There is a new way for benevolent fund-raising circulating around the country. Some call it "doing well while doing good." This creative business philanthropic paradigm can have a two-edged benefit to it, if done with the right kind of company. Edge one: providing a manufactured product, such as a meal pack for feeding the starving. Edge two: utilizing an income generating business system that works with the purchasing and sending of such product.
So, you need a company that pays commissions, probably in the network marketing realm. The company has to have certain aspects to their business system, organization, and compensation plan that will benefit philanthropic efforts. First, the company must pay commissions on a product that is dedicated to charitable work, like providing food or something else that benefits the poor, starving, and needy. That way, buying and sending the product to the needy is a charitable act in itself. Second, this company must have a residual income plan for ongoing ordering and commissions. This aspect benefits the charity or charitable giver that becomes involved with the product and company. Thirdly, they must have a multilevel compensation structure. In order for the charitable giver or charity to grow a perpetual income for their cause, they must be able to build a multilevel structure that generates a consistent and growing monthly income.
The dual benefit is that the charitable product itself can be purchased and provided for those in need, and the income from building a charitable purchasing network will benefit the enrolled charity or giver. Again, the two edged benefits need to be: (1) a product that meets needs; (2) an income generating system.
Selasa, 26 September 2017
Minggu, 17 September 2017
Family Philanthropy - 4 Ways to Structure Cross Generation Giving Activities
Members of wealthy families can utilize philanthropy to build and carry on the family legacy as well as to teach values and provide practical life experience to younger generations - but how do you organize to allow multiple family members from multiple generations to participate in the same effort?
Here are 4 examples to aid you in determining what will work in your family.
Use your Family Meeting
The simplest way to involve family members is to just discuss philanthropy at the family meeting. In this example, the family does not have specific funds allocated to giving. Each immediate family unit does their own giving, but the members plan and discuss the causes that support the family mission and values. The family meeting agenda includes an item to review the family mission and values and hear from family members on which charitable organizations best support them. Each family is free to utilize the results of the discussion as they see fit.
Set up a Family Philanthropic Council
A more formal, but still a simple and private way to engage across generations can be to set up a family council (or committee) to focus on philanthropy. In this example, the family establishes a pool of money each year to donate as a group (using the money each individual family would have donated). The family at large then selects family members to utilize the pooled family funds, and identify, investigate and contribute to charities that fit the mission as well as provide informal reporting back to family meeting through the year and formal reporting at the family meeting. This council may well provide reporting to the family on how the pooled funds were invested and why.
Build a Grandparent/Grandchild Philanthropic Board
In this example, the grandparents mentor the grandchildren (without the parent's presence) in the various things that are needed to give wisely. This fosters inter-generational communication and relationship building and gives the grandparents a continuing role in family governance without treading on the children's domain in the family. All grandchildren over the age of 6 participate by submitting a request to grant money to their preferred cause. This helps the child learn to organize material, make a presentation (at their own level) and become an advocate of something they are highly interested in.
Children 12 and older form an investment and administrative committee for the board - letting them learn and practice investment methods along with learning business skills that translate into the for profit world.
Establish a Formal Family Philanthropic Foundation
Families with 5 or more million dollars can consider establishing a public entity (Trust or Corporation) as an ongoing Foundation to carry forward their legacy of giving for many generations.
A foundation is a family-controlled trust or nonprofit corporation that is exempt from federal and state income taxes. It's purpose is to make grants to publicly supported organizations that address the needs of the community - ones the family cares about. There are strict government regulated reporting requirements and rigid restrictions on using the money for private individuals (including donor and family).
Processes, objectives and reporting obligations for a foundation should be formal and disciplined - including doing an 'investor profile' to determine types of investments, levels of risks, etc.
Here are some of the benefits of establishing a Family Foundation:
the family's influence is felt and the family charity objectives are achieved for the long term - no matter what happens to the rest of the family fortune
formal investment managers identify and use an investment policy appropriate to gift giving (level of risk and etc)
proper governance and a dedicated management team keep the foundation healthy
Drawbacks of establishing a Family Foundation include:
the cost of setting up the legal entity to hold the foundation as well as the costs of running it (salaries of the personnel involved)
the risk of loss of family involvement due to the more formal nature of the Foundation
In summary, four methods of involving multiple generations in family philanthropy are to a) use your family meeting b) set up a family council c) let the grandparents mentor grandchildren while the grandchildren handle the giving and d) set up a formal family foundation.
