their impact on a wide breadth of stakeholders: executive leadership, stockholders, employees, vendors, and anyone else who is connected to or influenced by the company. This new approach to address the bigger and more systemic issues we face today “requires deep integration with every aspect of the way a company functions.” 

Consumers and Americans at large are more conscious than ever of how what they buy can be a statement of who they are and what they believe in. Products can either help or hurt the most important issues that we face as a society: climate change, racial equity, wealth disparities, immigration, reproductive care, I could go on. Given the level of complexity in navigating these hot button issues, one might ask why are businesses still game to wade into these treacherous waters? Here are two key reasons that our team at Phīla has noticed:

First, to attract talent: Millennials, as the largest generation, and Gen Zs moving into the workforce, all want to work at places that contribute to the common good. And it’s not just the young folks who are pushing for a triple bottom line. The majority of human resource executives see it as a great tool for employee engagement and retention.

Second, to strengthen their voice: organizations with a clearly defined social purpose, typically experience more growth, have higher customer satisfaction, and have a reputation as champions for their community. Philanthropy is increasingly a key component to a strong brand. 

Now that you have an idea of what motivates a company to do this work, we can talk a bit about how it can be done successfully.

First, start with WHY. As we always say to our clients, no one has to engage in philanthropy. Getting comfortable with doing a deep dive into motivations is key. What exactly are you looking to get out of it? Do you want to financially support some really incredible work that's already happening in your community? Do you want to engage your employees with volunteerism? These kinds of questions are important to ask yourself because they will determine what type of nonprofit organizations you might work with, who should be involved, and what level of engagement (internally and externally) will be necessary. 

You can find lots of advice and advisors who will tell you how to develop a program in a quick and easy fashion that has a big return on investment, but Phīla does not believe in shortcuts. In this day and age, insincerity and slapdash programming are easily detected and you could end up doing more harm than good to your business. Take time to ask yourself the right questions at the outset and we guarantee you will save time (and probably heartache) in the future.

Decide on your goal or vision. When deciding on where you will have impact, it is not enough to simply settle on the vision that your CEO or founder is partial to. Vanity projects will only get you so far. Instead, create a thoughtful and intentional process that brings together customers, employees, or anyone else you believe to be keys to success, to determine which issues lie at the intersection of the company’s mission and the unmet needs of your community. Spending time on deciding how the values the business espouses connect with your philanthropy will make it easier to make decisions in the long-run.

The objective of this exercise isn’t to arrive at a goal that sounds impressive. In fact, the simpler it is, the better. The goal is to arrive at a vision for your community that your company is best equipped to play a part in creating. The temptation is to jump right in to picking issues and organizations to support, but in reality, having a program you can be proud of and that has longevity requires learning about your community, listening for understanding from your stakeholders, and building trust. It takes time.

Don’t be afraid to take a stance. At this moment, during fears of a looming recession, a fragile political environment, and worker burnout, taking a stand means you won’t make everyone happy. The company must be prepared to decide if it is okay with losing business from certain groups since taking money from those groups would run counter to its philanthropic values and strategy. Being consistent and knowing the issues at hand here is extremely important. A couple of examples of how businesses take a stand on issues important to them are companies who give employees the day off to vote and telling customers why; or retailers who actively reach stock suppliers of color and state why they find it necessary. You get the idea.

Establish mutually beneficial partnerships with organizations by doing the legwork to understand your company’s role in the broader ecosystem surrounding that goal. Identify key communities where you want your presence felt and get to know it on a deeper level by listening. Learn how the issue you care about has had an effect, past and present. Think about what you really want to get out of your relationship with the community. If it's a big employee-driven, social justice initiative that the company really wants to step into -- like what Patagonia did with their environmental focus --  then that affects the kinds of conversations you have with nonprofits. That's going to be your much larger, maybe national, organizations that can meet you eye-to-eye, head-to-head, and give you the type of partnership you really need. 

