Navigating trends in family philanthropy

10/2/2017, 9:30am
Navigating Trends in Family Philanthropy
Tony Macklin
1
Oct. 2, 2017
Tony Macklin, CAP®
@familygiving
#NCFPCF
@CF_Conference
Copyright © 2017. A portion of this material is excerpted from NCFP publications and research
reports. These slides should not be copied or distributed without prior permission of NCFP.
I. Macro Trends
II. Case Study
III.Building Resilience

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Connection to
family members,
family legacy
Philanthropic
giving and/or
social impact

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Generational mobility
Income, asset, race gaps
Political polarization
Opting out
Suspicion of endowed wealth
80% of older foundations (pre-1970) have a
geographic-based mission
60% of newer foundations (post-1990)
have an issue-based mission
33% of all family foundations have both

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Informed Americans who
don’t trust nonprofits to “do
what is right”
General public less trusting
Getting worse
In which sectors do wealthy individuals have a “great
deal of confidence” to solve societal problems?
1. Individuals
2. Nonprofits and congregations
3. Businesses
4. Government

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More flexible, short-term,
task-based work
Personal fulfillment & skill-
building over obligation
Choice, customization

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“Encore Stage” and “Half-
Time” careers and mentoring
2/3rds family foundations
have founders at the table,
actively shaping legacy
Online, collaborative
Quicker access to leadership
Self-driven, easily
disengaged and detached

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Hyperagency – the inclination and
ability “to be producers rather than
simply supporters of philanthropic
projects.” – Paul Schervish

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Voluntary action for
the public good
Robert Payton

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Social economy = all the
ways we use private
resources to create public
benefits or public good
Lucy Bernholz
PhilanthropicAction
Invest
Impact investing
Community investment
Crowdfunding
Impact investing &
shareholder activism
Venture funds, B-Corps
Some microfinance
Peer lending platforms
Buy
Tuition & healthcare
Products & tickets
Nonprofit social enterprises
Crowdfunding
Cause marketing
Responsible purchasing
Sustainable supply chains
Farm and artist CSAs
Fair trade purchases
Sharing economy
Give
Charities
Foundations, DAFs
Other nonprofits
Gov’t agencies
Crowdfunding
Crowdsourcing & co-
production, co-working
Remittances
Candidates & bundlers
Crowdfunding, prizes,
grassroots $
Nonprofits Businesses Individuals
Recipient of Action

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PhilanthropicAction
Invest
Impact investing
Community investment
Impact investing &
shareholder activism
CrowdfundingBuy
Crowdfunding
Responsible purchasing
Sustainable supply
chains
Crowdfunding
Farm and artist CSAs
Give
Foundations
DAFs
501(c)(4)s
Crowdfunding Remittances
Candidates & bundlers
Crowdfunding, prizes,
grassroots $
Nonprofits Businesses Individuals
Recipient of Action

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How we perceive trust,
togetherness, community
Spiritual & social capital
How we work, volunteer,
and engage together
How we give, buy, and
invest
Human & intellectual capital
Financial capital

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G1: Bob & Barb
(Silent Generation)
G2: Jim, Jenny, Jason
(Boomers)
G3: 7 Grandchildren
(Gen X & Y)
$25M Private Foundation
G1, G2, Atty on Board
50% to Star City
50% G2 Discretionary

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How do present choices impact future success?
Dilemma #1: Engaging grandchildren (Gen X & Y) in
the foundation
Dilemma #2: Balancing shared commitment & values
with individual interests

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“The capacity to
adapt, improvise,
and shape change”
“The act of mindful,
strategic anticipation”
“The ability to bounce
back to healthy
functioning after stress”
Family/
Personal
Emotion-based
Loyalty &
belonging
Continuity &
harmony
More free-form
Task-based
Competence &
commitment
Growth
& change
More structured
Philanthropic
Tools

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Skills
Knowledge
Relationships
Identity
Reputation
Gifts/Grants
Self DAF
(or foundation)
PracticesPractices
Policies
Principles &
Purpose
Principles &
Purpose
Adapted from materials by Patricia M. Angus, Esq.
Grantmaking, operations,
meetings, training
Governance, participation,
decision-making
Vision, mission, values

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PracticesPractices
Policies
Principles &
Purpose
Principles &
Purpose
“How we use our resources”
“How we organize and
communicate”
“Our shared belief systems”
PrinciplesPrinciples
Policies
Principles &
Purpose
Principles &
Purpose
Values or principles exercises
Founder/legacy statements
Oral/video histories
Purposeful trusts, ethical wills
Family volunteering

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PrinciplesPrinciples
Policies
PracticesPractices
Decision-making processes
Conflict of interest (legal +
ethics)
Board role, eligibility, terms
succession
Participation rules (obligation
vs. invitation?)
Lifespan, termination and/or
transition
PracticesPractices
Policies
PracticesPractices
Philanthropy Practices
Hometown/founder $
Discretionary $
Mission/strategic $
Investments for good
Social, human, intellectual
capital – for problem solving,
leadership, advocacy

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PracticesPractices
Policies
PracticesPractices
Operationalizing the principles
and policies
Making time for storytelling and
mutual learning
Keeping family connected to
community, beneficiaries
Can family truly self-facilitate,
authentically engage everyone?
PracticesPractices
Policies
Principles &
Purpose
Principles &
Purpose

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Only tool for
togetherness
Fighting the
last war
Killing fun
Connection
to founding
Passive
participation
Sales May lack incentive, time, knowledge
Expert
Advisor
Sophisticated technical results
May lack “art of philanthropy” skills
Discernment
Client clarity, truthtelling
More open to collaboration
May not know all philanthropy trends

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Matthew Wesley
Division & Distribution
Preservation
Growth
Private Foundation + DAFs
Family Foundation + 501(c)(4)
B Corp Investment Fund + Foundation
Checkbook + PAC + Community Dev Bank
Supporting Org + SuperPAC + Impact Investments
LLC + DAF

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1. Intentionality around intersection between family,
philanthropy, business cultures
2. Mutual value proposition
3. Governance system (purpose, policy, practice)
4. Form follows function (e.g. goals drive tools)
How will you ensure
resiliency in your
donors’ philanthropy in
the midst of
unavoidable change?

Navigating trends in family philanthropy

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