Philanthropy – Quote Catch

“The Heritage Process helps people put their family before their fortune as they plan. In doing so, the chances that the family can thrive in its relationships and still prosper materially for generations are greatly enhanced. Families who go through the Process come to a better understanding of their relationship to wealth, and with one another. They learn to communicate more clearly and more honestly about things like money, philanthropy, as well as about their shared goals and objectives. They learn- by doing, not just by talking- how to make the money a tool to achieve the most important goals of all-family unity and individual achievement. They listen to stories about the hardships and triumphs that brought the family to where it is today, and they talk openly and from the heart about deeply important matters, like the sustaining quality of faith.” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 8
“Andrew Carnegie’s religious faith led him to the conclusion that such wealth should be put to use for the betterment of humanity; he subsequently gave most of his money to public libraries and other charities. He had no illusions about the effect of unearned money on children. In a letter to a friend, Carnegie said: ‘The parent who leaves his son enormous wealth generally deadens the talents and energies of the son and tempts him to lead a less useful and less worthy life than he otherwise would’” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 39
“Emotional inheritances are quite different. They are composed of the values that you experienced and absorbed from your parents, grandparents, and other important people in your life. These people of influence may have taught you these values explicitly, or perhaps you picked them up simply through living around them and interacting with them. It is tis emotional inheritance (added to and enriched by your own life experience and living example) that you will pass on to your family and other people you know, whether or not you leave anything amounting to a financial inheritance. This emotional legacy is no less than the sum total of your life experience as evidenced by the values by which you lived. Values such as work, faith, philanthropy, and honesty. You received an emotional inheritance from your parents or grandparents while they lived. Your own children and grandchildren are receiving theirs from you right now.” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 46
“It is interesting to note the point at which wealthy Americans become involved in giving. According to J.P. Morgan Private Bank, Americans seem to start giving ‘serious’ chunks of their money away once they are worth around twenty million dollars, whereas in other countries the threshold is around one hundred million dollars.” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 148
“Earlier we cited a statistic from the Boston College of Social Welfare, which estimated that over the next four decades some forty-one trillion dollars will be transferred from one generation to the next. Paul Schervish, one of the authors of the study, estimates that as much as six trillion dollars of that transfer might be devoted to philanthropic purposes. Schervish also says there has been a fundamental shift in the motivation of forgiving. ‘The rich used to give money only when they were scolded into it,’ he says. ‘Now they are increasingly giving out of a sense of doing something they want to do, that meets the needs of others, that they can do better than commercial interests, government or existing philanthropy. They can express gratitude for their wealth, and their identification with others less fortunate, and that makes them happy.’” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 148 -149
“The same principle can be applied to children: ‘Don’t overfund children- you’ll ruin them. It will impair their character and destroy their motivation to succeed.’ When children study the plight of people in need, and they understand that they have the wherewithal to do something about it, it is a powerful experience. That is especially true of children who have never experienced scarcity in any respect. With knowledge about the needs of others, children can experience scarcity from the vantage point of the helping hand in the field. As one advisor put it, ‘Instead of merely sailing on a sea of riches, children can experience an ocean of needs.” Beating the Midas Curse, by Perry L. Cochell and Rodney C. Zeeb, Page 150
“Below, drawing on the work of The Philanthropic Initiative, are three levels (above ground level). 1. Dormant but receptive: Gives when asked but passively. 2. Engaged, Getting Organized: May have a transactional vehicle like a foundation or donor-advised fund; getting engaged in causes; beginning to think strategically about philanthropic impact. 3. Committed to Philanthropy, Passionate about a Cause, Committed to Lifelong Learning about How to Achieve Impact” A CONCEPTUAL FRAMEWORK FOR PLANNING WITH PHILANTHROPIC TOOLS. Phil Cubeta, CLU, ChFC, MSFS, CAP, The Sallie B. and William B. Wallace Chair in Philanthropy at The American College
