Transcript Innovations in Philanthropy / Private Social Investment

Innovations in Philanthropy /
Private Social Investment
Grupo de Fundaciones
Oficina
Bs. As 13 e 14 de marzo, 2006
Agenda
•
•
•
•
•
•
•
•
•
Foundations and their environment
Markets and Competition
Competitive Advantages
Model Cases / Best Practice
Emerging Philanthropy Models
Community Foundations
Charitable Gift Funds
Venture Philanthropy Funds
Websites
Foundations and their environment
Quantitative growth: increased assets
Financial Markets
 Growth of private wealth
Corporations
 Succession in corporate ownership/
governance
 Capital market driven investment grows
against institutional investment
 Corporate giving
 Growth of stock market financing
 Corporate social responsibility
 Transfer of wealth to the next generation
Foundations and their environment
Qualitative Growth: new division of labor between sectors
State
Third Sector
 New balance: state/ civil society
 Growth
 Changed expectations towards the state:
- from the service providing state to the
empowering, enabling state
 Competitive pressure of the corporate
sector
 Competitive pressure of the corporate,
private sector
 Financial resources:
- public funding reduced
- fees, revenue growing
- donations, philanthropy growing
New Donor Values
• SelfExpression
• Entrepreneurs
hip
• Participation
• Competencies
Emerging Philanthropy
Models
• Traditional funds administered by
churches or local administrations
• Community foundations
• Charitable Gift funds
• Venture Philanthropy Funds
• e-philanthropy (“virtual foundations“)
Community Foundations I
• Independent Charity
• Multiple Donors
• Variety of charitable purposes
• Geographic Focus
• Endowment-based
• Transparency of organization
and activities
Community Foundations II
Donor Intent
Professional
Management
Donor Services
Community Services
Community Foundations III
Donor involvement in community foundations
can be arranged in the forms of:
Capital
account
Operating
budget
- an unrestricted donation to the
endowment
- a restricted donation to the
endowment
- a donation to establish a
separate fund
administered by the community
foundation
A Charitable Gift Fund is.......
• - a registered charity by IRS standards
• - organizing professional asset
management
• - providing professional program and
grant management
Charitable Gift Funds work.....
• - analogous to private
foundations
• - as public charities (US tax law)
• - on the advice of the donor on
grantmaking
• - at a great variety of asset
volumina
• - as rating-agencies to evaluate
projects and
non-profits worth “investing in”
• - for all charitable purposes
Charitable Gift Funds offer.....
• - philanthropy starting at assets of $
10,000
($25,000)
• - a choice between grantmaking
during one`s
lifetime and after one`s death
• - high returns on investment
• - tax-effective giving without a
separate organization
Donor Survey Results I
(Fidelity Charitable Gift Funds)
• 75 % of donors have increased their
charitable
giving
• 39 % contribute to a greater number of
organizations
• 95% are highly satisfied with the
Charitable Gift Fund
• 83 % have recommended the Charitable
Gift
Fund to friends and family
Donor Survey Results II
(Fidelity Charitable Gift Funds)
• 33 % have used professional advisors
(mostly
financial advisors)
• 76 % have visited the organizations
they are
recommending
• 29% are interested in research on
philanthropy
• 32 % are interested in education
materials delivered by the Internet,
newsletters, and/or seminars
Venture Philanthropy Funds
•
Long term
Business Plan for
•
support
•
•
•
Several donors
grantees
Large grants
few projects
Investment
=Grant
•
support to social
building
entrepreneurs
non-profits
•
Capacity
in
Creation of
strong
partners
Venture Philanthropy Funds the Concept

Donor Contributions
- On an ongoing annual basis
- No endowment building
- Possibility of opting out
- Flexibility of amount
- Minimum Requirement

Donor Education
- Training effect of venture phil. fund
- Shared information gathering on
Venture Philanthropy - Criteria
of support
 „Venture Capital“ Metaphor
- „Close“ investor relationship
- Long term capacity building
- Evaluation of progress made
- Financial as well as management support
- Donor activitiy against entrepreneurial
background
 Donor Community and Exchange
- Learning processes
- Streamlining of resources
- Possibility of comparison
Goals of Venture Philanthropists
• - Institutional
support
• - Experienced investment teams
• - Partnership with grantees
• - Investment focus
• - Grantmaking driven by SRIs
• - Creating competence and leadership in
grantee organizations
• - Financial support
Websites
•
Morino Institute on Venture
Philanthropy:
www.morino.org
• e-philanthropy report of the Kellogg
Foundation:
www.communitytechnology.org/docu
ments.html
• Fidelity Charitable Gift Fund:
www100.charitablegift.org