Conversely, if you're looking to be embedded in a community, then that's a different kind of conversation with maybe smaller organizations. Savvy businesses understand the need to partner with nonprofit experts on the issues they care about, and even more so if they are looking to engage with communities of color. It is important to ensure that these are not token partnerships, but authentic and mutually beneficial for both the business and the local partner. (For a deeper dive into embedding racial equity into corporate social responsibility, check out a webinar I participated in hosted by Benevity called Turning Statements Into Action.)

Kristin Jarrett, Social Impact and Equity Strategist at Spotify, advises large and small businesses to meet with nonprofit organizations and ask them about what big problems they are trying to solve and how you can help. She wisely suggests that businesses stepping into the social sector should plan to “do some backwards planning and create ideas around how you could collaborate to really support them (i.e., nonprofits) in their mission.”

Finally, regularly check in on your progress. Philanthropy is an ongoing commitment to achieve a vision of justice or equity in partnership with one’s community. Build accountability into the process from the start. The same diverse group of stakeholders who help set the vision for the program can also set the metrics by which you’ll measure your performance. While there is no legal obligation to meet these metrics, relationships with stakeholders — especially employees and external communities — are regulated by trust. Continued failure to meet stated goals damages this trust and sours the brand. Better to not do it at all if you can’t dedicate real time and energy to this involved, yet potentially very rewarding, process. 

In its best form, corporate giving is a healthy and mutually beneficial relationship between the business and the communities with whom they interact. The relationship is also driven by the growing desire of socially-aware consumers and employees to do better for their stakeholders and the world at large.

As you consider embarking upon this work for the first time or refreshing your current programs, you will no doubt find joy in connecting your company with your community in new and meaningful ways with a fresh perspective.

Moving the Needle for Higher Ed

Students sitting in a classroom at their desks. One woman is standing and smiling holding a notebook.

Photo by Javier Trueba

By Stephanie Ellis-Smith

When donors think of giving to education, most often one thinks of K-12 education (including early learning initiatives) and four year universities – a major recipient of philanthropic giving. According to Giving USA, in 2020 alone, U.S.-based donors gave more than $71 billion to education, which represented 15 percent of all charitable giving, the bulk of it going to the investment pools (a.k.a. endowments) of elite universities. Giving to education was surpassed only by giving to religion.

Yet, with constantly rising costs, greater numbers of students are saddled with ever-larger student loans and the need to mitigate the rising costs of that debt is increasing as well. (See Robert Smith’s big bet on relieving student debt from the private sector, and of course President Biden's new student loan forgiveness program coming online.) The amount of debt the average student is carrying has gotten so bad, it’s got many going so far as to question the basic utility of a university education. So how can a savvy donor “move the needle” in higher ed?

We too often are forgetting the corner of the education universe that serves more people and offers the greatest chance for economic stability and social mobility: the two-year technical and community colleges. For many high school and returning students, going to a community college can serve as a buffer before launching into the hyper-competitive world of university admissions, but making that transition is not easy. According to a 2013 report, 81% of first year students want to transfer to a four-year college or university, but after six years, only 12% were successful. Today, the percentage has risen only slightly to 15%.

This post will give you a brief overview of what these schools are doing today to meet the needs of rapidly changing demographics and job markets. Understanding their focus may offer some insight into how directing funding to two-year and technical colleges offers a unique opportunity to bolster resources in an underfunded area of education.

***

Community colleges are evolving just as quickly as the needs of its students. For starters, they have altered their traditional business model of offering stand-alone associates degrees to offering baccalaureate degrees. Schools in locations that are not served by a nearby four-year college are the ones most likely to do so and the BAs typically serve students who want to become teachers and either cannot afford or cannot travel (or both) to a major college or university. Though such a big change is not without its critics, adapting to address teacher shortages in rural or otherwise underserved areas has become a crucial service of many community colleges.

They have also formalized their relationships with four-year colleges and universities by becoming official “feeder” schools to partnering institutions. Students who may not have had the initial qualifications to attend or who could not initially afford tuition, can start at the partnering community college and easily transfer credits after two-years while saving on fees. 