“Traditional philanthropy entails giving money to a nonprofit. It is the nonprofit’s obligation to then get social results in line with donor intentions. A new view of philanthropy, termed “catalytic” by Mark Kramer, a former venture capitalist, now head of FSG Social Impact Advisors, holds that what matters are results and that the donor—if the donor has the vision, creativity, and wealth—is responsible for getting the social result. To get those results, the donor, social investor, or activist citizen may or may not give money to a nonprofit. Tax benefits are secondary to total social impact achieved measured against total resources expended. An example of a catalytic philanthropist is Thomas Siebel, founder of Siebel Software Systems, Inc. He owned a home in Montana and was concerned about rampant methamphetamine (“meth”) addiction. His research showed that potential users were ignorant of the consequences. Rather than writing a check to a nonprofit, Seibel simply did what needed doing himself. He hired an advertising firm and saturated television and radio with ads dramatizing the brutal effects of meth addiction. His Meth project, from 2005 to 2007, led to a 45 percent reduction in meth addiction among teens and 72 percent reduction among adults. Meth-related crime fell 62 percent.” A CONCEPTUAL FRAMEWORK FOR PLANNING WITH PHILANTHROPIC TOOLS. Phil Cubeta, CLU, ChFC, MSFS, CAP, The Sallie B. and William B. Wallace Chair in Philanthropy at The American College
“The CAP has to understand the “Tax and Tools,” but may be the only person at the planning table trained to go beyond them to social impact and catalytic philanthropy. Then, the CAP works back and forth between personal finance and the levers for change that the client wishes to use. The CAP, of course, then makes sure that where financial and tax advantages are possible, those advantages are fully optimized. Is giving to a think tank deductible? How about lobbying? Litigation in the public interest? A movie company making films about corruption or injustice? Can a foundation (given the many rules about fiduciary responsibility) invest in a very high risk start up that funds a new drug? Should the donor wishing to do a public service advertising campaign start a nonprofit, or do the initiative under the wing of a nonprofit, so that the cost of the campaign would be tax deductible? A CAP may be asked to research such issues.3 What drives the conversation of catalytic philanthropy is the relentless desire to change the world, by whatever levers are available, in line with the client’s goals, in the most efficient way possible. Welcome to the leading edge!” A CONCEPTUAL FRAMEWORK FOR PLANNING WITH PHILANTHROPIC TOOLS. Phil Cubeta, CLU, ChFC, MSFS, CAP, The Sallie B. and William B. Wallace Chair in Philanthropy at The American College
“Being on the “right side” of the table, for Scott, meant forgetting about what you wanted to sell. The question was what did the client want to achieve? What dangers did clients have that they wanted to eliminate? What opportunities did they want to capture? What strengths did they want to maximize? Above all, what was the big picture that clients had for themselves, for their families, and for their businesses? Scott’s approach looked at clients as whole human beings who had concerns and aspirations that spanned their own lifetimes and beyond.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page XIV-XV
“Probably the biggest thing that all client-centered advisers share is a particular quality of client. These clients are very intelligent, successful, multi-dimensional individuals who demand custom-designed service in all areas of their lives. For that reason, only a certain kind of adviser will be acceptable to them.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page XV
“If you would sell what John Smith buys, you must see through John Smith’s eyes.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page XVI (The Right Side of the Table, Financial Planner, Selling, Clients)“What happens when the wealth holder consciously becomes aware that they have more financial resources than they are ever going to need? They begin to come to grips with the fact that wealth is not the end point they spent a lifetime perceiving it to be. No, wealth is merely the means to an end. Somebody moved the prize and the spot is vacant. Where should they place their daily focus? Contemplative wealth holders are beginning to see wealth as an accelerator. It is a tool for magnifying the meaning and purpose in life. It provides leverage. But leverage toward what?” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page 7
“We have found that while advisers are focused on eliminating estate taxes and directing more and more money to the heirs, wealth holders are more concerned about what will happen to the heirs when the money’s in hand.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page 18
“But what troubles me most is … what I see in the world and what is not going on in philanthropy to address it – how most philanthropic response has an astonishing lack of urgency.” Reflections on Two Decades of the Poetry and Practice of Philanthropy by Peter Karoff . Page 2.
