Timothy Lappen, Founder and Chairman, Family Office Group, Jeffer, Mangels, Butler & Marmaro LLP
The recent turmoil in financial markets has significantly reduced funds available for donation, but the troubled economy will focus people on what's important to them rather than causing the demise of philanthropy, panelists said.
Jamie McCourt and Deborah Doyle McWhinney predict paradigm shifts in philanthropy driven by the economic realities and changes in the distribution of wealth and the demographics of potential donors. Gone is the era of simply writing a check, they said. Panelists expect a shift from program-based giving to an operations focus for sustainability.
Donors want more accountability for how their donation will be used; they want a connection with the cause; and they want to know the tangible outcome of their gift. Charities should be prepared for cautious donors who will ask more questions not only about the cause but also about their money management.
McCourt urged potential donors to perform their due diligence, investigating not only the heart of the charity but also their money management and track record. McWhinney encouraged donors to consider making a pledge rather than a one-time donation if there are concerns about a foundation's money management.
Panelists warned charities and recruiters about donor fatigue and encouraged fundraisers to know their audience and target their activities. McWhinney and McCourt advised potential donors to identify their passions and focus their giving. Otherwise, McWhinney said, "philanthropy is a labor not a labor of love."
McWhinney suggested that each person has a role to play and a way to contribute, that philanthropy is not restricted to the top few percent of the population. Audience participants spoke to the importance of securing small donations from a large number rather than large donations from a small number. With the surge of online social networking, this is more attainable then ever. Other ways the audience proposed expanding philanthropy included allowing for "indirect impact" by investing in a for-profit company that has charitable activities; mission-based philanthropy; and recognizing that there are resources other than money people can provide to help others.
In this economy, philanthropy has an opportunity to evaluate itself and be creative, to invest wisely and to think beyond monetary gifts, including donations of time, advice and expertise.
Global Conference 2013
Former Prime Minister Tony Blair, philanthropist Bill Gates and Strive Masiyiwa of Econet Wireless discuss advancing prosperity in Africa.