Here are 4 examples to aid you in determining what will work in your family.
Use your Family Meeting
The simplest way to involve family members is to just discuss philanthropy at the family meeting. In this example, the family does not have specific funds allocated to giving. Each immediate family unit does their own giving, but the members plan and discuss the causes that support the family mission and values. The family meeting agenda includes an item to review the family mission and values and hear from family members on which charitable organizations best support them. Each family is free to utilize the results of the discussion as they see fit.
Set up a Family Philanthropic Council
A more formal, but still a simple and private way to engage across generations can be to set up a family council (or committee) to focus on philanthropy. In this example, the family establishes a pool of money each year to donate as a group (using the money each individual family would have donated). The family at large then selects family members to utilize the pooled family funds, and identify, investigate and contribute to charities that fit the mission as well as provide informal reporting back to family meeting through the year and formal reporting at the family meeting. This council may well provide reporting to the family on how the pooled funds were invested and why.
Build a Grandparent/Grandchild Philanthropic Board
In this example, the grandparents mentor the grandchildren (without the parent's presence) in the various things that are needed to give wisely. This fosters inter-generational communication and relationship building and gives the grandparents a continuing role in family governance without treading on the children's domain in the family. All grandchildren over the age of 6 participate by submitting a request to grant money to their preferred cause. This helps the child learn to organize material, make a presentation (at their own level) and become an advocate of something they are highly interested in.
Children 12 and older form an investment and administrative committee for the board - letting them learn and practice investment methods along with learning business skills that translate into the for profit world.
Establish a Formal Family Philanthropic Foundation
Families with 5 or more million dollars can consider establishing a public entity (Trust or Corporation) as an ongoing Foundation to carry forward their legacy of giving for many generations.
A foundation is a family-controlled trust or nonprofit corporation that is exempt from federal and state income taxes. It's purpose is to make grants to publicly supported organizations that address the needs of the community - ones the family cares about. There are strict government regulated reporting requirements and rigid restrictions on using the money for private individuals (including donor and family).
Processes, objectives and reporting obligations for a foundation should be formal and disciplined - including doing an 'investor profile' to determine types of investments, levels of risks, etc.
Here are some of the benefits of establishing a Family Foundation:
the family's influence is felt and the family charity objectives are achieved for the long term - no matter what happens to the rest of the family fortune
formal investment managers identify and use an investment policy appropriate to gift giving (level of risk and etc)
proper governance and a dedicated management team keep the foundation healthy
Drawbacks of establishing a Family Foundation include:
the cost of setting up the legal entity to hold the foundation as well as the costs of running it (salaries of the personnel involved)
the risk of loss of family involvement due to the more formal nature of the Foundation
In summary, four methods of involving multiple generations in family philanthropy are to a) use your family meeting b) set up a family council c) let the grandparents mentor grandchildren while the grandchildren handle the giving and d) set up a formal family foundation.
Kamis, 31 Agustus 2017
Philanthropy: The Secret Key to Lasting Wealth and Achievement
Last week I started a series of articles based on the work of George McCully speaking to the paradigm shift occurring in the philanthropic world. As George writes in his book, "... paradigm shifts are irreversible changes in fundamental structures and strategies, some of the basic outlines of the future paradigm, or aspects of the old paradigm that will probably disappear... " And he further explains, "Causation in history is the coincidence of mutually conducive conditions".
In order to understand that is happening, and how things are being re-aligned and restructured, let's look at the following table.
20th Century 21st Century
Technology
Printing, mail, telephone
Computerized databases, the cloud, the Internet, social media
Economy
Traditional, steady growth, generally stable, corporate economy
High technology, global economy, rapid expanse new wealth, super global corporations
Institutions
Private foundations lead, community foundations, large dominating charities, professional associations, National Taxonomy of Exempt Entities (not donor centered)
Donor-advised funds, private foundations multiply, focus to whole philanthropic community, barriers dissolve, virtual philanthropic community develops
People
Professionalization makes philanthropy highly technical
New and emerging donors explore unconventional ways of giving and volunteering
Practices
Industrialized fundraising - telemarketing, direct mail and competitive grant-making
Donor education, venture philanthropy, giving circles, e-philanthropy, collaboration, advisors
Rhetoric
Moral obligation "giving away", "giving back", "nonprofits", "needy", "disadvantaged".