- ”Within the journey of becoming a donor is a philanthropic curve – here is what it looks like:
  - Level One – you become a donor: A complex combination of personal and religious values, family background, business and social pressures, ego, and heart-felt response to the world around you motivates you to become a donor. Giving becomes part of your way of life, your position in the community, your yearning to be a good person. Over time, giving becomes somewhat automatic, demands on you increase, and you are on many lists. Your gifts, with few exceptions, are distributed in small amounts to an increasing number of organizations. Sound familiar?
  - Level Two – you decide to get organized: The goal is to get control of the giving process, instead of the process controlling you. You review what you have done over the last several years, and think about what gifts have given you the most satisfaction, and what really interests you. You decide to be less reactive to requests, learn how to say no, begin to determine priorities, develop criteria, and make fewer but larger gifts.
  - Level Three – you become a learner: You realize that you don‟t really know enough about the issues that interest you. You roll up your sleeves, do some research, visit your community foundation, talk to experts in the field and with other donors, make site visits to relevant organizations, and survey the literature. If you cannot do all this, you hire someone to do it. Out of that process comes a clearer focus, a clearer understanding of the issue, and the organizations you support reflect that focus. You have now made a distinction between the gifts you must make, and your real philanthropy.
  - Level Four – you become an issue and results-oriented: You want to maximize giving, and increase the chances of making a difference. You are more concerned with results and evaluation. You look harder at the underlying issues, and the ways your available resources can be best applied. You invest in the most talented non-profit entrepreneurs. Gifts to organizations focus on building their capacity. You have become increasingly proactive and rather than simply responding to requests, you go out, or have someone go out, search for and fund the best people and organizations.
  - Level Five – your philanthropy is leveraged: You develop and fund custom-designed programs that meet specific programmatic objectives. You collaborate with other donors, you establish networks that cross domains and include public-private partnerships, and collaborations with business. You attempt to create models that can be adapted, and that will attract other private and public resources. You have become increasingly competent about the issues, about what works, and about what can really make a difference.
  - Level Six – alignment: Your values, your passions, and your interests are aligned. Philanthropy is among the most exciting and satisfying things you do.” Reflections on Two Decades of the Poetry and Practice of Philanthropy by Peter Karoff. Page 7.
“We are indebted to our parents for many things but one of the most important examples for us was that no matter how tough times got, my mother believed that we were better off than some and had an obligation to share with those less fortunate.” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
“When confronted with the favorable financial situation we were in at retirement we made the decision to balance the use of our assets between three areas. First, after a career of hard work and curtailed enjoyments such as travel we wanted to assure ourselves of a good but not lavish lifestyle, secondly, we wanted to make sure our 5 children inherited something of significance that might provide a foundation for their own retirement and finally we felt that in view of our family blessings that an equal amount should be given to those less fortunate. Only by having and living a plan that provided for all three of these objectives could we be happy and proud during our golden years. Once this decision was made our only other decision was what causes we wanted to support.” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
“We live in a world of both incredible wealth and startling poverty. There are more wealthy Americans than wealthy individuals from any other industrialized country. Thus, the moral, social, and economic responsibility of this country’s private sector to give of its excessive wealth to those in great need continues to intensify. While foundations and corporations get much of the visibility and recognition for their charitable giving benevolence, the vast majority, over 80%, of giving comes from individuals.” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
“I have also come to realize that the key for any financial planner desiring to build and serve an affluent clientele is knowledge and credentials indicating that he/she has an appreciation and knowledge of the tools for philanthropy that can be helpful to more affluent prospects far more than most people realize.” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
