How to engage in effective philanthropy - 4-28-2012

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What do the best philanthropists in the world do?

This presentation was given by Dr. Nora Silver, Director and Adjust Professor at the Center for Nonprofit and Public Leadership, Berkeley-Haas and Nicholas Hodges of the San Francisco Foundation.

Discover the different avenues to invest for a social impact and work through your possible giving philosophy.

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  • Philanthropy has roughly been 2% of GDP for the last 40 yearsIt is also driven by individuals, not from foundations or corporationsOnline giving is growing substantially, but is still a fraction of the individual givingTexting donations raised $5 million for Haiti earthquake relief, but donations were not immediate
  • Support the same organizations annualWant to Give Back to the CommunityThey want to make a differenceBecause they are asked (#7 used to be #1)They care about the mission of the organization
  • Solicited too frequently (58.9%)Decided to support another cause (35%)Financial Circumstances Changed (34%)Felt their donation was not making a difference (27%)
  • With all of the vehicles, you gain the ability to take the tax deduction now and grant the money to non-profits laterWhile this may sound unfair, it allows you in theory to be more thoughtful about where you give it vs. making a snap decision at the end of the yearThe main choice is between simplicity and complexity. The more complex the solution, the greater freedom you have to direct the givingWith complexity comes expense and administration. Important to know the trade offsFor most people, 100% of what could give in any given year is donated immediatelyAs income/wealth rises, you have the ability to endow funds – build a larger pool that could be granted out during, and after your lifetime
  • 3% = $15.77 billion vs. $275.12 billionGovernment Aid: 8.47% directed at international aid, development and reliefTotal international economic assistance $33.9 billion vs. $400 billion domestic assistance(2008)1Source1U.S. Overseas Loans and Grants (Greenbook), "Program and Account Reports". Accessed August 24, 2011;2006 Catalog of Federal Domestic Assistance (CFDA) of the United States General Services Administration;Rise in intrl giving: increasing awareness and interest in global matters resulting from various political and humanitarian crises (Jan 10 earthquake in Haiti) affairs—the largest percentage increase of any subsector in 2010 follows 2.9% increase in 2009Compare $300 billion in phil with govt in world aid: phil tries to make up the difference+15% - online giving and ease such as KIVA
  • Full Circle FundWomen’s Foundation : women and girlsGlobal Fund for WomenSPARKAPIP – set up giving circles all over country – bringing API together to give Horizons Foundation – marriage giving circle
  • The big advantage to the donor/lender is that capital is recycled Very appealing to donor/lender because it targets small business and encourages entrepreneurshipHas strengthened the voice of women in villages as 97% of the loans go to womenThe downside is micro-loans cannot replace grants. These loans create jobs, but don’t build infrastructure or fund social servicesThe loans cost 25-30% to the end borrower, but usually come with financial/business support from the MFIAs for profit companies see opportunity, more capital may be available but will focus remain on societal benefit?
  • You can start this here and want to give you time to think and if you have questions, we can come around – or share with another. Take time with. Jot some big ideas down that help you get started. Don’t forget that philanthropy includes volunteerism 10 minutes will not give this justice; just trying to get you started Next page-places to researchQUESTION: THIRD LIFE? – SIGN UP SHEET
  • Nick – talk about orgs and what they do
  • How to engage in effective philanthropy - 4-28-2012

    1. 1. What Do The BestPhilanthropists in theWorld Do?Nora Silver, Haas School of BusinessNick Hodges, San Francisco Foundationsilver@haas.berkeley.edu
    2. 2. What inspires you to give?Who inspires you in their giving?
    3. 3. The Charitable LandscapeSource: Giving USA, 2010
    4. 4. Why Do People Give?
    5. 5. What Are the Barriers to Giving?
    6. 6. HNW Household Confidence in Who Can Solve Domestic or Global Problems
    7. 7. Report Out on What Inspires Us
    8. 8. Comparing Charitable Vehicles
    9. 9. Donor Advised Funds: Local/International 3% of total giving goes to international aid, development, relief and policy analysis +15.3% rise in giving to international affairs 65% of all giving is local Source: Giving USA, 2010
    10. 10. Giving Circles Pooled moneyCommon portfolio Involvement Peer-to-peer learning
    11. 11. General public funding priorities General Public Religion, Health & Human 11% Services, Education top funding 3% priorities for General Public 2% 33% 4%8% 10% 16% 13% Religion Charitable Vehicles Environment Health & Human Services Social Services International Education Arts Other 11 Source: Giving USA 2010 and The 2008 Study of High Net Worth Philanthropy, Bank of America and University of Indiana
    12. 12. Micro-Lending / Impact Investing Incubated by Muhammad Yunus in 1976 in Bangladesh and then becoming the Grameen Bank Popularized and democratized by Kiva in 2005 Strong push for foundations (particularly public) to tie investments to mission (Mission-Related Investing) Source: Giving USA, 2010
    13. 13. My Personal Philanthropy WorksheetWhat I am passionateaboutBarriers I anticipateEstimated range of givingTools I want to considerNext steps to take mefrom planning to action
    14. 14. Resources for GivingCharity Navigator www.charitynavigator.orgFidelity Charitable Gift Fund charitablegift.orgFull Circle Fund fullcirclefund.orgGreat Non-Profits greatnonprofits.orgGuidestar guidestar.orgKiva kiva.orgRockefeller Philanthropy Advisors rockpa.orgThe San Francisco Foundation sff.orgSchwab Charitable Fund schwabcharitable.orgTides Foundation tides.orgThe Women’s Foundation womensfoundca.org
    15. 15. Berkeley-Haas Resources• For more resources related to philanthropy and the social sector, visit us online: – Facebook: http://on.fb.me/cnpl-fb – LinkedIn: http://linkd.in/Haas-SocialImpact• For alumni resources from our Center: – Alumni Page: http://bit.ly/socialimpact-alumni

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