Organizational Giving: Family Organizational Giving: Family Foundations & Corporate Foundations & Corporate

GivingGiving

The Most effective The Most effective philanthropy helps people philanthropy helps people

help themselves and help themselves and preserves their self-respect.preserves their self-respect.

- Eugene C. Dorsey- Eugene C. Dorsey

Family FoundationsFamily Foundations

Of approximately 71,000 foundations Of approximately 71,000 foundations in the U.S., more than 36,700 are in the U.S., more than 36,700 are family foundations.family foundations.

Family Foundations: foundation in Family Foundations: foundation in which the donor or donors relatives which the donor or donors relatives play a significant governing role. play a significant governing role. (Council of Foundations)(Council of Foundations)

Family Foundations cont.Family Foundations cont.

In the past 20 years family In the past 20 years family foundations have doubled. foundations have doubled.

These foundations are a creative way These foundations are a creative way for families to get to know each other for families to get to know each other better and work together for the better and work together for the public good. public good.

Family Foundations cont.Family Foundations cont.

Advisors and consultants to family Advisors and consultants to family foundations is a new industry that helps foundations is a new industry that helps with grantmaking. with grantmaking.

Advice, facilitation of family retreats and Advice, facilitation of family retreats and meetings, coaching, referrals, publications, meetings, coaching, referrals, publications, and conferences are available.and conferences are available.

National Center of Family Philanthropy (National Center of Family Philanthropy (www.ncfp.org); Council of Foundations’ Family Foundation program ); Council of Foundations’ Family Foundation program ((www.cof.org); Association of Small Foundations); Association of Small Foundations

((www.smallfoundations.org) )

Family Foundations cont.Family Foundations cont.

These resources can help family These resources can help family members sort out their values and members sort out their values and interest areas and come to some interest areas and come to some guiding principles and processes. guiding principles and processes.

At least $1 million is a sufficient At least $1 million is a sufficient dollar amount for starting a family dollar amount for starting a family foundation.foundation.

Family Foundations cont.Family Foundations cont.

Family foundations must give a Family foundations must give a minimum of 5% of the fund’s asset minimum of 5% of the fund’s asset value annually.value annually.

Foundation’s expenses for investments and Foundation’s expenses for investments and administration are part of the 5%.administration are part of the 5%.

Donors to family foundations can Donors to family foundations can deduct cash gifts of up to 30% of their deduct cash gifts of up to 30% of their adjusted gross income.adjusted gross income.

Sharing Values & GoalsSharing Values & Goals

Communication through dialogues Communication through dialogues and email exchanges can provide and email exchanges can provide new ways of relating and can help new ways of relating and can help heal past differences of family heal past differences of family members. members.

Families that have begun to discuss Families that have begun to discuss giving and volunteering together are giving and volunteering together are often surprised by all they learn.often surprised by all they learn.

Sharing Decision MakingSharing Decision Making

Role of community representatives and the Role of community representatives and the participation of the younger generation participation of the younger generation should be under consideration when should be under consideration when deciding to start of family foundation.deciding to start of family foundation.

Many of the next generation are aware that Many of the next generation are aware that the answers for many of the world’s the answers for many of the world’s problems will be best sought by engaging problems will be best sought by engaging decision makers from grassroots decision makers from grassroots communities or turning family assets and communities or turning family assets and grants to them.grants to them.

Books to considerBooks to consider

Classified: How to Stop Hiding your Classified: How to Stop Hiding your Privileges and Use it for Social Privileges and Use it for Social ChangeChange, by Karen Pittleman, by Karen Pittleman

Creating Change Through Family Creating Change Through Family Philanthropy: The Next GenerationPhilanthropy: The Next Generation, , by Alison Goldberg, Karen Pittleman, by Alison Goldberg, Karen Pittleman, & Resource Generation& Resource Generation

Resource GenerationResource Generation

An organization that engages next An organization that engages next generation givers in their 20s and generation givers in their 20s and 30s.30s.

This new generation of inheritors is This new generation of inheritors is even more enthusiastic about how even more enthusiastic about how better informed our decisions can be better informed our decisions can be added to community support.added to community support.