While the concept of a transfer student is one we’re all familiar with, another trend at community colleges is the reverse transfer students. These “transfers-in” are students who are  returning to community colleges to improve specific job skills after attending four-year colleges. Also due to rising costs of tuition. For example, a student who had been unsuccessful at a four-year school may go back to a community college to build up enough credits to re-enroll at the four-year school or even get the associates degree they missed out on by transferring out. 

Community colleges also make important contributions to higher-education’s mandate to serve the national interest. They have the most diverse student body not just in race (they collectively serve more Black and Latino students than their four-year counterparts), but in other demographic segments as well like Baby Boomers over 55, single mothers, and veterans. Whether students come to retool for a new career, or reintegrate into society as a civilian, community colleges are developing comprehensive programs designed to help an increasingly diverse student body acquire the education and skills they need to return to the workforce.

For a donor interested in higher education access and creating a wider path to the middle class, these trends are relevant and worthy of consideration. Community colleges tend to serve students with the greatest needs yet receive the least amount of support. Philanthropy is not the only sector to realize the disparity. So far, 19 states have free or debt-free tuition to community colleges and see their success as critical to building a workforce and citizenry ready for a new economy. Your local community college is an important piece of the higher education puzzle that deserves attention. 

***

For more information on the role of community colleges in the higher-education landscape, here are a few resources you might appreciate:

Where Money Would Matter Most by Jay Urwitz

It’s Time to Digitally Transform Community Colleges by Sean Gallagher

What Happens When Community Colleges Offer Bachelor’s Degrees? by Natalie Schwartzman

Why We’re Here–The Impact of Community Colleges on the Future (PODCAST)

Community Development Financial Institutions (CDFIs): A Primer for Donors

By Janell Turner and Nancy Reid

The passing of the bipartisan Infrastructure Investment and Jobs Act (IIJA) last November signaled a commitment to repairing and reconstructing infrastructure consequential to the economic vitality of our nation after decades of neglect. The $1.2 trillion bill aims to improve public transit, reinforce bridges and tunnels, expand access to clean drinking water, and advance environmental justice. Importantly, a portion of the budget is allocated to help remedy decades-old infrastructure design and transportation policies that hindered economic growth in underserved communities.  

In a recent public statement, Transportation Secretary Pete Buttigieg reported on the bill’s transportation budget that directs resources to special programs designed to address the racial inequalities in our nation’s transportation system and infrastructure. But with a budget of only $1 billion, these efforts are unlikely to go very far. What additional investments are needed to establish and strengthen the economic infrastructure required to bring communities of color fully up to par?  And, as Taj James of Full Spectrum Capital Partners asked recently in a conversation about community investing, what forms of capital are our communities of color best able to absorb? And what forms of support can help maximize capital absorption?

While the infrastructure bill aims to amend the bricks and mortar needs of communities, Community Development Financial Institutions (CDFIs) offer an array of complementary investments into our communities’ social infrastructure. Certified by the U.S. Treasury, CDFIs are banks, credit unions, loan funds, and equity capital providers that use a combination of government and private sector capital to invest in low-income communities. Recipients of government CDFI funds have successfully leveraged billions in private sector investments to create jobs, build affordable housing, build essential community facilities, provide financial counseling, and invest in neighborhood revitalization initiatives.  

The Community Reinvestment Act of 1977 initially gave rise to CDFIs by requiring banks to reinvest in communities that were stripped of access to capital through redlining. Almost half a century later, there are hundreds of CDFIs in the United States, ranging widely in size and operations. They include loan funds, venture funds, regulated depositories, and community development credit unions. In the summer of 2020 in response to Black Lives Matter protests, the treasurers of a handful of large U.S. corporations began to take notice of CDFIs as both an investment vehicle and as a way to invest in communities.

Donors who direct philanthropic capital into communities of color have begun to ask themselves what other tools may be available to support economic development. Increasingly, access to capital – affordable loans to consumers and business owners of color – has come into focus as a critical pathway to wealth creation. CDFIs can offer underwriting, diversification, and support for borrowers alongside tailored resources and innovative programs to foster economic opportunity and revitalize neighborhoods. 