“For the Washington DC area it is estimated that 1.604 million estates will occur during the 55 year period from 2001 through 2055. These final estates will be valued at 1.260 trillion (2005 dollars) at the time of death if wealth grows in the area at an average rate of 2%. If historical patterns hold, $47 billion will be distributed in estate fees, $321 billion to government, $169 billion to charity, and $723 billion to heirs. The $169 billion of potential charitable bequests constitutes 13% of the $1.260 trillion value of final estates. In a 4% growth scenario, $1.175 trillion or 25% of a total of a total of $4.665 trillion at time of death will go to charity. Finally, the study indicates that the 1.935 million households in the metropolitan area in 2001 will contribute $207 billion before their deaths and $169 billion in charitable bequests during the 55 yr period of simulation. WHAT AN OPPORTUNITY THIS REPRESENTS FOR EVERYONE IN THIS ROOM” .” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
“The top three reasons why advisors believe their HNW clients engage in charitable giving are consistent with the top motivations reported by HNW individuals themselves, which are: being passionate about a cause, having a strong desire to give back, and having a positive impact on society and the world. After that, however, reasons provided by HNW individuals and advisors differ significantly:
The next three most cited reasons by HNW individuals were: to encourage charitable giving by the next generation (30%), religious or spiritual motivations (23%), and because they believe giving back is an obligation of wealth (22%). Meanwhile, advisors believed their clients’ next most popular motivations would include: reducing their tax burden (46%), religious or spiritual reasons (41%), and creating a family legacy (30%). The study found that, in fact, just 10% of HNW individuals cite reducing taxes among their motivations for giving.
Further evidence of a disconnect on the topic of taxes was found when advisors cited a belief that 40% of HNW individuals would reduce their giving if the estate tax were eliminated, and that 78% would do so if income tax deductions for donations were eliminated — whereas just 6% and 45% of HNW individuals, respectively, indicated that they would reduce their charitable giving if these tax policy changes occurred.”
THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
“The reasons advisors and HNW individuals cite for why HNW individuals don’t give or hesitate to give to charity differ even more starkly: • Advisors are under the misimpression that the top reasons HNW individuals may shy away from giving are that they won’t have enough money to leave to their heirs (41%), they won’t be left with enough money for themselves (34%), and they don’t consider themselves wealthy enough to give (22%). To the contrary, HNW individuals cite a concern that their gift won’t be used wisely by a nonprofit recipient (30%), their lack of knowledge about or connection to a charity (24%), and fear of increased donation requests from others (17%).” THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
“Three out of four (74%) advisors say that discussing philanthropy with clients is good for their business for a variety of reasons, including that it: presents a more comprehensive and holistic approach to managing a client’s wealth (24%); demonstrates greater interest in their clients’ charitable goals and aspirations (18%); shows clients that they are interested in more than just their clients’ money (13%), and provides insights that help advisors better serve their clients (13%). Many advisors (75%) find discussing philanthropy with clients to be an excellent way to deepen relationships and establish new relationships (54%). Many HNW individuals (40%) agree that discussing philanthropy with an advisor has, in fact, deepened their relationship. More than half of advisors (56%) have also found that discussing philanthropy with clients has helped them build relationships with members of the client’s extended family – this proved most true among wealth/ financial advisors (64%).” THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
“Advising work, especially when focused on philanthropy, is inherently psychological – it involves clarifying deeply-held personal values, identifying causes that might have personal meaning, and dealing with the complex human realities of families. Shaping a philanthropic strategy requires attention to such psychological complexities. It also requires support for choosing appropriate philanthropic instruments; and for connecting donors with knowledge and skill about philanthropy, nonprofits and the community.” DONOR ADVISORS AND PHILANTHROPIC STRATEGY. Thomas E. Backer, PhD & Lilli Friedland, PhD. Human Interaction Research Institute
“However, the most trusted adviser of the future will define comprehensive management as something altogether different. Comprehensive will include accountability for overseeing every insurance professional of every kind; every money manager, whether or not you manage the assets; all of the CPAs and attorneys, any specialist in play at any given time; the wealth holder’s philanthropic adviser; and even his or her bankers. This management role will account for every facet of the wealth holder’s financial life, but won’t stop there. It will address the manner in which their life intersects with their wealth. How will adult children manage and preserve the family’s tangible and intangible assets? What mentorship is required? It will include documenting the wealth holder’s value systems and decision-making patterns and then sharing them with future generations.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page 58.
