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. 

Summer Reads to Challenge Our Assumptions

Man reading a book on a bench overlooking the sea. Image by Ben White

By Lauren Janus and Janell Turner

We have a semi-regular tradition each June at  Phīla. As a team of readers, we like to take time out at the start of the summer season to share some of the books we’ve read recently that we deem significantly thoughtful, but also beach read worthy. It is summer, afterall!

In June of 2020, we were deep into the reality of a global pandemic, while only weeks away from the murder of George Floyd. Our blog post then was called Summer Reads for the Times and included several of Lauren’s picks for books on racial equity in America. In 2021, we all needed a lift, so our picks focused on diverse, inspiring stories. We called that post Summer Reads that Celebrate Humanity. And in 2022, we were just too busy and didn’t get a book post out. Sorry friends!

This summer, we are back in the reading saddle so much that two of us (Janell and Lauren here) wanted to share our suggestions for your warm weather reading. As we talked about the books that have moved us in the last year, a clear theme emerged: one of challenging assumptions to build empathy for those climbing their own mountains. In that vein, we are pleased to present Phīla Book Picks for Summer 2023.

Nonfiction

Hidden Valley Road: Inside the Mind of an American Family by Robert Kolker (Janell)

This story resonated deeply with me as it struck a chord with my own experience. Witnessing my younger brother’s journey as he developed schizophrenia in his early twenties, after showing immense potential in his writing and spoken word career, has been both heartbreaking and eye-opening. Kolker’s portrayal of the Galvin family’s struggles evoked profound emotions and reflections, reminding us of the remarkable power of family connections and the resilience that can illuminate even the most challenging circumstances. Through meticulous research and vivid storytelling, he gently peels back the layers of mental illness within the Galvin family and skillfully humanizes the complex world of mental health, offering a compassionate lens into the challenges faced by both individuals and loved ones. A compelling read for anyone seeking a deeper understanding of the human experience within mental health. 

The Myth of the Silver Spoon; Navigating Family Wealth and Creating an Impactful Life by Kristin Keffeler (Lauren)

This spring, our entire team read Kristin Keffeler’s thought-provoking dive into the often unexpected challenges and struggles of those living with wealth. Keffeler comes from a wealthy family herself, and uses her background in psychology and lived experience to coach primarily younger people who grew up surrounded by the opportunities–and expectations–that often come with an outsized inheritance.

Through stories and insights on brain development, Keffeler paints an empathetic picture of ultra high-net wealth families. She tells of children who grow up unintentionally coddled, only to be pushed out into the world with the assumption that they’ll behave exactly like the high achieving family members that came before them. As one could imagine, these sorts of expectations can lead to high levels of depression, despair and emotionally fraught relationships. Thankfully, Keffleler also offers plenty of evidence-based advice on “clearing the emotional clutter” and finding purpose for those for whom money has always been a given.

Cutting School; The Segrenomics of American Education by Noliwe Rooks (Lauren)

As the parent of two elementary school-aged children, I think a lot about education…what it can mean to different types of children, how to support teachers, and how our system of education in the US often too fails children of color, those with disabilities and the poor. That’s why I devoured Noliwe Rooks’ book on what remains a segregated school system in America, where Black and Brown children’s educations often become opportunities for “businesses to make a profit selling schooling.” If you read it, please let me know what you think, especially of the chapter, “White  Philanthropy, Black Education.” We’ll get coffee and talk about it. 

The Art of Gathering by Priya Parker (Janell)

This book drew me in from the very first page and inspired immediate action. It’s like having a secret weapon in your pocket as a host, event planner, professional advisor, or anyone who is looking to create unique, memorable experiences with friends and loved ones. Parker's insights are pure gold as she dives into the nitty-gritty of creating gatherings that truly matter. She goes far beyond the usual logistics and shows us how to create authentic connections that leave a lasting impact. I can't stress enough how much I appreciate her emphasis on being intentional, inclusive, and purposeful in how we bring people together. Plus, she brings everything to life with interesting real-life examples that make you go, "Aha! I can do that!" This book is a game-changer for anyone who wants to bring people together, spark action, and strengthen our communities. You don't need to be a fancy party planner to get something out of it. It's a must-read!

Fiction

The Love Songs of W.E.B. Du Bois by Honoree Fanonne Jeffers (Janell)

This book has claimed the top spot in my women's book club, emerging as the standout read of the year. It swept me away, gently whisking me back to my cherished southern roots. Within its 800+ pages, we discovered a treasury of vibrant prose that pays homage to the teachings and literary legacy of W.E.B. Du Bois. Jeffers skillfully weaves together a tale of familial bonds, love's enduring power, unwavering resilience, and the pursuit of identity—a narrative that captivates and draws you closer with each turn of the page. As the story unfolds, she breathes life into history's forgotten corridors, taking us on an unforgettable journey through time, unraveling the multi-generational saga of a fictional Black family in the heart of Georgia. Veronica Chambers, in her review for the New York Times Book Review, astutely observes, "The historical archives of Black Americans are too often filled with broad outlines of what happened—accounts of injustice, enslavement and oppression—and not the details of how Black people lived and breathed, thought, wondered, wandered, dreamed, and prayed." Jeffers fills this void with unmatched finesse, transporting us into a world where the vibrancy of Black lives pulsates on every page.

