The document describes Karma & Cents' Social Impact Lab process for philanthropists. The 6-step lab process helps donors define problems, design solutions through collaboration, deploy solutions, evaluate impact, and decide whether to scale up or out. It provides an example of a young professional who inherited wealth and used the lab to establish a $10 million multi-generational foundation. The changing philanthropic landscape and need for experimentation and feedback to solve complex issues is also discussed.

1. CAGP
Philanthropy 3.0
Financing Solutions Instead
of Funding Problems
04-10-2019
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2. Philanthropy 3.0
Learning Objectives
• A bit about Karma & Cents Inc.
• What is a Philanthropic Advisor
• What is a Social Impact Lab
• The Changing Landscape
• Business of philanthropy
• Wealth transfer
• Silver Gummy Case Study
• Using the lab model
• Tools & Resources
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3. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Crafting their
Philanthropic
Identities
About Karma & Cents: What is a
Philanthropic Advisor?
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4. Philanthropy 3.0
About Us
Karma & Cents Team
• Gena Rotstein, FEA, Philanthropic Advisor
• Richard Ouellette, Managing Director
• Hallie Caplan, Lead Researcher
• Ria Parsbey, Place2Give Foundation Manager
Who we Work With
• Family Businesses & Entrepreneurs
• Philanthropists
• Next Generation Inheritors
Current Client Roster
$200M charitable assets under advisement
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5. Philanthropy 3.0
The Lab Process
•Create space to
define the
problem
Step 1
•Strange
Bedfellow
Conversations
Step 2 •Design a Solution
•Test risk Profile
Step 3
•Deploy to the
Field
•Design the Test
for Impact
Step 4 •Review Analysis
•Pivot/Tweak
•Decision Time –
Go/No-Go
Step 5
•Scale for Impact
Execute
Create conditions that allow for experimentation: Set ground rules, loosen policies, encourage
diversity, agree on what should be measured, share knowledge, allow for rapid failure
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6. Philanthropy 3.0
Multi-Disciplinary Team
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7. Philanthropy 3.0
Family Legacy
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• Transitioned from third
generation to 4th generation
• Went from an operating
company to a holding
company
• Combination of private family
foundations and donor
advised funds
• Family that is around the
world with different political
and social interests
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8. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
The Changing Landscape
Activity – Lay it on the Line
The Business of Philanthropy - the Industrialization of Giving
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9. Philanthropy 3.0
Why this Workshop?
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10. Business Edge
The Business of Philanthropy
Philanthropy is BIG Business
• Canada’s Charitable Sector = Automotive + Agriculture + Retail +
Manufacturing
• Today’s philanthropists do more than just write cheques
• Time, Talent, Treasures & Ties
• Tackling some of societies most complex social problems where government and
industry have fallen off
Impact Investing
• Impact investing in Canada is expected to reach $300Billion by 2020
• International investments in private equity impact funds (19.7% ROI)
outperformed the benchmark (14.2%) by 5.5%
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11. Business Edge
Where is the Wealth?
Source:
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12. Business Edge
Next Gen Motivators
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Source:
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13. Business Edge
Focusing on the Rising Generation
Source:
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14. Philanthropy 3.0
Case Study
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Silver Gummy Case Study
If you don’t pay attention to the “heart” you leave money on the table
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15. Philanthropy 3.0
Silver Gummy Case Study
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Immediate tax problem
Young professional. Father passed
away leaving significant estate.
Tax problem due to inheritance.
Technical Solution: Set up foundation
$750K as a base to start foundation
Social Solution: K&C Social Impact Lab
Started running client through Social
Impact Lab
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16. Philanthropy 3.0
The Lab Process
•Create space to
define the
problem
Step 1
•Strange
Bedfellow
Conversations
Step 2 •Design a Solution
•Test risk Profile
Step 3
•Deploy to the
Field
•Design the Test
for Impact
Step 4 •Review Analysis
•Pivot/Tweak
•Decision Time –
Go/No-Go
Step 5
•Scale for Impact
Execute
Create conditions that allow for experimentation: Set ground rules, loosen policies, encourage
diversity, agree on what should be measured, share knowledge, allow for rapid failure
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17. SIL – Step 1
Donor Logic Model
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Mission,
Vision &
Values
By supporting this organization,
will I achieve my social vision?
Articulating
the problem
What are my goals - Institutional
or Systems Change? Why is this
important?
Goals &
Objectives
What is the issue I want to
address?
Conduct due diligence.
Integrate a vehicle for giving
Set expectations with fundee
Activities &
Outputs
Outcomes, Short &
Long-term Impact
•Create space to
define the
problem
Step 1