“Advisers go into planning thinking the client is looking for a solution. In reality, they’re not even sure what the problem is. They’re simply overwhelmed with symptoms, a particular point of pain they want exorcised from their lives. What they really need is clarity about what’s bugging them, what they want fixed, and why, so they can confidently select a solution. They need help figuring out the shape of the hole before they can even consider what kind of peg will offer a snug fit.” Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page 59
“Americans, by choice, tradition, and the workings of a tax system organized to promote citizen development and responsibility, give more money to favorite causes than any other people on earth. The encouragement of giving through public policy, the very size of the nonprofit sector, the sheer scale of giving, and the sophistication of their grantmaking processes continue to set American family philanthropy apart.” NCFP, “The Value of Family in Philanthropy“
“One-third of family foundations were created just in the past decade, and inflation-adjusted family foundation giving has more than doubled since 1998. In 2007, there were more than 37,000 family foundations. Together, they gave more than $18 billion in grants. By comparison, in 2002, there were more than 29,700 family foundations, which together had a total giving of $12.5 billion.” NCFP, “The Value of Family in Philanthropy“
“Private Foundation: the vehicle that allows the greatest personal control over the giving, the private foundation is often endowed either upon establishment or upon the death of the donor(s). Many foundations payout grants based on the earnings of the corpus, allowing lifelong, even perpetual, giving. Others choose to payout more as needs and program goals dictate. Family Foundation: is not a legal term but refers to a private foundation where the donor and relatives play an active role in the governance of the foundation.” NCFP, “The Value of Family in Philanthropy“
“Donor Advised Fund: is an extremely popular option for giving because donors can start and maintain them with fewer dollars (some hosts have no minimum; the average is $10,000-25,000). Donors give up some control (hence, the word “advised”) and attach their funds to a public charity and, therefore, receive greater tax advantages. The administrative or grantmaking support of the public charity is often an attractive advantage for donors. Community foundations host thousands of such funds, as do other public charities, financial institutions, and donor networks.” NCFP, “The Value of Family in Philanthropy
“Giving Circle: Donors with a shared giving interest or who want to give and learn together in a supportive community often join a giving circle. Such a circle requires a minimum contribution in exchange for the experience of shared decision-making and leveraging their dollars to greater advantage. Giving circles have sometimes been the vehicle for the venture philanthropy movement.” NCFP, “The Value of Family in Philanthropy
“Family Business Giving: Donor families often play their earliest philanthropic roles in the community by giving through their family business whether it is sponsoring a Little League team or making significant community grants. It is often this experience that prompts greater charitable involvement either as a complement to business giving or after the business is sold.” NCFP, “The Value of Family in Philanthropy
“Family philanthropy offers family the chance to feed itself – to develop leadership, to develop links across generations that mean something. There just aren’t that many places where you can add to the social interaction of the family relationship a piece of work. Work adds meaning and intensity to the family’s relationships that nothing else can – not being, not playing, not talking together. There is a wholly legitimate purpose to philanthropy as a source of meaning to a donor and a family. This is essential to the continued vitality of the American philanthropy experience.” NCFP, “The Value of Family in Philanthropy
“Participation in the grantmaking process offers families the distinct privilege of learning about needs and issues from those most impassioned and most involved – the community leaders they fund. They build nonprofit skills and experiences they likely would not have otherwise; among them, experience with volunteers, board and staff relationships, financial management, development, and evaluation. And, it has given them the chance to return those gifts to society – as more enlightened, engaged nonprofit volunteers.” NCFP, “The Value of Family in Philanthropy
“When it goes well in a family, there can be this discovery – an appreciation of other family members that can be really inspiring. I have talked to a lot of family members who are surprised and moved by the caring and the investment and commitment that other family members feel toward the foundation’s work. It is a real discovery of other family members. This can be especially true if other relationships are more of the business world or are more strained. When they see how caring they can be, it opens up a different way of looking at one’s relatives. And that can lead to a real positive feedback loop about doing more of this together.” NCFP, “The Value of Family in Philanthropy
“Family philanthropy has strengthened our family culture. It has added richness and experience to the family work. It becomes more than an activity; it is a life mission or calling.” NCFP, “The Value of Family in Philanthropy