While the opportunity to directly support community wealth building is attractive, donors should consider the following:

  • CDFIs can deploy both philanthropic and investment capital.  An increasing number of CDFIs offer investment notes, which aim to return 100% of the funders’ capital with a modest, below-market rate of financial return. Placing loans in underestimated communities requires care and support, which must be funded through grant support. Funders can back either of these activities, or use blended capital approaches to do both. For more information on this investment approach, Capital Impact Partners is the largest minority-led CDFI in the country; their investment note is rated by Standard & Poor’s and investments can be supported with philanthropic capital as well.

  • CDFIs vary broadly in their size and risk.  While many CDFIs fared better than banks in the great recession, funders should understand that any loan, or pool of loans, bears risk. While Standard & Poor’s began issuing ratings to some of the larger CDFIs in 2015, a nonprofit ratings agency called Aeris has gathered data on CDFIs since 2004 and issues ratings on over 150 CDFIs around the country to help investors and donors understand their financial exposure and impact.  

  • CDFIs can offer targeted impact.  Changemakers focused on a particular geography, issue area, risk profile, or population can direct loans through existing organizations that have, in some cases, been building relationships in communities for many years. Aeris has built a helpful tool called the CDFI Locator. Investors focused on a particular U.N. Sustainable Development Goal can sort by the SDGs also.

  • The financial services sector is innovating fast.  Several financial technology (fintech) and investment advisory firms are working to provide their clients with vehicles to access CDFIs. If your advisor hasn’t yet introduced CDFIs as an option for capital that doesn’t require the highest financial return possible, ask them! This type of investing sits at the intersection of return-seeking investment approaches and impact-seeking philanthropy. It may only be a matter of time before it becomes a mainstream option for donors.

  • Donors may direct assets from a Donor Advised fund to a CDFI.  Some DAF platforms will allow grantors to direct DAF assets into pooled loan vehicles like CDFIs. Ask your DAF provider what options may be available to you. 

The first step when considering any new philanthropic strategy is to clarify your intentions. What outcomes are most important to you? Do you envision building affordable housing? Creating jobs? Helping small businesses get started? Think about what you’d like to achieve in your philanthropy and then seek out a CDFI that aligns with your giving strategy. If you’re just getting started and would like support in developing a giving strategy, Phīla Engaged Giving is here to help. 

Lastly, while supporting CDFIs can be a compelling complement to your philanthropic framework through grants and program-related investments, talk to your financial advisor before incorporating CDFIs into your personal investment strategy. To learn more about CDFIs check out  CDFI Investing for the Impact Investor published by Community Capital Management and A Foundation Guide to Investing in CDFIs published by Philanthropy Northwest. 

*The statements and ideas presented in this blog post do not constitute financial advice or an endorsement of a particular financial instrument. 



Loving and Letting Go

Image by Emma Fabbri

By Stephanie Ellis-Smith and Janell Turner

Love is in the air! Valentine’s Day approaches and we are preparing to open our wallets for roses, candies, and nights out (masked or maybe delivery). While that’s all fine, we’d like to use the time to talk about a different kind of love. The ancient Greeks had at least eight or nine words for love. The most well known are eros (romantic love), agape (the highest form of love that is unconditional and spiritual) and philos or philia (brotherly love or friendship). 

Philia is the love between equals who share goodwill toward each other, the root of the word philanthropy. Ancient Greeks defined this deep feeling of friendship to include loyalty, the sharing of emotions (both good and bad), and a sense of shared sacrifice. Philia is a virtuous, intimate companionship that in its highest and best form, can describe philanthropy. It’s that aspirational sentiment that informs the name of our boutique advisory and the premise by which we operate. Though our work is only with donors, we are extremely conscious of the roles and balance between the givers and the beneficiaries they wish to serve. But philanthropy is in the midst of a period of profound change. Post 2020, managing that balance is no longer enough. We saw that the basic systems of governance, health, and justice that we assumed would support us and nurture us instead failed us. Givers and philanthropic professionals alike took hard assessments of themselves and decided that to do our part in repairing these systems, a bigger, greater love was needed.