18. SIL – Step 1
How Money Flows
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What we do to
show our support
How we show our
support
Why we support
charities
• Front-line Charity
• Annual Giving
• Special Events
• Private Foundation
• Public Foundation
• Charitable Trust
•Volunteering Time
•Donating In-Kind
•Chequebook Charity
•Engaged Philanthropy
•Strategic Philanthropy
•Leaving a Legacy
• Personal/Family Social Vision
• Donor Advised Fund
• Giving Circle
• Crowdfunding
• Micro-Loans
• “Groans”
• Social Impact
Investing
•Create space to
define the
problem
Step 1

19. Level 1 – Needs
Based Giving
Level 2 – Empowering
Individuals
Level 3 – Capacity Building
Level 4 – Networked Philanthropy
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SIL – Step 1
How Money Flows
•Create space to
define the
problem
Step 1

20. Time Talent Treasures Ties
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SIL – Step 1
4 T’s – Time, Talent, Treasures & Ties
•Create space to
define the
problem
Step 1

21. SIL – Step 2
Strange Bedfellows
Convening Strange Bedfellows
Who should be at the table?
•Strange
Bedfellow
Conversations
Step 2
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22. SIL – Step 2
Silver Gummy Case Study
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Domestic
Violence
Health Care
and Mental
Health
Education
System
Urban
Planning
Diversity
Training/
Public
Servants
Social
Services
Justice
Business
Community
Government
and Policy
Immigration
•Strange
Bedfellow
Conversations
Step 2
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23. SIL – Step 3
Designing the Solution
Designing for Impact
When should you pivot? What drives the shift? How do you know what to
measure? How will you know when you got there?
• Design a
Solution
• Test Risk Profile
Step 3
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24. SIL – Step 3
Silver Gummy Collective Impact
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Source: Collective Impact – Kramer, FSG Consulting
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• Design a
Solution
• Test Risk Profile
Step 3

25. SIL – Step 3
Applying Levers
Leveraging social capital:
1. Research & Development
2. Transfer of knowledge across industries and sectors
3. Integrating existing solutions
4. Advocacy
5. Facilitating cooperation between organizations
6. Capacity Building
7. Youth Engagement
8. Supporting/Investing in Social Entrepreneurs/Social Purpose
Businesses
9. Support Grassroots Organizations
• Design a
Solution
• Test Risk Profile
Step 3
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26. SIL – Step 3
6 Benchmarks
• Leadership/Governance/Policies
• Program Implementation
• Community Engagement/Competitive Landscape
• HR/Admin
• Volunteer Engagement
• Finance/Fundraising
• Design a
Solution
• Test Risk Profile
Step 3
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27. SIL – Step 4
Deployment
Deploying the Solution
What happens in the marketplace?
• Deploy to the
Field
• Test for Impact
Step 4
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28. SIL – Step 4
Ecosystem Feedback
Track
Progress
What Do You
Most Need
to Learn?
Interpret
the Evidence and
Revise Approach
Clarify What
Success
Looks Like
Communicate
Lessons for Wide
Use
• Deploy to the
Field
• Test for Impact
Step 4
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29. SIL – Step 4
Evaluation – Will it work?
1. Clarify what Success looks like – What are your goals? How do you
THINK you can achieve them?
a. Did we achieve those goals?
2. Track Progress – What progress measures are you using?
a. Ensure that what is being measured can lead to determining the
cost:benefit risks (personal, organizational, social and financial)
b. What do you need to learn?
3. Interpret the evidence and revise your approach
a. Share what you have learned
b. Will these results “push the needle?”
• Deploy to the
Field
• Test for Impact
Step 4
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30. SIL – Step 5
Decision Time
Evaluating for Impact
Go/No-Go Decision Time
• Review Analysis
• Pivot/Tweak
• Decision time –
Go/No-Go
Step 5
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31. SIL - Step 5
Measuring for Impact
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• Review Analysis
• Pivot/Tweak
• Decision time –
Go/No-Go
Step 5

