Posts Tagged ‘philanthropy’

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Why are charities blowing donations on black-tie balls?

Wednesday, August 3rd, 2011

Spend money to make money? It might seem like an oxymoron, but in reality it’s a great fundraising tool for charities to use. Large, extravagant events can benefit nonprofits in a couple of ways.

Everyone likes a party, so why not make some money off of it? That’s part of the mentality that black-tie benefit balls depend on. These events usually charge a ticket price for each person who wishes to attend. While the party may cost the charity $50 per attendee, tickets for entry might cost $250 or more – an easy net gain of $200 per person. Multiply that $200 by a thousand people and you’ve raised $200,000 before anyone even walks through the door. Once inside, a charity might hold an auction or have other mini-events that would contribute even more to their total funds raised.

Besides the monetary benefits, black-tie balls often attract celebrities and other influential people who can raise awareness about the charity. These events are also a great way for a charity to give back to its donors – to thank them for their contributions and (hopefully) continued support. By spending a little money on entertaining their donors, charities are the ones with money in their pockets at the end of the night.

Bill Gates Learns to Give… Better

Tuesday, August 2nd, 2011

bill-gates-thinker.jpg
(photo credit: Steve Jurvetson)

Or, maybe, “Bill Gates learns to give to learn to teach so kids can learn?” Or something like that…

What we’re getting at here is that the Bill and Melinda Gates Foundation, by far the biggest charitable foundation in the world, has given away billions of dollars total, and hundreds of millions to education, however, they’ve had little measurable impact in the last ten years on the one thing they were really trying to change – how many kids from disadvantaged neighborhoods are going to college.

Luckily, the last 10 years in schools have taught Bill Gates something – that he needs to learn more! Taking an idea from the private sector and applying it to education, the Gates Foundation thinks that a little R&D is exactly what the educational system needs to come up with innovative solutions to its big problems. And that’s where he’s going to put his money now.

It turns out that the business world and non-profit world aren’t so different. A lot of what we do spending and growing our money has real impact on society and the environment, and things we do in one are of our financial lives can apply to other areas in new and cool ways.

It’s not always just about giving more, but about learning to give better.

A Foundation is…

Tuesday, August 2nd, 2011

A foundation is a nonprofit organization created with the express purpose to give away money to individuals or charitable organizations.

American Philanthropy

Tuesday, May 31st, 2011

Welcome to American Philanthropy! The charity scene has changed quite a bit in the past 100 years – from the elite ranks of oil barons to the democracy of text donations. Learning a little about the history of philanthropy in the U.S. will help you understand the present and future  – and make you a smarter philanthropist.

$74 Billion Still Buys an Awful Lot…

Thursday, March 24th, 2011


(photo credit: clagnut)

Carlos Slim (is that really his real name? Googling… his real name is Carlos Slim Helú, which is still kind of funny) is officially the richest man in the world, with a net worth of $74 billion.

That’s more than 6% of Mexico’s entire GDP!

But being the world’s richest man in a country as poor as Mexico isn’t easy on your rep. Unlike Bill Gates and Warren Buffet, America’s wealthiest citizens, Slim hasn’t really focused on philanthropy.

Which led Cyntia Barrera Diaz from Reuters to ask, “What could you pay for with that kind of scratch?”

Here are some gems from the list she came up with:

  • - Enough tortillas for all 112 million Mexican citizens for 11 years
  • - NASA’s total budget for the next four years
  • - Mexico’s entire public education budget for ten years
  • - 1,617 25-carat pink diamonds

What does Carlos think about giving away his money?

“Wealth is like an orchard. You have to share the fruit, not the trees.”

What would YOU do with $74 billion?

Smart Philanthropy in the Wake of a Disaster

Wednesday, March 16th, 2011


(photo credit: Kei!)

When something really bad happens in the world, we all feel hurt. And helping each other out is one of the best ways to alleviate that pain. But that common sense advice about not shopping when you’re hungry and not investing when you’re anxious also applies to giving.

Saundra Schimmelpfennig at the Chronicle of Philanthropy shared some advice on how to give smart in an urgent time of need. She encourages “disaster philanthropists” to think carefully before pledging their money to an emotionally compelling cause.

Here are some of her points that we think are especially important:

  • Make sure the organization you’re donating to actually has permission to operate in the affected area. (This is a no-brainer, but some governments refuse or limit access to foreign aid organizations.)
  • Consider giving to organizations that were operating successfully in-country before the disaster. They may have more resources and connections than many of the big-name international nonprofits.
  • Don’t be sucked in by projects that tug at your heartstrings. Sure, donating to an animal shelter seems like the natural thing to do after seeing this picture, but does directing your resources there really address the most critical needs on the ground?
  • Give aid organizations the freedom to choose what your donation pays for. They know better than you what the most important projects are.
  • Don’t forget about the disaster as soon as the news outlets do. Most of the expense and hard work happens after the initial emergency relief efforts end. Rebuilding houses, schools, communities, and lives can take years. Your donation will mean just as much in six months as it does today.