“The successful multi-generational family philanthropy of the future is not one that passes the baton successfully but one that learns to share it – valuing the perspectives, the leadership, and participation of all.” NCFP, “The Value of Family in Philanthropy
“The financial resources of most philanthropic families mean children may have all the opportunities and experiences their parents dream of providing. Some of those opportunities – private schools, luxury vacations, elite extracurricular activities – may (intentionally or not) offer a narrow view of the world. Further, beyond the safe haven family and school provide, concern – even fear – for their safety may mean further shielding them from life’s harsher realities and dangers. Philanthropy introduces social needs and solutions in constructive, inspiring ways.” NCFP, “The Value of Family in Philanthropy
“Family foundations and funds often are safe places in which to make sense of the swirl of modern life. They usually begin with a nuclear family – a donor couple and their children. The manageable number and the intimacy of the family changes quickly as the second and certainly the third generation includes spouses, cousins, aunts and uncles, grandparents and a host of others – across generations and branches of the family. Depending on the donor’s goals for family involvement and perpetuity, participation may mean everyone is a potential trustee or advisor.” NCFP, “The Value of Family in Philanthropy
“Our family tradition of giving began before there was any wealth at all,” said one trustee. Said another: “The Depression remained a strong influence on my parents, and they knew what it was like to give when you weren’t sure you had enough for yourself. Why would we not give out of abundance?” NCFP, “The Value of Family in Philanthropy
“Families can be proactive in changing the world that is consistent with their values. Some can do this with politics; some can do it by being successful in business. The best opportunity offered by family philanthropy is the chance for the family to engage in the work of improving the community and the world in which they live.” NCFP, “The Value of Family in Philanthropy
“The freedom philanthropic families often demonstrate – to act quickly when needed, to act on convictions and to act on new knowledge – can be one of its greatest strengths and gifts.” NCFP, “The Value of Family in Philanthropy
“There is a misperception that family boards think and act in unison; that they have the same politics, religions, interests, and perspectives. That has never been my experience. If I were to found a nonprofit, I would surround myself with people well familiar with and equally committed to my cause. Family boards don’t have that commonality of background and purpose. You get what you get with your family and you learn to accommodate, agitate, all the while working toward consensus and, ultimately, a functioning team.” NCFP, “The Value of Family in Philanthropy
“Legacy is a powerful tool that plays out in family giving. Where Mom and Dad have been driving the philanthropic activities, they look to their children when it comes to how that legacy will be continued. In the end, we all want to believe that our lives have mattered, and we will leave behind a footprint. And why not leave our legacy in the hands of those who knew and loved us the most – our family?” NCFP, “The Value of Family in Philanthropy
“The choice to involve one’s family in philanthropy is grounded in legacy.” NCFP, “The Value of Family in Philanthropy
“There is something meaningful to the recipient communities that this is a family philanthropy – something very resonant with the people who receive the benefits of the philanthropy. It is like a family’s loving arms embracing a larger group of people. You can’t underestimate the love part of the family philanthropy. It’s the best part.” NCFP, “The Value of Family in Philanthropy
“A board of family members adds richness to the discussion and it can get spicy at times.” NCFP, “The Value of Family in Philanthropy
“Opportunities and threats all key on the family dynamics. If you can’t leave the baggage t the door, if you can’t come together as a unanimous board of a public trust, it can be a threat to the foundation. But there is enormous opportunity in the very diverse religious and political views family members bring to the table.” NCFP, “The Value of Family in Philanthropy
“I have been a long advocate of “you don’t have to be rich to be a philanthropist.” But I have come to believe you do have to be rich, but not in the way it is conventionally understood.” NCFP, The Value of Family in Philanthropy
“The free market system – capitalism – on which our country’s economy is based includes the promise of making oneself into something more – including wealth creation. The flip side of this is philanthropy. A free market allows both and philanthropy is a natural extension of our generous nature – creating something more than we were.” NCFP, The Value of Family in Philanthropy
“In a study sponsored by The Philanthropic Collaborative, economists Robert Shapiro and Aparna Mathur concluded: “Each dollar that private and community foundations provided in grants and support in 2007 produced an estimated average return of $8.58 in direct, economic welfare benefits. As a result, the $42.9 billion in grants and other support provided by private and community foundations in 2007 produced some $367.9 billion in direct, social and economic benefits.” Robert J. Shapiro and Aparna Mathur, The Social and Economic Value of Private and Community Foundations (Washington, DC: Sonecon, 2008), p. 2. Available online: http://www.philanthropycollaborative.org/FoundationStudy.pdf.