Constructive appeal "Donor investors", "social change", "make a difference". Classical concept of philanthropy arises.
Results
< 2% GDP and AGI, only 25% itemizers of charitable deductions, < 20% of taxable estates make charitable bequests, 5% largest charities get 80% of the grant dollars, 80% of the smallest charities get 5% of the grant dollars
Aiming higher and too soon to tell what the paradigm shift will produce.
Note: the above table is this author's interpretation of key points found on page 69 of Philanthropy Reconsidered: Private Initiatives - Public Good - Quality of Life
By reviewing the above and for those in the industry and who support to the philanthropic sector, it is easy to acknowledge that computerization and the Internet have revolutionized every aspect of our civilization, including charitable work. Earlier this year, $11,000 was donated to charity in a single tweet via Twitter.
Globalization is breaking down barriers not only in people's ability to communicate with anyone around the world, but also to be able to support any initiative they want. A good example of this is Kiva, which provides microloans to businesses around the world.
Donor-advised funds and private foundations continue to grow, and as I too have written about in the past, the lines are continually being blurred between "non-profits" and "for-profits" as more and more companies align their business models to benefit society and not only their investors. Could there be a day where most charities simply cease to exist?
Innovation and experimentation continue in an unrelenting and never before seen pace. Technology, the economy, institutions, etc are all playing a part in the perfect storm of mutually conducive conditions that are changing what we all understood of charity through the 20th Century. And, although we know it is evolving, most of us do not have a full picture of what the face of philanthropy will look like 5, 10 or 15 years from now. This provides each one of us as people who work in the field of social purpose or support the industry as donors (or consumers) with an opportunity to help chart the course into the future.
In order to understand that is happening, and how things are being re-aligned and restructured, let's look at the following table.
20th Century 21st Century
Technology
Printing, mail, telephone
Computerized databases, the cloud, the Internet, social media
Economy
Traditional, steady growth, generally stable, corporate economy
High technology, global economy, rapid expanse new wealth, super global corporations
Institutions
Private foundations lead, community foundations, large dominating charities, professional associations, National Taxonomy of Exempt Entities (not donor centered)
Donor-advised funds, private foundations multiply, focus to whole philanthropic community, barriers dissolve, virtual philanthropic community develops
People
Professionalization makes philanthropy highly technical
New and emerging donors explore unconventional ways of giving and volunteering
Practices
Industrialized fundraising - telemarketing, direct mail and competitive grant-making
Donor education, venture philanthropy, giving circles, e-philanthropy, collaboration, advisors
Rhetoric
Moral obligation "giving away", "giving back", "nonprofits", "needy", "disadvantaged".
Constructive appeal "Donor investors", "social change", "make a difference". Classical concept of philanthropy arises.
Results
< 2% GDP and AGI, only 25% itemizers of charitable deductions, < 20% of taxable estates make charitable bequests, 5% largest charities get 80% of the grant dollars, 80% of the smallest charities get 5% of the grant dollars
Aiming higher and too soon to tell what the paradigm shift will produce.
Note: the above table is this author's interpretation of key points found on page 69 of Philanthropy Reconsidered: Private Initiatives - Public Good - Quality of Life
By reviewing the above and for those in the industry and who support to the philanthropic sector, it is easy to acknowledge that computerization and the Internet have revolutionized every aspect of our civilization, including charitable work. Earlier this year, $11,000 was donated to charity in a single tweet via Twitter.
Globalization is breaking down barriers not only in people's ability to communicate with anyone around the world, but also to be able to support any initiative they want. A good example of this is Kiva, which provides microloans to businesses around the world.
Donor-advised funds and private foundations continue to grow, and as I too have written about in the past, the lines are continually being blurred between "non-profits" and "for-profits" as more and more companies align their business models to benefit society and not only their investors. Could there be a day where most charities simply cease to exist?
Innovation and experimentation continue in an unrelenting and never before seen pace. Technology, the economy, institutions, etc are all playing a part in the perfect storm of mutually conducive conditions that are changing what we all understood of charity through the 20th Century. And, although we know it is evolving, most of us do not have a full picture of what the face of philanthropy will look like 5, 10 or 15 years from now. This provides each one of us as people who work in the field of social purpose or support the industry as donors (or consumers) with an opportunity to help chart the course into the future.