Ready to make an impact? Text a friend and ask them to donate with you. With two researchers on the job, you can probably find a perfect organization – and double your donation in the process!

Donors Funding Again, But Younger Donors Fund Different Causes

Friday, February 11th, 2011

old-couple.jpg
credit: keithusc

Under 50? Then you’re not likely to be donating to your alma mater in 2011.

  • The recession hit everyone hard – including nonprofits and foundations. A study by The Chronicle of Philanthropy shows that big donations were way down in 2010, due mostly to fears about a “double-dip” recession and confusion about tax laws.
  • But so far in 2011, the economy is looking more stable and the tax code has finally been clarified. This may be the long-awaited make-up year for nonprofits that rely on funding from philanthropists.
  • Importantly, the study also revealed generational changes in giving styles. None of the big donors who made the list under 50 years of age donated to colleges or universities. Instead, they preferred to fund education, medical, human rights, and social entrepreneurial ventures.

Facts & Figures

  • Of Forbes magazine’s top 400 wealthiest Americans, only 17 appeared in the Chronicle of Philanthropy’s list of the most generous 54 donors
  • 9 people on the list donated more that $100 million in 2010, compared with 18 donors in 2006
  • The top two donors on the list were 80-year-old hedge-fund manager George Soros ($332 million) and New York Mayor Michael Bloomberg ($279.2 million)
  • Mark Zuckerberg, the youngest donor to ever appear on the list, came in 10th place ($100 million)

Best Quote

“I can think of no less needy charity than Harvard. I have to struggle to think of anyone in my age group who has given big money to a traditional charity.” – Philanthropist Whitney Tilson on the new generation of philanthropy

What do you think?

Do you support the same causes as your parents? Do you give to the same organizations as your friends?


“Getting It” Before You Begin To Give It Away: Sharna Goldseker of 21/64

Thursday, February 10th, 2011

sharna-goldseker.jpg Sharna Goldseker is the director of 21/64 – a nonprofit that helps families make important decisions about philanthropy and helps young donors find their philanthropic voice. Sharna is an expert on the way giving fits into wealth and family relationships. In addition to consulting and speaking extensively on generational transitions, she also facilitates a network of seventy 18-28 year olds who are or will be involved in their family’s philanthropy, and she helped found Slingshot, a funding collaborative for Jewish funders in their 20s and 30s.

Works for us. Here she shares some really thoughtful advice about youth giving and the new philanthropy.

TILE: Why should young people consider getting involved in philanthropy 
in the first place? Isn’t that something that should be left to
 adults?
Sharna: Research shows that each generation brings a unique set of values, skills and experiences to the philanthropic table and therefore at any age, people can contribute to society and learn from one another in the process. For instance, Generation Y (pdf download) (people born between 1980-2000) have grown up with information technology, connected to people around the world, and in a more diverse society then generations before. While older generations may have more years of experience to bring to bear on their philanthropy, Gen Yers can bring their facility with technology to leverage their networks and communicate, advocate and contribute online. Their values of justice, compassion and acceptance of other people bring humanity to their philanthropy. And Gen Yers’ commitment to issues, as well as innovation, often on a global scale, would benefit many non-governmental organizations today. Besides, being a part affecting change that is larger than ourselves can add meaning to our lives.

TILE: What are the first steps that someone can take if they want to get involved?
Sharna: At 21/64, we have found that it’s often hard to think about what to fund or what organization to join before asking ourselves three questions:
What am I inheriting? Not financially, but what are the stories, values, messages my parents and grandparents have passed down to me?
Who am I? What of that family legacy do I want to incorporate into my life today? What are my own values? What are my passions? And then ask,
What do I want to do about it? How can I align my values and my resources to have an impact on the needs of the day? What are the issues that I see as important (e.g. bringing clean water to everyone; providing quality education; enriching people’s lives through art, etc.) that I care about and want to dedicate my time, energy and other resources to?

TILE: What advice would you give to young people who can’t decide where
 to focus their philanthropic efforts?
Sharna: It’s not uncommon for people to have trouble deciding where to start when there are so many important challenges to solve in the world. To help with this dilemma, we created Picture Your Legacy, a deck of colorful images from which users can choose those that most speak to the funders they aspire to be and the type of impact they want to have. While the cards include images of arts, the environment and other areas to support, Picture Your Legacy helps users articulate if they want to take risks and invest in social entrepreneurs or support established organizations; consider funding as an individual or in collaboration with others; and, it raises other components of being a thoughtful and strategic funder which are often hard to identify on your own.