Perhaps instead of philia, it is agape, the selfless, unconditional love for the entire world: neighbors, strangers, everybody is a better expression of our hopes/desires for philanthropy. Existing on the spiritual plane, it is the highest form of love – and the one in shortest supply in today’s society. Empathy fuels agape; it is given freely without any desires, expectations, or judgment. 

We’ve begun to see this kind of self-sacrificing love take root in the world of philanthropy, particularly within the realm of donor-beneficiary relationships. Donors are beginning to seek authentic relationships with beneficiaries where open, honest, and transparent conversations can take place. They are letting go of some of the limiting norms and narratives regarding performance, outcomes, reciprocity, and recognition that have defined traditional philanthropy. They are more focused on and curious about systemic flaws in society rather than their manifestations and are willing to experiment with new ways of giving. Most importantly, they are beginning to acknowledge their inherent power as givers and make room for others at the decision-making table.  

This agape framework defines our hope for philanthropy in the future and where we at Phīla believe philanthropy is headed. In our client conversations, we’re diving deeper into the “why” and “for whom” of their giving with less emphasis on the “how” and “what” as leading strategies. 

Put into practice, this approach to philanthropy may be expressed through the six Trust-based Philanthropy principles aimed at advancing equity, shifting power, and building mutually accountable relationships:

  • Offer multi-year, unrestricted funding

  • Do your homework first

  • Be transparent and responsive with your beneficiaries

  • Streamline your required paperwork

  • Solicit and accept feedback on your practices

  • Offer support beyond the check

We acknowledge that it’s not easy making these shifts, but the times are asking us to reevaluate past practices with the hope that we will forge a new path forward. Will it be a success? No one knows, but we do know that (quoting The Great One, Wayne Gretzsky) “you miss one hundred percent of the shots you don’t take”. Taking a shot might mean getting out of your comfort zone and plunging into the unknown where the highest expression of love and vulnerability intersect. It might mean taking risks and accepting whatever losses that come with letting go. But what is there really to lose? We challenge you to confront your assumptions about your role as a giver and incorporate the spirit of agape into your philanthropic practice. If you would like to learn more or want support in incorporating these principles in your giving, let’s talk. Happy Valentine’s Day!

This is the Year

by Lauren Janus

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In early December of 2021, our full Phīla team enjoyed a rare treat in these pandemic heavy times. All five of us met for an in-person mini-retreat in Seattle. 

We used the meeting to dive deep into the values we as a group bring to Phīla and our work with clients. Importantly, we reaffirmed our commitment to Phīla’s core values of empathy, respect, knowledge, collaboration, and continuous learning. 

Yet we kept coming back to one additional value or core principle in our conversations: we hold our clients and their philanthropic aims in such high esteem that we clearly tell clients when they need to make changes to their giving. We don’t pander, overly congratulate, or stay silent when we see ways our clients could be giving in a way that better serves their stated values. 

Therefore, here’s what we want to tell you, our clients and friends, in 2022: plan on making significant political donations this year. Here’s why.

  • For the first time since it was decided in 1973, Roe v. Wade is in clear danger of being overturned. This is a terrifying possibility for women, families, and our society as a whole.

  • While awareness of the need for racial justice in America is growing, actions haven’t caught up with the rhetoric and this needs to change starting in 2022. 

  • And finally, the recent suburban wildfires (in winter!) in Colorado prove that our planet is on a rapidly warming trajectory with no signs of slowing. 

The most powerful thing we as ordinary citizens can do to avert these dangers and set our country on a truer path toward justice and healing in 2022, is to support political candidates who share our sense of urgency on these issues. This means voting, but it also means giving to and volunteering for political candidates and causes in a big way.

This November, 34 of 100 seats in the Senate will be up for election. Those elected in the fall of 2022 will begin their six-year terms in January of 2023. 