Kamis, 10 Agustus 2017
Charitable Synergy - Make Your Fundraising Campaign a Success
Ever heard the term, "Charitable Synergy?" It's the most significant innovation in charitable fundraising in this decade.
Let's say I want you to contribute to my favorite charity, which happens to be the Goodness Giving Meal Pack program. I'll bet you have never heard of it. That's the challenge! How does a great charity, you've never heard of, introduce you to its program and give you the opportunity to participate if you like its cause?
As is the case with many other contemporary charity programs, the meal pack program participants are not part-time players. The XanGo Goodness Foundation was formed by its Billion dollar parent to fund innovative programs that help make the earth a better place. They teamed with AmeriCares, who provides almost 1 Billion dollars in aid programs annually, to make sure the Goodness Giving Meal Pack is delivered.
Yet not only have you probably never heard of the Goodness Giving Meal Pack program you most assuredly do not know anything about the XanGo Goodness Foundation and most likely nothing about AmeriCares. Assuming you don't know the players how does the charity get your attention without spending a ton of money, which they would rather spend distributing Goodness Giving Meal Packs, on advertising and public relations? That's the question charities are continually faced with. The answer?
Synergy! The unknown charity teams up with 1 or 2 other charities that you do know about. The charities are given a referral fee donation for introducing the program to you. They also ask that you refer 10 friends to the program by e-mailing them an introduction. In this manner many people who would like to participate, if they knew about the program, are given the opportunity.
Why would you do that, why not just make a donation to the charity you know about? You could do that; or you could make one donation that benefits all of them? As an example for $45 a month the Goodness Giving Meal Pack program provides 17 meals, delivered; and gives the charity that introduced you to the program a referral fee donation; and if another charity or individual introduced that charity they give them a referral fee too. That's synergy.
Why do the charities want to participate in a program where they don't get all the money you donate? Charities don't like to have to keep asking you for more donations any more than you like being asked. Charities are always looking for ways to increase their donor base and they want a program that provides for an automatic monthly donation so they won't have to keep asking you for money.
It is simply a better system for everyone involved. A charity finds a program with a large donor base that compliments their cause and together they use a program, like the Goodness Giving Meal Pack program, made up of trusted partners that they can work with to provide their donors with more bang for their buck while the charity has the opportunity to increase its donor base. Synergy, a Win - Win situation for everyone.
Let's say I want you to contribute to my favorite charity, which happens to be the Goodness Giving Meal Pack program. I'll bet you have never heard of it. That's the challenge! How does a great charity, you've never heard of, introduce you to its program and give you the opportunity to participate if you like its cause?
As is the case with many other contemporary charity programs, the meal pack program participants are not part-time players. The XanGo Goodness Foundation was formed by its Billion dollar parent to fund innovative programs that help make the earth a better place. They teamed with AmeriCares, who provides almost 1 Billion dollars in aid programs annually, to make sure the Goodness Giving Meal Pack is delivered.
Yet not only have you probably never heard of the Goodness Giving Meal Pack program you most assuredly do not know anything about the XanGo Goodness Foundation and most likely nothing about AmeriCares. Assuming you don't know the players how does the charity get your attention without spending a ton of money, which they would rather spend distributing Goodness Giving Meal Packs, on advertising and public relations? That's the question charities are continually faced with. The answer?
Synergy! The unknown charity teams up with 1 or 2 other charities that you do know about. The charities are given a referral fee donation for introducing the program to you. They also ask that you refer 10 friends to the program by e-mailing them an introduction. In this manner many people who would like to participate, if they knew about the program, are given the opportunity.
Why would you do that, why not just make a donation to the charity you know about? You could do that; or you could make one donation that benefits all of them? As an example for $45 a month the Goodness Giving Meal Pack program provides 17 meals, delivered; and gives the charity that introduced you to the program a referral fee donation; and if another charity or individual introduced that charity they give them a referral fee too. That's synergy.
Why do the charities want to participate in a program where they don't get all the money you donate? Charities don't like to have to keep asking you for more donations any more than you like being asked. Charities are always looking for ways to increase their donor base and they want a program that provides for an automatic monthly donation so they won't have to keep asking you for money.
It is simply a better system for everyone involved. A charity finds a program with a large donor base that compliments their cause and together they use a program, like the Goodness Giving Meal Pack program, made up of trusted partners that they can work with to provide their donors with more bang for their buck while the charity has the opportunity to increase its donor base. Synergy, a Win - Win situation for everyone.
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