The X-Factor: Women, Wealth and Strategic Philanthropy
Passing the buck
1. Passing the Buck: The Social
Capital Legacy Conversation
Philanthropy and the
Next Generation
2. How much???
Leave enough for your
children that they will do
something, but not so much
that they won’t do anything.
- Warren Buffet
“It’s not your pearls, it’s your
pearls of wisdom.”
- Karen Roth
Warren Buffett, Melinda & Bill Gates
3.
4. Discussion
• What is philanthropy?
– Allocating your Social Capital
• What is social change?
• Measuring social change
• Making it real
– Creating a charitable giving plan
– Handouts
6. Definitions
Social Investing Shared Value
Social Return on Collective Impact
Investing
Social Innovation
Social
Entrepreneurship Social Good
Social Finance
/Social Capital
7. Definitions
Social Good: A good or service that benefits the largest number
of people in the largest possible way.
Source: www.globaltrends.com
Social Innovation: A novel solution to a social problem that is
more effective, efficient, sustainable, or just than current
existing solutions, and for which the value created accrues
primarily to society as a whole rather than private individuals.
Source: www.ssireview.org
8. Definitions
Social Return on Investment (SROI): A framework for
measuring and accounting for the social, economic and
environmental value that results from our activities, using
monetary values to represent them.
Source: www.thesroinetwork.org
Social Investment: The term ‘social investment’ is often used to
describe an investment in social or environmental outcomes
combined with financial returns for the investor.
11. Social Capital:
Resourcing Social Change
Why we do... How we do it...
• Front-line Charity
• Personal/Family Social • Annual Giving
Vision • Special Events
• Private Foundation
What we do...
• Public Foundation
• Volunteering Time • Charitable Trust
• Donating In-Kind • Donor Advised Fund
• Chequebook Charity • Giving Circle
• Engaged Philanthropy • Crowdfunding
• Micro-Loans
• Strategic Philanthropy
• “Groans”
• Leaving a Legacy • Social Impact Investing
12. Hierarchy of Values
The stronger the causal alignment
the larger your investment of time, intellectual capital and financial
support
16. “Heading for a
Revolution...”
Industrial Revolution Information Revolution
• Improved productivity • Improved productivity
Assembly Line Social networks to
• Technology Steam leverage operational
power, shipping systems objectives (crowd-
• Raw materials sourcing)
Resource extraction • Technology Internet
• Infrastructure • Raw materials Ideas
Government Policies • Infrastructure
Government Policies, co-
work space, social
networks
18. Creating a
Giving Plan
1. Identify areas of giving are most important
2. Audit past giving
3. Create a portfolio of responsible, well managed
charities that will deliver impact
4. Establish a disbursement program that balances your
donor interests (i.e. tax benefit) with charity need and
timeline
5. Ongoing communication with organization
Accountability
19. What to look for?
• Leadership
– Qualifications
– History & Connectedness
– Board engagement
• Corporate Structure
– Strategic v. Operational Board
– Policies to protect donors and clients
– D&O Insurance
• Program Implementation - Success rates
– Capacity to report on long term effectiveness
– What is success?
• Financial Management- Solution to Social
Problem
– Fundraising
– Overhead Operational Effectiveness
• Competitive Analysis
20. Questions to Ask
BEFORE Donating
1. How long has the organization been in
operations?
a. How long has the Executive Director been in the
role?
b. Are the client testimonials/partner reports to share?
c. Is there a “road map” for the organization – business
plan for delivering on its mandate?
2. Board Governance
a. Same people on the board, or is there a mechanism
for succession planning and new idea generation?
b. Is the board a strategic board or an operational
board?
21. Questions to Ask
BEFORE Donating
3. What are the donation management terms?
Are they part of the board monitoring
activities?
a. How will your donation be managed and
stewarded? Who will be your “contact”?
4. What is the operating budget? What is the
program delivery budget?
5. Has the organization adopted the code of
Ethical Fundraising and the Donor Bill of
Rights?
There is a Native American saying, “We do not own the earth, we have borrowed it from our children.” Using this as the foundation, a strategic philanthropist will become an investor in community.What does a social vision mean?ValuesWhere I want to see societyThings that I believe in
What motivates you to give to the charities that you give to?Refer to charities that have been highlighted in conversationTop five reasons why people give to charity.What are some other reasons that you make charitable donations?Want to see changeKnow that the organization can deliverBecause people need the support that I can provideIncreases awareness about an issue that I care aboutGood for business
Read off example questions.Have people do worksheets
The beginning stages of a revolution:To quote iGenTribe.com - “Skills have been replaced by knowledge. Attitude has replaced experience. Leadership has replaced management.”For a revolution to occur there needs to be: - Improved productivity - Technology - Raw Materials - InfrastructureThe current revolution sees the internet technology is improving productivity by generating more virtual people power. The raw materials are ideas, and the infrastructure is both the public policies and the use of the basic technology. What is resulting is a new definition of community.Just look at Facebook or Google +. In Facebook, you have friends and fans. You can unfriend a friend and unlike an organization just by clicking a button. Or in Google you can create online cliques of friends by cataloguing and categorizing as you see fit.This shift in how we define community is also changing how we raise funds. Technology is allowing us to crowdsource financing either through donations, micro-loans, micro-donations, crowdfunding projects and raising start-up capital for new ventures. Technology is allowing us to move back to a village capital model where all ships rise on the collective success. This is the new economy and one that is going to shape the way that charities raise funds for the next three generations.
