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May
14
A friend of mine just sold her company and asked me a couple weeks ago if she should set up a foundation to manage her giving. It's a question that comes up regularly, as most people don't realize there are more options than giving from their checkbook/portfolio or creating a foundation.
Honestly, when I hear the question I cringe a bit...because it's not the question I wish people would start with. As I said to her and others, the first thing I encourage people to ask is "what do I want my giving to achieve?" The often complicated answer(s) to that question will then lead you to decide other key practical giving questions:
- What Vehicle? - If you're planning to give a large amount (at least $5M in my opinion) and want to focus on multiple or complicated issues over time, a foundation may be the way to go. If you're giving less or have more straightforward giving priorities, a donor advised fund or just giving directly can often be a better solution,.
- How Long? - Another question I always raise is how long you want your giving to last. If you're giving to an urgent problem like climate change, giving big now probably makes more sense than a 5% payout from a foundation in perpetuity. Conversely, if you want to support a need that will continue, such as classical music education, than a longer time horizon may make more sense.
- Who Decides? - A final question I wish was asked more often is who you want engaged in your giving. Do you want to do it alone, with your partner or spouse, or with your family? Do you want to bring in expert voices or people from the communities you are supporting? New voices can make your giving more effective and powerful, but changes the dynamic considerably from a family process and can require more work.
These are just some of the key questions I suggest people think about before they try to decide if starting a foundation is right for them...deceptively simple questions who answers will have a dramatic impact on the future of your giving.
I'm curious, what other questions do you think people should be asking?
May
07 Our Bold Givers work on the most fascinating projects!
One recent inspiring example - the Other Worlds Are Possible Giving Circle. Co-founded by Bold Giver Laurie Emrich several years ago, they are preparing to launch their third cycle and are seeking new members.
In its first two cycles, the circle distributed nearly $240,000 and coordinated a fascinating series of calls in which activists from the Global South conversed with one another, gave their perspectives on their own regional work in launching alternatives resource rights projects, and answered questions from Giving Circle participants.
If you’ve wanted to learn about (and help support) just and sustainable alternatives to dominant economic and social systems, I hope you’ll check out this opportunity. Plus you’ll get to know Laurie and the other fabulous members of the circle. Participation is open to individual donors and foundation staff and trustees and can range from just writing a check to participating in learning calls to serving on the core grantmaking committee. The circle is co-sponsored by Grantmakers Without Borders and Other Worlds. For more information, you can contact Susan Beaudry, Program Coordinator, at grambeau@bright.net. And if you do get involved, I’d love to hear what your experience is like.
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