“One of the great lessons of the 19th and 20th centuries was the recognition of this big space that exists between what is the public sector (government) and what is the private sector (business), and led to the development of our nonprofit sector. It is not a luxury, it is a necessity. It is essential to the healthy balance of society. And, if it withers, the quality of society degrades in a democracy…We don’t yet have a rational way of funding this vitally important sector of society. That is the challenge that philanthropy needs to face up to in the United States and globally in the 21st century.” —Richard Rockefeller, Chairman, Rockefeller Brothers Fund at the Opening Session of the Value of Family Philanthropy National Symposium
“It was a surprise to me when I found out that not every family in the country had the same way of looking at the world, which is that if you’ve got stuff, you’re absolutely obliged to give it back, and why wouldn’t you? It wasn’t called philanthropy. It was just what my father, my role model, my uncles and aunts and cousins, who were older than me, were always engaged in. That’s where I first became aware of philanthropy.” – Richard Rockefeller
“Keeping a money diary, identifying “money heroes,” or creating a priority ranking of “belief statements” about money can provide valuable insights. Your understanding of how philanthropy fits into your money values will determine the way you shape your children’s philanthropic values.” Remmer, “Raising Children with Philanthropic Values“
“One of the pitfalls of wealth is that children may live in an isolated world of socioeconomic homogeneity and may not be exposed regularly to the “have not” segment of society. Our culture is replete with subtle and not-so-subtle messages about the “failures of the poor.” Sometimes our American spirit of individual achievement and competition can be understood to mean that everyone gets a fair chance. Parents can debunk these stereotypes and take proactive steps to broaden their children’s horizons. Encourage your child to join after-school activities with diverse groups of kids. Get involved as a family in community service projects. Use travel together as an opportunity to “unshelter” your children.” Remmer, “Raising Children with Philanthropic Values“
“Philanthropy is often defined as an effort to improve society, based on love of humankind. While philanthropy usually includes money, it is most meaningful when it comes from the heart and includes the contribution of time and talents” Remmer, “Raising Children with Philanthropic Values“
“Invite your children to participate in your charitable giving by creating an informal “family fund.” Encourage children to nominate their favorite charities or causes and then hold an annual family meeting to discuss their ideas. When the children are younger, it may be helpful to offer specific ideas, such as buying toys for hospitalized children or supporting baby animals at the local zoo. As they mature, you can show children how to research and evaluate their proposed charities for presentation at the family meeting. The Internet is a wonderful tool for the preliminary research, although nothing replaces the heartfelt experience of visiting organizations and seeing them in action.” Remmer, “Raising Children with Philanthropic Values“
“THE PHILANTHROPIC LEARNING CURVE: 1. You become a donor 2. You decide to get organized 3. You become a learner 4. You become issue and results oriented 5. Your philanthropy is leveraged 6. Alignment of vision, passion, interests, philanthropy is among the most exciting and satisfying things you do” From H. Peter Karoff, “Reflections on Two Decades of The Poetry and Practice of Philanthropy,” given to Advisors in Philanthropy, 2012
“Philanthropy is about getting results for others, and about care and concern, but it is also an expression of identity in community with others, and our identity is formed and expresses itself over time – we live many lives from infancy to death.” IDENTITY AND THE ADULT LIFE CYCLE IN LEGACY PLANNING. Assignment 7 of the CAP Designation. Phil Cubeta, CLU®, ChFC®, MSFS, CAP® Sallie B. and William B. Wallace Chair in Philanthropy The American College for Financial Services
“Social entrepreneurs are the actors who do the work, social enterprises are the organizational forms that are used, social innovation is the theory of change that guides the process, and social impact is the end result that is achieved.” Dr. Peter Frumkin Directs the Center for High Impact Philanthropy and oversee the Masters in Nonprofit Leadership program at University of Pennsylvania.