32. SIL – Step 6
Rolling Up or Out
Scaling for Impact
Scaling UP or Scaling OUT
• Scale UP or
OUT for
Impact
Execute
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33. SIL – Step 6
Silver Gummy Case Study
Impact
First
Time, Talent,
Treasure
and Ties
Immediate tax problem
Young professional.
Father passed away
leaving significant
estate.
Tax problem due to
inheritance.
Technical Solution: Set up foundation
$750K as a base to start
foundation
Social Solution: K&C
Social Impact Lab
Started running client
through Social Impact
Lab
$10Million
Foundation w/
multi-
generational
strategy
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34. Philanthropy 3.0
Why this process works
Image Credit - https://elginifest.org/get-involved/volunteerhands-01/
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35. Philanthropy 3.0
In Conclusion
What did we cover
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36. 1. Changing landscape
• The bifurcated world between charity and for-profit businesses is blurring
with the rise and success of social enterprises & social purpose businesses
2. Generational changes
• Women will control 70% of wealth in Canada by 2050
• $8Trillion will be transitioned in Canada from spouse to spouse or
generation to generation by 2050
• There are now five generations at the decision-making table
• Estimated that 85% advisors who do not engage with their NextGen clients
early on will be “dumped” within six months of wealth transfer
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Philanthropy 3.0
Summary

37. Philanthropy 3.0
Summary
3. Social Impact Lab
• Donors are more than just the pocketbook – Time, Talent, Treasures & Ties
• There are different vehicles for giving, each provide you with different supports to
meet your philanthropic objectives
• Start with WHY – everything leads back to your Social Vision & Mission
• Everyone can be a philanthropist – it’s not just about the size of the cheque
• Solving wicked problems is not a single solution, nor a single voice
• Failure is an option
• People and organizations come and go at different points during the lab
• Participants can pull on different levers to design solutions – some will be worth
testing
4. Designing & executing requires balancing the costs with the benefits
5. Feedback is critical
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38. Philanthropy 3.0
Resources
• “For Strategies for Large Systems Change,” by Steve Waddell – Stanford Social Innovation
Review, Spring 2018
• “When Innovation Goes Wrong,” by Christian Seelos & Johanna Mair – Stanford Social
Innovation Review, Fall 2016
• The Solution Revolution: How business, government and social enterprises are teaming
up to solve society’s toughest problems, by William D. Eggers & Paul MacMillan, Harvard
Business Review Press, 2013
• Beyond Philanthropy
• “Panic in the Chicken Coop,” Forum for Philanthropy, 2010
• “Education Decisions of Canadian Youth: A Synthesis Report on Access to Education,” by
Serena Cheung for the Higher Education Quality Council for Ontario, 2007
• “Bill Gates Admits He Was Wrong,” Huffington Post, 2010,
https://www.huffingtonpost.com/alan-singer/bill-gates-admits-he-was_b_389289.html
• “Wicked Problems,” Image Source CMU Transition Design, Irwin & Kossoff
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39. Philanthropy 3.0
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
How to reach us
grotstein@karmaandcents.com
rouellette@karmaandcents.com
1-866-936-GIVE (4483)
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