Decision Making ChoicesDecision Making Choices

Deciding alone, or with family member(s), or a Deciding alone, or with family member(s), or a significant other.significant other.

Giving to one’s family foundation and letting other Giving to one’s family foundation and letting other family members decide.family members decide.

Partnering with community members, family, or Partnering with community members, family, or both.both.

Partnering with funding or giving circle with other Partnering with funding or giving circle with other donors and advisors.donors and advisors.

Turning the decision making over to community Turning the decision making over to community advisors, friends, family members, or colleagues.advisors, friends, family members, or colleagues.

Giving to United Way or other community-based Giving to United Way or other community-based foundations that may or may not include other foundations that may or may not include other donor activists.donor activists.

Giving to religious or spiritually based congregations Giving to religious or spiritually based congregations to decide together.to decide together.

Next GenerationNext Generation

Engaging the younger generation by Engaging the younger generation by establishing committees providing establishing committees providing intergenerational leadership and intergenerational leadership and mentoring provides a learning mentoring provides a learning opportunity for both generations.opportunity for both generations.

This allows the next generation to offer This allows the next generation to offer ideas and concerns about everything ideas and concerns about everything from grant processes to to investment from grant processes to to investment policies. policies.

Next GenerationNext Generation

Expanding the next generation’s Expanding the next generation’s expertise, leadership, and voices are expertise, leadership, and voices are key steps to making the current key steps to making the current intergenerational transfer of wealth intergenerational transfer of wealth successful.successful.

Organizational resources:Organizational resources: www.resourcegeneration.orgwww.resourcegeneration.org www.yesworld.orgwww.yesworld.org Leveraging Privilege for Social ChangeLeveraging Privilege for Social Change

Other ConsiderationsOther Considerations

Roughly 1 in 8 of the larger family Roughly 1 in 8 of the larger family foundations have paid professional foundations have paid professional staff.staff.

Making family funding truly Making family funding truly transformative, having an adminstrative transformative, having an adminstrative staff or support beyond family members staff or support beyond family members is usually a saner route.is usually a saner route.

Outsourcing most of the work saves time and Outsourcing most of the work saves time and resources.resources.

Being a professional administrator for your Being a professional administrator for your family has its risks and rewards.family has its risks and rewards.

The National Center for Family The National Center for Family Philanthropy (www.ncfp.org) and the Philanthropy (www.ncfp.org) and the National Network of consultants to National Network of consultants to Grantmakers (www.nncg.org) both Grantmakers (www.nncg.org) both offer referrals to consultants as well offer referrals to consultants as well as performance and ethical standards as performance and ethical standards for those considering this investment for those considering this investment in capacity of your family foundation. in capacity of your family foundation.

Developing A “Statement of Developing A “Statement of Donor Legacy” Donor Legacy”

A statement that sets forth the A statement that sets forth the legacy that founding donors wish to legacy that founding donors wish to leave can be invaluable tool for a leave can be invaluable tool for a family foundation, as it provides family foundation, as it provides important background information important background information about the foundation’s mission for about the foundation’s mission for present and future trustees.present and future trustees.

StatementStatement

Describes the donor’s vision and intent for Describes the donor’s vision and intent for the foundation and touching on the history the foundation and touching on the history of the foundation.of the foundation.

Include donor’s:Include donor’s: Life and accomplishmentsLife and accomplishments Interests, values, traditions, and perspectivesInterests, values, traditions, and perspectives Specific intent for foundationSpecific intent for foundation Wishes succeeding generations of trustees to Wishes succeeding generations of trustees to

perpetuate this legacy over timeperpetuate this legacy over time

LegacyLegacy

An organic, living entity, An organic, living entity, encompassing not only the donor’s encompassing not only the donor’s original statement of intent, but also original statement of intent, but also all the subsequent work and all the subsequent work and accomplishments of the foundation accomplishments of the foundation and its grantees.and its grantees.

Corporate Giving and Corporate Giving and Corporate FoundationsCorporate Foundations

Activities that companies voluntarily Activities that companies voluntarily undertake to have a positive impact undertake to have a positive impact on society.on society.

cash contributions, contributions of cash contributions, contributions of products and services, volunteerism, and products and services, volunteerism, and other business transactions to advance a other business transactions to advance a cause, issue, or nonprofit organization.cause, issue, or nonprofit organization.

