Katie, Author at Friends In Philanthropy

September 2022

Friends in Philanthropy: September 2022 Issue

“That’s probably the period of time where Melinda and I will be around to help make sure it stays on track.”
– Bill Gates on the informal plan to spend down the Gates Foundation’s endowment in the next 25 years

In our July issue, we noted that more foundations were pursuing a “time-limited” approach to their own existence. Now you can add the country’s largest charitable foundation to the list.

Speaking at the Forbes 400 Philanthropy Summit, Bill Gates revealed that he and ex-wife Melinda French Gates had discussed winding down the Gates Foundation over the next 25 years.

Of course, in a sense “winding down” also means “ramping up.” In order to spend down its endowment, the foundation plans to increase its giving, from $6 billion annually now to $9 billion by 2026.

The Gates Foundation is just the most prominent example of a larger trend in the industry, as philanthropies big and small become more thoughtful about how their structures and processes influence the outcomes they deliver. Read on for more insights you can incorporate to make your own giving more strategic.

Bill Gates Sees the Gates Foundation Winding Down in 25 Years (Geekwire) – Time-bound giving got a big boost when Gates said his foundation would likely spend down its endowment in the coming decades. The goal in the meantime? Bring infectious disease “largely to an end.”

A QCD Can Lower Your Tax Bill Even If You Take the Standard Deduction (Kiplinger) – A qualified charitable distribution (QCD) from your IRA can benefit both you and your chosen cause in several ways. Here’s what your savings could look like, plus some rules you’ll need to follow.

What Foundation Trustees Need to Know To Keep Out of Trouble (Philanthropy Roundtable) – Rental payments, credit cards, staff sharing arrangements—here are some common “self-dealing” pitfalls trustees fall into, often by innocent mistake.

Someone pulling money out of their wallet

Nearly 6 in 10 Donors May Increase Giving Despite Economic Fears (CNBC) – Large majorities of Americans say they’re worried about the health of their communities. So 2022 might turn out to be a robust year for giving, whatever the economy brings.

The Messy Newman’s Own Estate Fight Has Lessons for Foundations (Wealth Management) – The late actor’s daughters are suing for more control over his foundation’s spending. A lack of written documents made the situation “ripe for conflict.”

Photos courtesy of Unsplash.

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July 2022

Friends in Philanthropy: July 2022 Issue

“What if we set a deadline to give away our whole endowment?” If you asked that question at a foundation in the 1980s, you’d have gotten a lot of funny looks.

Not anymore. In the last 10 years, 38% of new philanthropies chose time-limited models to guide their giving, according to Rockefeller Philanthropy Advisors.

Why? For some founders, it’s to enjoy the satisfaction of “giving while living.” For others, it’s to break the gridlock that can result from guarding the endowment at all costs.

To be sure, time-limited grantmaking has its own drawbacks, and the vast majority of foundations are still designed to continue in perpetuity. But the dramatic rise of a whole new model is proof that in philanthropy, conventional wisdom is ripe for challenging.

Read on for inspiration that can reshape your own thinking, too.

Don’t Stop Giving To Charity During Rocky Markets. Just Give Smarter. (Forbes) – Need doesn’t pause during downturns—it rises. Here’s how to use non-cash assets and Roth conversions to keep giving, and rebalance your portfolio in the process.

5 Things You Have That Charity Leaders Need As Much As Money (National Christian Foundation) – Grants are great, but so is expertise. Don’t underestimate the good you can do for a charity just by giving advice.

More Foundations Are Speeding Up Their Giving (Barron’s) – In the ’80s, setting a timeline to spend down your endowment was unheard of. But in the last decade, 38% of new philanthropies choose time limits. What’s going on? (You can also read the full report here.)

How Putin’s War Is Threatening a Miracle Food Relied On By Millions (Christian Science Monitor) – The enriched peanut paste known as Plumpy’nut is one of the best tools UNICEF has to fight hunger. But disruptions in Ukraine are making it impossible to keep the supply flowing, and there’s no relief in sight.

A corporate meeting with individuals on their laptops

4 Tips for Bringing Philanthropy-as-a-Service (PhaaS) to Your Company (TechReport) – Platforms like Groundswell are making it easier than ever to involve employees in corporate philanthropy. Find out how and why to hop aboard the trend.

Photos courtesy of Unsplash.

June 2022

Friends in Philanthropy: June 2022 Issue

What will corporate giving look like in 10 years? If survey results are any indication, nothing like today.

That’s the conclusion the “corporate purpose” tech company Benevity reached after studying shifting attitudes among customers, employees, and investors.

Essentially they found that all these stakeholders want to be involved in how the company creates value for the world beyond the bottom line. And they generally have strong feelings about what that looks like.

Ultimately Benevity believes the conclusion is as simple as it is profound: “Purpose leads to more loyal customers, more engaged people—and a stronger bottom line.”