Currently, the Senate is split 50/50 with the slimist possible control in the hands of the Democrats, thanks to Kamala Harris and her tie-breaking vote. The GOP, once a party of problem solvers and leaders willing to compromise for the good of society, is now controlled by extremists who feed on each other’s anger and resentment. The GOP can regain the Senate by netting a single seat in November. In the House, Republicans need to net just five seats to regain the majority. It’s going to be a very close election season.

By making significant political donations, you may feel you’re contributing to the outsized role of money in politics, and we hear you. But the fact is that when it comes to issues as critical as these–climate change, racial justice, gender equity and the preservation of our democracy in general–Congress alone has the power to create the kind of widespread structural change needed. Philanthropy is ill-equipped to solve these problems on its own. We must get the right people in the right seats starting in January 2023. 

As Marianne Williamson said, “You playing small doesn’t serve the world. There’s nothing enlightening about shrinking so others won’t feel insecure around you. As you let your own light shine, you indirectly give others permission to do the same.”

From your friends and allies at Phīla, please don’t play small in 2022. Before you put money into a Donor Advised Fund or make a major gift to a non-political organization this year, pause a moment. Think about how much of that gift you could direct to a political candidate or cause in 2022 (and yes, forfeit the tax deductibility). Consider how impactful that gift could be on the full range of issues you support if it went to a 501c4 organization, or to a political candidate who can advocate for the issues that are most important to you.

We join you in your concern for our country and our world in these trying times and hope you’ll join us in putting your money where your passions are in 2022. We’ll be right there with you.

Wishing you peace, health, and community in 2022.

What Matters Most?

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By Nancy Reid, Impact Strategist

You know it when you see it—a person or group who knows what matters most to them, and who acts accordingly. Some of them are lucky enough to have resources—philanthropic capital, investment capital, social capital, and time—to bring to bear in addressing those issues. The WNBA players on the Atlanta Dream who spoke out for voting rights in Georgia and Patagonia and its decision to withdraw its products from fundraisers for sedition-backing politicians both strike me as examples of people and groups who’ve identified what matters most to them, and acted on it with boldness and clarity.

So I’m always amazed when I have the opportunity to work with people who are taking thoughtful action to advance the issues that matter most to them through philanthropy or politics, but who haven’t applied that same lens to their investing lives. They may have clarity on how they want to use their political or philanthropic giving in order to affect change in the world. They may volunteer on projects that are important to them. And they may even drive an extra 15 minutes to buy from a store that treats its employees well, rather than shop at one that doesn’t. But when it comes to their investing, they avert their gaze.  

We are all susceptible to this. Investing can be technical and obscure. It’s difficult to know where and how you can exert influence; and when we try, we fear we may risk losing all our money! But in a world in which the profit motive drives outcomes, from carbon emissions to hiring policy, those of us who own businesses bear some responsibility for actions taken on our behalf.  

How can we concern ourselves so greatly with each donation, and even stand in the supermarket aisle reading the fine print on food labels, while ignoring the pressures that our investment decisions are exerting on the world around us? For those of us lucky enough to have significant investments, the footprint left by our investing activity is far greater than that left by most of our other decisions.  

Like a philanthropic advisor, I have the privilege of guiding clients to greater clarity on what matters most to them, but in my practice, I help them find ways to reflect and advance those ideas in their investing lives.  I’m not a financial advisor—I don’t sell investment products or recommend specific strategies. Instead, I help people identify the issues and ideas that matter most to them and then use those issues as a framework to evaluate their current financial lives. Are you a feminist whose entire advisory team is male? Do you donate to environmental organizations while your investments include multinational corporations who lobby against climate change legislation? Are you wearing a Black Lives Matter shirt, while your portfolio includes for-profit prisons?

Not everyone feels ready to face the power they hold as investors, and to take responsibility for all that’s being done in their name. In many cases our choices are constrained by family members, trusts, and limited resources. When I work with a new client, in addition to asking about their learning and decision-making style, I also often ask about their appetite for disruption. For those who aren’t ready or able to completely upend their financial life, here are a few steps to consider taking as we begin to take greater responsibility over what we own:

  • Before your next meeting with your financial advisor, write down a few questions you’d like to get answered and send them to your advisor in advance. There are no stupid questions. Questions like “Do I own oil pipelines?” or “Do any of my fees go to pay for lobbyists?” can be an easy place to start. If you’re feeling very brave, you can ask more difficult questions like “What’s the gender composition of the boards of the private companies in which I hold investments?” Keep in mind that these may be new questions for your advisors as well, and they may not be able to answer right away.