Corporate Giving & Corporate Corporate Giving & Corporate FoundationsFoundations

Number of corporate foundations has Number of corporate foundations has doubled since the 1980s, and a new doubled since the 1980s, and a new generation of corporate leaders is bringing generation of corporate leaders is bringing new attention to corporate citizenry.new attention to corporate citizenry.

Various philanthropic ways of joining Various philanthropic ways of joining communities:communities:

Cash support, lending executives to nonprofit causes, Cash support, lending executives to nonprofit causes, giving teams time to volunteer together, donating giving teams time to volunteer together, donating equipment and services, encourage employees to equipment and services, encourage employees to volunteer on their own time.volunteer on their own time.

StatisticsStatistics

76% of consumers would switch 76% of consumers would switch brands or retailers to one associated brands or retailers to one associated with a good cause when price and with a good cause when price and quality are equal.quality are equal.

87% of employees at companies with 87% of employees at companies with cause related programs feel a stronger cause related programs feel a stronger sense of loyalty to their employer.sense of loyalty to their employer.

Starting a Corporate Starting a Corporate FoundationFoundation

Step 1: Define priority interest areas Step 1: Define priority interest areas and ways to get involved in these and ways to get involved in these areas. areas.

corporate engagements- corporate engagements- form part of an form part of an ongoing corporate strategy for community ongoing corporate strategy for community involvement that may also have a goal involvement that may also have a goal enhanced business performance. enhanced business performance.

Corporate engagements have potential for Corporate engagements have potential for positive impact on local communities and a positive impact on local communities and a direct or indirect benefit on the corporation.direct or indirect benefit on the corporation.

Include philanthropic activities and activities Include philanthropic activities and activities that tap into the corporation’s core that tap into the corporation’s core competencies and operations.competencies and operations.

Why address social Why address social objectives?objectives?

1.1. Values:Values: represents an expression of represents an expression of core company valuescore company values

2.2. Strategy:Strategy: supports or enhances a supports or enhances a key long-term business strategykey long-term business strategy

3.3. Pressure:Pressure: responds to a short-term responds to a short-term external pressure, such as external pressure, such as regulation or advocacy group regulation or advocacy group activities.activities.

Strengthening Corporate Strengthening Corporate GivingGiving

Review company’s true commitment to Review company’s true commitment to giving and service.giving and service.

Set goals to increase giving.Set goals to increase giving. Create a culture of giving all year long.Create a culture of giving all year long. Reward outstanding employees with Reward outstanding employees with

matching their donations.matching their donations. Increase giving and volunteerism as part Increase giving and volunteerism as part

of employee and management perks and of employee and management perks and training.training.

Strengthening Corporate Strengthening Corporate GivingGiving

Spend less on corporate training and take Spend less on corporate training and take teams to work for team-building volunteer teams to work for team-building volunteer efforts.efforts.

Establish a corporate giving office.Establish a corporate giving office. Survey your employees.Survey your employees. Require all management to have giving plans.Require all management to have giving plans. Sponsor a giving fair.Sponsor a giving fair. Have your own giving plan at home.Have your own giving plan at home. Be a civic leader and encourage management Be a civic leader and encourage management

to do the same.to do the same.

Informative Web sitesInformative Web sites

The Center for Corporate Citizenship at Boston The Center for Corporate Citizenship at Boston College- www.bcccc.netCollege- www.bcccc.net

Council of Foundations- www.cof.orgCouncil of Foundations- www.cof.org Wise Giving- www.wisegiving.orgWise Giving- www.wisegiving.org The Chronicle of Philanthropy- The Chronicle of Philanthropy-

www.philanthropy.comwww.philanthropy.com The Conference Board- www.conference-board.orgThe Conference Board- www.conference-board.org The United Way- www.unitedway.orgThe United Way- www.unitedway.org Choice in Giving- www.choiceingiving.orgChoice in Giving- www.choiceingiving.org Our Giving Community- Our Giving Community-

www.ourgivingcommunity.orgwww.ourgivingcommunity.org