TILE: Why do you do what you do? What do you like best about your job?
Sharna: As director of 21/64, a non-profit practice specializing in next generation and multigenerational strategic philanthropy, I get to work with my next generation peers to help them find their own philanthropic identity and move resources to affect change in society. I also consult with families and know how hard it can be to make philanthropic decisions across the generations, especially when funding colleagues are moms, dads, siblings or grandparents. If I can help a family navigate their generational differences and build a way to communicate, then I’m not only helping the family but also helping them be more effective funders.

TILE: What’s the best advice you would give to your teenage self?
Sharna: My great uncle had been in real estate in Maryland and left instructions in his Will for a foundation to be set up upon his death. As someone who grew up knowing there was a charitable foundation that shared her name, I always struggled with earning the right to this “philanthropic inheritance.” After years of serving as an intern at different non-profits and gaining a graduate degree in non-profit management, I came to realize I not only loved the work, but also had an opportunity to make a difference in the world through allocating philanthropic resources. While I didn’t initially earn the assets in the foundation, I can still bring my own values, experiences and skills to bear on the foundation as a member of the Board. Looking back, I would encourage my teenage self to take the time to develop my own identity, figure out who I am, and who I want to be in the world, as I’m now a better family member and foundation director because of it.

>> TILE brings you exclusive opinions, explanations, and interviews from experts in every industry. To read more, click on Ask the Experts in the TILE Library.

Have a burning question or an expert you’d like to see interviewed? Just Ask TILE!

The New Philanthropy: Google Goes After Education In India

Thursday, February 10th, 2011

“NEW DELHI – Internet giant Google Inc. said Monday it will give $5 million to upgrade and support 50 elementary schools run by India’s Bharti Foundation, the philanthropic unit of Bharti Enterprises Ltd.”

What do you think?

Can an enormous business-based philanthropic venture like Google fulfill its mission to save the world?

How To Mess Up Your Holiday Giving

Monday, December 20th, 2010

It’s holiday giving time! People who – oops – forgot to donate to charity all throughout 2010 are now scrambling to give away enough money to score some sweet tax breaks before the end of the year. But according to some lady at the Wall Street Journal, there are a lot of stupid things you can do when you engage in last-minute philanthropy.

gift-house-by-howard-dickins.jpg
credit: howard dickens

Let us count the things you should not do, according to Ms. Shelly Banjo:

1. Give impulsively. Newsflash: Charities are falling over themselves trying to get your attention. Good for them, but don’t be a philanthropic sucker. Think about what’s really most important to you, decide how much you want to donate, and engage in some thoughtful charity.

2. Donate stock you’ve held for less than a year. Did you know you can donate stock to some organizations? Did you also know that you can only get a tax deduction for doing it if you’ve owned the stock for more than a year? Now you know.

3. Donate stock that’s lost a lot of value. You can actually claim the money you lost on that stock as a tax deduction, which might lower the taxes you have to pay on the investments that did make you money. If you hold onto the stock and donate cash instead, you get double the deductions!

4. Think you can claim the cost of a fundraiser ticket as a charitable donation. Okay, actually you can do this. But you can only claim the cost above what the ticket is actually worth. (So if you bought $1,000 Knicks tickets to benefit a charity, but the tickets are actually worth $200, you only get to claim the $800 as a donation.)

5. Donate stuff (instead of money) to an organization that won’t use it. This is something only your accountant understands. Basically, the amount you can write off on stuff donations depends on the mission of the organization you’re donating it to.

6. Donate something called a “gift annuity” when interest rates are really low (i.e. right now). Gift annuities are basically donations to charities that earn you a little money on the side. The charity keeps the money you’ve given them, but they pay you interest every year on the amount you donated. So low interest rates mean your payments will also be low.

7. Obsessively stick to charity ratings. Rating sites like CharityNavigator.org and GuideStar.org are helpful when it comes to sorting through the jillions of charities out there. But they can basically only give you numbers. (And numbers liiiiie!) It’s up to you to get the full picture before you shell out for a particular organization.

8. Give to a charity that rents or sells your personal information. (duh)

9. Donate to the wrong donor-advised fund. Donor-advised funds are a complicated way of pooling your money with other investors so that you all save big on taxes while your money or investments go to organizations you all believe in. You don’t have much control over where the money goes after you put it in the fund, so make sure you’re a believer before you join a specific donor-advised fund.

10. Don’t get insurance if you’re on the board of an organization. Congratulations! You’re on the board of an organization. Now you’re partially responsible if that organization does something stupid. Directors and officers insurance exist for a reason.

Now that you’re paying attention, here’s a picture of two Christmas cats hugging to get you in the philanthropic mood:

christmas-hugs-by-tuija2005.jpg
credit: tuija2005

Aww.

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