  • If you’re looking for ways to engage your adult children in the topic of investing, ask them what kinds of business behavior they wish they could see in the world. Are they concerned about carbon emissions, forced arbitration for sexual harassment claims, or hiring practices? If so, working with your advisor to research these practices among the companies you’ve invested in may be illuminating.

  • If you have a donor advised fund (DAF), ask your representative how the assets in your DAF are invested.  Most DAF platforms have “socially responsible” investment options that you may not know about—and that even your representative may not know about. Switching to a socially responsible investment option probably won’t make a big difference in the real world, but it may send a message to others that you are interested in this topic.  

I’m not here to tell clients what to do or how to invest. I am here to ask gentle questions about what matters most, to dare people to be just a little more brave than they were yesterday, and to share a vision for the impact that thoughtful investors can have on their advisors, their communities, and the global financial system.

We are thrilled to have Nancy join the Phīla Giving team as a collaborator. She can be reached via email at “nancy (at) philagiving.com”. And here are a few resources that you might find useful.

What Nancy’s reading this month:

Where you can find Nancy teaching later this month:

Activate Your Money: Impact Investing 201



Bringing the Family Business into Philanthropy

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by Stephanie Ellis-Smith

I’ve been reading a lot about what has become of all the pledges business and corporations made to racial justice and economic equality after the reckoning of 2020. According to one statistic, of the $50 billion dollars pledged, only $250 million was actually given. Yikes. While that stat is almost entirely about large corporations like JP Morgan Chase, Google, and others, smaller family businesses can take a lesson from it. Today, more than ever, the world is watching not just what you say, but what you do--or don’t do, as the case may be!

So how does a business make good on its desire to give back at a time of great need? This blog post offers a few ideas to help you get started. And of course, we are always happy to have a conversation, if you have specific questions.

First, some data to set the scene. A study published in the Harvard Business Review found that family businesses maintain high levels of corporate social responsibility (CSR) regardless of what the business environment is. Additionally, an impressive 81% of the world’s largest family businesses are engaged in philanthropy, which shows just how important CSR is to family enterprises. 

Why do family businesses focus on philanthropy, corporate responsibility and giving back? Here are three key reasons:

  1. To attract talent: millennials, as the largest generation, and Gen Zs moving into the workforce, all want to work at places that contribute to the common good. It’s a great tool for employee engagement and retention.

  2. To deepen family legacy: this one is really important. The desire for an owner to pass on the business within the family is a significant driver behind an organization’s philanthropic goals. Ernst and Young’s recent Family Business Philanthropy report indicated that family business owners with strong trans-generational intentions are particularly concerned about the well-being of future generations, and are therefore more motivated to address long-term social and environmental issues by engaging in philanthropy. And further, participating in philanthropy as a family (at home or in business) helps to keep the bonds of family strong over generations. Giving together publicly demonstrates a family’s core values and unites them behind a common cause.

  3. To strengthen their voice: organizations with a clearly defined purpose, often exemplified by a philanthropic strategy, typically experience more growth, have higher customer satisfaction, and have a reputation as champions for their community. Philanthropy is increasingly a key component to a strong brand.  Now that you have an idea of what motivates family businesses to do this work, we can talk a bit about how it can be done successfully.

First, start with WHY. As I always say to our clients, no one has to engage in philanthropy. Getting comfortable with doing a deep dive into motivations is key. What exactly are you looking to get out of it? Do you want to financially support some really incredible work that's already happening in your community? Do you want to engage your employees with volunteerism? These kinds of questions are important to ask yourself, because they will determine what type of nonprofit organizations you might work with, who should be involved, and what level of engagement will be necessary. 