Have a wonderful summer!

Addressing the Emotional Aspects of Wealth: Five Tips for Families

6b0cc421-61e3-456b-807d-ce09a33f1772.jpg

Talking about wealth is almost always emotional exercise. It can bring on a whole range of feelings, many in conflict with one another: guilt and pride, anger and happiness, connectedness and isolation. Yet one of the most common emotions that wealth (or the lack of it) elicits is fear—fear of being taken advantage of, fear of not being liked, fear of not having enough. The list goes on. And further, the devastating effects of the COVID-19 pandemic has blown the cover off of the United States’ stark inequalities. Over 3 million people are out of work, and many more are without reliable access to healthcare. The 2020 COVID metaphor is apt: we are all navigating the same stormy sea, but we’re in different boats. When your boat is large, sturdy and comfortable, it can feel doubly isolating to have so much security when others are struggling for basic needs.

For people with children, these conversations are especially challenging. Just as you are trying to sort out your own feelings, you also must tend to young people who are acutely aware of social inequities and often have excellent questions wondering why they exist. And it’s not just about those who have less. Even for those who have objectively "made it”, all it takes is one look up the social ladder to see that you are still far from the top. In fact, in our climb up the wealth ladder, our gaze is nearly always upward, toward those who have still more, and it fuels desire to join their ranks. But in reality, it’s a losing battle. I once read a Wall Street Journal article that said the difference in assets held by the top .01% versus the top 1% is greater than that between the 1% and the rest. It’s an incredible perspective, yet we rarely turn around and look at those behind us. We tend to focus on what we lack. Children notice these differences too. While we can’t dispatch with these emotions entirely, we can mitigate their influence in our lives by shifting our focus. Here are five ways that might help you navigate these feelings:

  1. Struggle is OK. All parents want to see their children succeed and not experience hardships in life. That is normal. However, when a family is the steward of significant wealth, that natural desire takes on much more weight. How do we allow for the natural instincts of parenting while also not becoming “snow plow parents”, i.e., parents who plow every obstacle out of the child’s way to create a clear, unobstructed path to success? Allow your children to try, fail, and learn from failure. 

  2. Share family stories that do not involve money. Create a family narrative around who your family is that does not involve what you own. Perhaps it’s your family genesis story, or how it came to be rooted in the city you’re in. We inherit more than money. We inherit a set of mores and values that define our family and ourselves as its members for generations. Share the sayings and anecdotes that make your family unique and bind you to higher ideals.

  3. Re-evaluate the purpose of work. If you had the chance to do what you love and not have to worry about being paid for it, would you do it? Most would automatically say ‘yes”, but looking deeper, it may not be so easy to do. We live in a society that says “you are what you do”, and being paid lots of money for your work says what you do is valuable. With wealth, you have the opportunity to rethink the nature of work. While for most, work is a means to an end, but it can also be about purpose, pride, and satisfaction. There’s a prestige to certain professions, but the real challenge is to move beyond social status and focus on what’s right for your child. Be open to their exploration of pursuits that aren’t highly paid. Allow your children to explore work (paid or unpaid) that brings them satisfaction, a sense of purpose, and joy.

  4. Acknowledge your privilege. Regardless of how it came to you, there is an undeniable privilege that comes with having money. While money can’t buy happiness, it does buy convenience. Maybe your kids don't need to work during high school. Or they won’t have student loans while their friend is on work-study or is graduating with debt. Recognizing the ease that having wealth affords won’t make your situation similar to your peers, but being more aware of your advantages also recognizes others who have a different experience. No, not everyone will appreciate it, but there is integrity in honesty.

  5. Philanthropy benefits the giver as well as the receiver. Philanthropy can be a great tool to help raise children with values and position them to have a healthy relationship to wealth. Giving to others reminds them (and us) of how a strategic yet moral deployment of philanthropic dollars can benefit a family for generations. As Charles Collier stated, “wealth itself is morally neutral, but how it is used is what matters.”

While these tips were written with raising children in mind, they apply to anyone struggling with how to make sense of wealth. And there are certainly more. One of my roles as a philanthropic advisor is to help my clients come to terms with what they have so that they can make good decisions in giving it away. If you find yourself wanting to become more engaged in the public sector in general and philanthropy in particular, but are struggling with how and where to plug in, let’s talk.

Additional recommended reading on this topic:

We Need to Talk, by Jennifer Risher

Uneasy Street: Anxieties of Affluence, by Rachel Sherman

Classified: How to Stop Hiding Your Privilege and Use it for Social Change, Karen Pittelman