Life Transition Options: a. “Keep on doing what I already do well, but change the environment. b. Change the work, but stay in the same environment. c. Turn an avocation into a new career. d. Double-track (or even triple-track) in parallel careers (not hobbies). e. Keep on doing what I am doing even past retirement age.” Peter Drucker, Halftime
“Today’s retirees aren’t retiring — they’re moving on to explore new options, pursue old dreams and live life to the fullest. They’re seeing the longevity bonus as a chance to devote energy to pursuits they may not have had the time or freedom to chase during the “career” portion of their lives, to stay stimulated, and to strengthen and expand their social network.”—Merrill Lynch 2013 Retirement Study with Age Wave
“The primary test for both the poetry and the practice of philanthropy is integrity – was our purpose noble, were we true to it, and did we in all instances, deeply listen to the community of interest we presume to serve.” Founder of The Philanthropic Initiative
“The focus of financial wealth preservation, it turns out, is not really financial.” Wealth in Families Third Edition (Charles W. Collier) Page 6
“I argue that religion or spirituality encourages philanthropy by explicitly linking givers to the concerns and needs of others,” says Schervish in his essay, “Wealth and the Spiritual Secret of Money.” “My analysis follows a three-step logic: (1) if wealth affords individuals the ability to have what they want (at least in the material realm), and (2) if philanthropy can be understood as the transformation of time and money from a pool of wealth into a disposable gift to other, (3) religion– as it takes form in what I call the spirituality of money-motivates or spurs philanthropy, in amount and type, by shaping the quality of wants or desires among the wealthy. If the wealthy generally can have what they want, it is the realm of spirituality that directs their wants into a bond of care for others.” Wealth in Families Third Edition (Charles W. Collier) Page 13
“The wealthy move beyond pursuing private interest as their public contribution to pursuing public needs as their personal concern. Those who do so may be described as having learned the spiritual secret of money. The scope of their self-interest increasingly broadens and deepens to include a greater diversity of people and needs.” Wealth in Families Third Edition (Charles W. Collier) Page 17
“Financial wealth is a tool to achieve greater ends, for individuals and for society. Thus, philanthropy has a dual purpose. First, it is a vehicle for expressing core values-for individuals and for families. Typically, these values might include educational opportunity, advancement of knowledge, artistic freedom, alleviation of suffering, eradication of disease, or environmental preservation. Second, philanthropy is the tangible expression of care for others outside one’s immediate family.” Wealth in Families Third Edition (Charles W. Collier) Page 17
“Schervish defines philanthropy as the social relation of care in which individuals expand the horizons of their self-interest to include meeting the needs of others.” Wealth in Families Third Edition (Charles W. Collier) Page 17
“What would be best for your children? What do you hope they will accomplish with the money? Making a considered and deliberate decision is wise because, if you don’t, you’ve actually made a decision. You have picked the default position; that is, all to my children, less a significant percentage to the government. Spending time on inheritance planning may allow you to transfer the amount you eventually have in mind to your children while making gifts to charity, rather than to the government through taxes. The choices are not your children to taxes, but your children and charity and no taxes.” Wealth in Families Third Edition (Charles W. Collier) Page 26