Read on for more stories and insights that can inspire you to build that future, whatever you do.

‘Stakeholder Philanthropy’ Is the Future of Corporate Giving (Benevity) – Surveys make it clear: customers and employees want a say in how companies give. Here are the 7 elements of a modern corporate philanthropy program.

Barrie Wells Would Rather Not Die Rich (Financial Times) – The 82-year-old British entrepreneur says it’s simple: why let your money sit in a bank when you can use it for good—like helping sick children play sports?

Why Cognitive Dissonance Is Key To Effective Philanthropy (Worth) – Optimistic and realistic. Patient and ferocious. Two nonprofit consultants say the best philanthropists learn to think in contradictions.

How One Woman Is Helping People With Disabilities Evacuate Ukraine (UNHCR) – When war broke out in her home country, Tetiana Barantsova escaped in a wheelchair. Now, from her new home in Latvia, she’s helping others do the same.

A blue arrow pointing up and a red arrow pointing down

Giving USA 2022: There’s Good News, and There’s Inflation News (ABC News) – The major annual report found U.S. charitable giving hit another all-time high in 2021—and it still lost ground to inflation.

Photos courtesy of Unsplash.

May 2022

Friends in Philanthropy: May 2022 Issue

Do philanthropists only make major donations so they can take tax write-offs? The general public might suspect that’s the case, but the numbers tell a different story.

When BNY Mellon polled 200 high-net-worth individuals about why they give, tax planning ranked far below other considerations.

Source: BNY Mellon Wealth Management Charitable Giving Study 2022

Granted, these answers are self-reported, so you might think respondents are downplaying their self-interested reasons for giving. But according to financial planner Juan Ros, these results track with what he hears from his own clients.

“Taxes are a nice side benefit, and sometimes taxes can be the catalyst for a larger discussion of charitable goals, but taxes are not a primary reason why people give,” Ros told CNBC.

The stories in this month’s issue speak to those higher priorities: the impact your generosity can make on a grateful stranger’s life, and the legacy you create when you do.

How an Alliance of Givers Is Fighting Human Trafficking In Florida (National Christian Foundation) – A retired energy executive details the steps he took to launch an “impact alliance” to help nonprofits and other experts collaborate on projects they couldn’t tackle alone.

Here’s What ‘Trust-Based Philanthropy’ Actually Means (The Conversation) – Can funders help more by participating less? Catch up on the concept of “trust-based philanthropy,” which has been picking up steam in recent years.

How Two Sisters Found the Woman Whose Kindness Changed Their Lives (CNN) – In 1999 a stranger on a plane gave them $100 as they fled the former Yugoslavia. Now thanks to a wide-ranging internet campaign, they finally get to thank her.

Make Philanthropy Part of Your Workplace Culture (Newsweek) – A CEO argues that when businesses make philanthropy “an everyday event,” it benefits everyone—companies, employees, and charities alike.

Tax Breaks Aren’t The Main Reason Wealthy People Give (CNBC) – A new study confirms what financial planners already know: major givers see tax breaks as a mere side benefit. Impact matters more, especially for younger donors.

Photos courtesy of Unsplash.

April 2022

Friends in Philanthropy: April 2022 Issue

There are many reasons you might want to start a family foundation, from establishing a lasting family legacy to giving back after a successful career. But one reason that sometimes goes overlooked is the chance it gives you to educate your family’s younger generations.

By involving children and young adults in your foundation, you can teach them about leadership, generosity, and even financial management. Here’s a look at how family foundations draw in their successors.

If you’re intrigued by the idea of starting a family foundation, you definitely don’t want to miss the first link below. There we take a much closer look at the signs a family foundation might be right for you. We also cover some potential alternatives, and some next steps you can take if you want to know more.

Click below to read the full guide!

7 Signs You’re Ready for a Family Foundation (and 4 You’re Not) (Friends in Philanthropy) – Read our new guide to see whether your goals and circumstances point toward starting a family foundation—and what your other options are if not.

A 40-Year High in Inflation Is Eating Away at Charities (Philanthropy Roundtable) – Soaring prices are causing need to skyrocket at food pantries and shelters. But they’re also forcing cutbacks in service.

He Won a €200M Lottery. Now He’s Giving It Away Anonymously. (Euronews) – A retiree in the south of France says he’d rather “protect the living” than buy sports cars. Here’s what we know about the mysterious figure’s new environmental foundation.

3 Philanthropy Trends We Learned From Fidelity’s 2022 Giving Report (Forbes) – Giving is surging, even as donors get more sophisticated about their strategy. Here’s what Fidelity Charitable found by analyzing 175,000 giving accounts.

Philanthropy Doesn’t Work Without Faith-Based Organizations (Philanthropy Roundtable) – Faith-based organizations represent the largest subsector of giving and some of the most active volunteer forces. So how do we keep them healthy?

Photos courtesy of Unsplash.