You can find lots of advice and advisors who will tell you how to develop a CSR program in a quick and easy fashion that has a big return on investment, but Phīla does not believe in shortcuts. In this day and age, insincerity and slapdash programming are easily detected and you could end up doing more harm than good to your business. Take your time to ask yourself the right questions.

Decide on your goal or vision. When deciding on where you will have impact, it is not enough to simply settle on the vision that your CEO or founder is partial to. Vanity projects will only get you so far. Instead, create a thoughtful and intentional process that brings together family, customers, and employees to determine which issues lie at the intersection of the business’s mission and the unmet needs of your community. Spending time on deciding how the values the business espouses connect with your philanthropy will make it easier to make decisions in the long-run.

The objective of this exercise isn’t to arrive at a goal that sounds impressive. In fact, the simpler it is, the better. The goal is to arrive at a vision for your community that your company is best equipped to play a part in creating. The temptation is to jump right in to picking issues and organizations to support, but in reality, having a program you can be proud of and that has longevity requires learning about your community, listening for understanding from your stakeholders, and building trust. It takes time.

Don’t be afraid to take a stance. At this moment, during the ongoing uncertainty of the pandemic, a fragile political environment, and calls for racial justice growing by the day, taking a stand means it’s likely that you won’t make everyone happy. The company must be prepared to decide if it is okay with losing business from certain groups since taking money from those groups would run counter to its philanthropic values and strategy. Being consistent and knowing the issues at hand are as important as ever. A couple of examples of how businesses take a stand on issues important to them are restaurants that make public that they’re discontinuing their use of plastic straws and telling customers why; or retailers who actively reach stock suppliers of color and state why they find it necessary. You get the idea.

Establish mutually beneficial partnerships with nonprofit organizations by doing the legwork to understand your company’s role in the broader ecosystem surrounding that goal. Get to know the community on a deeper level and learn how the issue you care about has had an effect, past and present. Think about what you really want to get out of your relationship with the community. If it's a big employee-driven, social justice initiative that the company really wants to step into -- like what Starbucks or Patagonia did with their environmental focus --  then that affects the kinds of conversations you have with nonprofits. You're not going to be working with a small community-based organization. They don't have the wherewithal to respond, they don't have the data, the metrics that a marketing team is going to need or want to justify it. That's going to be your much larger, maybe national, organizations that can meet you eye-to-eye, head-to-head, and give you the types of things that you really need. Conversely, if you're looking to be embedded in a community, then that's a different kind of conversation with maybe smaller organizations.

Family businesses understand the need to partner with nonprofit experts on the issues they care about, and even more so if they are looking to engage with communities of color. It is important to ensure that these are not token partnerships, but authentic and mutually beneficial for both the business and the local partner. (For a deeper dive into embedding racial equity into corporate social responsibility, check out a webinar I participated in called Turning Statements Into Action.)

Kristin Jarrett, a community and social impact strategist at Booz Allen, advises large and small businesses to meet with nonprofit organizations and ask them about what big problems they are trying to solve and how you can help. She wisely suggests that businesses stepping into the social sector should plan to “do some backwards planning and create ideas around how you could collaborate to really support them (i.e., nonprofits) in their mission.”

Regularly check in on your progress. Philanthropy is an ongoing commitment to achieve a vision of justice or equity in partnership with one’s community. Build accountability into the process from the start. The same diverse group of stakeholders who help set the vision for the program can also set the metrics by which you’ll measure your performance. While there is no legal obligation to meet these metrics, relationships with stakeholders — especially employees and external communities — are regulated by trust. Continued failure to meet stated goals damages this trust and sours the brand. Better to not do it at all if you can’t dedicate real time and energy to this involved yet potentially very rewarding process. 

In its best form, philanthropy in a family business environment is a healthy and mutually beneficial relationship between the business and the communities with whom they interact. The dynamic is also driven by the growing desire of socially-aware consumers and employees to do better for their stakeholders and the world at large.

As you consider embarking upon this work, you will no doubt find joy in connecting your family business with your community in new and meaningful ways.