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. 

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

Man in silhouette overlooking body of water

By Stephanie Ellis-Smith, Founder and CEO

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

Quantitative Impact

Assets Under Influence (AUI): $2.8B

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

Growth: Steady and Sustainable

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

Client Portfolio: Expanding

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

Service Offerings: Dynamic

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

Team Growth: From 1 to 8

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

Increased Giving by Clients: $100M

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

Qualitative Impact

Adoption of Equity-Based Practices: 100%

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

Thought Leadership


Sector Influence: Rising

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

Active Followers: Growing

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

Social Media Engagement: Trending

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

Who We Are: Diverse

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

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

Our Year in Review

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

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

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

My husband Michael and I with our haul of greenery

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

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

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

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

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

Enjoying some delicious phở in Hanoi, Vietnam

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

Delighting in the charming seaside village of Cowichan Bay, Canada

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

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

Me and the weeds

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

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

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

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

It’s Time to Retire the Term “High Net Worth”

By Nancy Reid and Stephanie Ellis-Smith

Here’s something radical for you to consider: let’s retire the phrase “high net worth” (HNW), and the even more obnoxious, “ultra high net worth” (UHNW). Despite their ubiquity in the wealth advisory industry, it's time to move beyond them. As an alternative, let’s name it what it is: wealth instead of worth. 

Our team is dedicated to the proposition that all lives are inherently worthy and have equal value. We envision a world in which a person's “worth" is independent of their balance sheet and where individual sovereignty is conferred by a person's humanity, and not by their assets.

Given that vision, should we allow our language to suggest that the world’s poor are of less worth than the rich? Of course not, and we know that anyone reading this is probably having a visceral reaction to that thought experiment. Conversely, by that same logic, should we allow our language to suggest that the value of a wealthy person is equal to, or enhanced by, their money? That is not specifically what we want to impart when we say “high net worth”, but our language, to say nothing of our culture, suggests this implicitly. 

So it’s not a leap to understand why many people in wealthy families, especially the rising gen, have struggled with their self-worth. For many of our clients, to be treated with inflated importance because of their wealth feels inauthentic and hollow. Who among us loves to be praised for something that has little to do with who we truly are?

Moreover, these terms are imprecise. Some organizations define HNW as having assets between $5 and $50 million, and UHNW as assets north of $50+. Others define those categories completely differently. These strata help the wealth advisory community organize themselves and communicate among each other around service offerings. But those euphemisms are not client-centered. It’s more comfortable for some folks to hide behind shorthand euphemisms rather than speak openly about what wealth is and its purpose. Aren’t we all better served by more precise language?

And in a line of work in which we counsel the wealthy to distribute or reinvest their money in ways that are transformative to the people and issues that matter most in the world, we’d be doing a disservice to our clients if helping them reduce their net-wealth resulted in their experiencing a diminished self-worth. To our ongoing delight, the opposite is quite often what happens. Clients are happiest even–– and especially– when they can reduce their taxable estate AND have a significant social impact. In fact, they end up with a GREATER sense of self-worth.

So while it may be a little corny or even a little radical, let’s retire “high net worth” from our lexicon and replace it with a more precise term. Let’s call wealth what it is, and focus our attention and our resources on bringing forth a world in which “worth” is the birthright of every human on the planet and wealth is merely a tool by which our clients can make that birthright a reality for everyone.

My Time at Phīla: Reflections and Learnings

By Olivia Reiten

Olivia when she was a senior at the University of Washington and a new Phīla employee.

Olivia when she was a senior at the University of Washington and a new Phīla employee.

I wasn’t quite sure of the role philanthropic advising played in an individual’s everyday life before I worked at Phīla Engaged Giving. I had assumed it was mostly companies, businesses, or multi-generational families that utilized these advising services. My understanding of philanthropy was essentially that people picked what organizations or causes were important to them, with no real plan as to how much, how long, or why they were giving. I knew giving monetarily could create lasting changes, but I never fully understood the privilege an individual possessed to even be in a position to donate money in a significant way. Working in an environment that deals with individuals and families with significant wealth, and their ability to give it away, I had to reevaluate my own understanding of privilege - especially through the lens of philanthropy. My time at Phīla has shown me how incredibly powerful philanthropy can be when people approach giving with heart and honest intentionality. 

March and May 2020 marked two pivotal turning points within the world, and consequently at Phīla. The beginning of the COVID-19 pandemic in the United States and George Floyd’s murder sparked worldwide reaction and an outpouring of cries for fundamental change in support of social and racial justice. Philanthropic funding was put on center stage as a route to fund this change, and philanthropic advisors were working with donors to move money fast. Being at a small, young company allowed me the opportunity to work outside of the typical job description of an executive assistant and to pivot toward work intended to respond to these events. I was able to focus on areas that were necessary - and personally enjoyable - such as research and the creation of two important resources for the wider philanthropic community. Pull Up for Racial Justice and COVID-19 Response were Phīla’s contributions to the field and donors looking for ways to respond to the two biggest social upheavals in a generation. Taking on the responsibility of creating these two pages was a bit daunting, but it allowed me to further educate myself on the topics while also compiling accessible educational resources for others. Creating those pages involved some of my most memorable work I did while at Phīla, and it taught me how many of the world’s systems intersect with philanthropy at one point or another. 

 Now, being at a point of reflection, I have compiled some of the lasting lessons I have learned while working in the world of philanthropic advising and family philanthropy:

Philanthropy can be done in more ways than one.

At its core, philanthropy aims to help people and communities. While this still holds true, philanthropy has evolved in such a way that anyone can give in some capacity. Monetary contributions are only one avenue. It is also just as important to give via volunteering your “time, treasure, or talents”.

NextGen giving has huge potential.

The great wealth transfer will be instrumental in changing the landscape of philanthropy as we know it. Younger donors of my generation are interested in causes that have received less funding historically: climate change, racial justice, women’s rights, and healthcare access. This new generation of individuals coming into serious money has an attitude of “give it all away”, in the hopes of radically undoing our systematically unequal society. It is inspiring to see young individuals “put their money where their mouth is” and attempt to disrupt the status quo of “traditional” philanthropy. 

Where you choose to give really does make a difference.

While financially supporting big, legacy organizations will remain important, providing funding at the grassroots level will become one of the most important funding avenues we can utilize. Individuals working on the ground and directly in the communities that are in need of funding have the best insight and tools to strategically implement social change.

Lastly, the “big” one: 

Philanthropy doesn’t look the same for everyone, but putting some heart and honest intentionality into the process will make your giving go far. 

 This is the overarching theme I have come to learn while working at a philanthropic advising consultancy and what I love about Phīla’s philosophy. It’s one thing to throw money at a cause or organization, but it's another to take the time to do your due diligence on researching the organization(s), planning a giving strategy, and really diving into the why behind your giving. In my opinion, this is what the world of philanthropy can use more of: honesty. Since philanthropy will look different for everyone, what truly matters is putting your heart into it and being honest with yourself around what you’re really doing and what you hope to gain.

The experience, knowledge, and relationships I have gained while working at Phīla are invaluable, and I will carry them with me. I am lucky to have worked with some of the most inspiring, empathetic, and determined women I have ever met. Phīla has shown me not only the power of philanthropy, but the power of working with individuals who want to help others understand the power of their own giving. As a young individual with white privilege, it is my responsibility to recognize it, continue to acknowledge it, and use it to create space for the betterment of our society. Philanthropy can truly be a powerful tool for change, especially if there is heart and intentionality behind it. With this knowledge, I am inspired to take action and be a force for change.