passing the buck

Passing the Buck: The Social Capital Legacy Conversation

Philanthropy and the

Next Generation

How much???

Leave enough for your children that they will do something, but not so much that they won’t do anything.

- Warren Buffet

“It’s not your pearls, it’s your pearls of wisdom.”

- Karen RothWarren Buffett, Melinda & Bill Gates

Discussion

• What is philanthropy?– Allocating your Social Capital

• What is social change?• Measuring social change• Making it real

– Creating a charitable giving plan– Handouts

My Wisdom Story

Definitions

Social Investing

Social Return on Investing

Social Entrepreneurship

Social Finance /Social Capital

Shared Value

Collective Impact

Social Innovation

Social Good

SOCIAL CHANGE

Definitions

Social Good: A good or service that benefits the largest number of people in the largest possible way.

Source: www.globaltrends.com

Social Innovation: A novel solution to a social problem that is more effective, efficient, sustainable, or just than current existing solutions, and for which the value created accrues primarily to society as a whole rather than private individuals.

Source: www.ssireview.org

Definitions

Social Return on Investment (SROI): A framework for measuring and accounting for the social, economic and environmental value that results from our activities, using monetary values to represent them.

Source: www.thesroinetwork.org

Social Investment: The term ‘social investment’ is often used to describe an investment in social or environmental outcomes combined with financial returns for the investor.

Strategic Philanthropy is about aligning your social vision with

effective social partners

What most needs doing… How do I know?

Social Capital: Resourcing Social Change

What we do...• Volunteering Time • Donating In-Kind• Chequebook Charity• Engaged Philanthropy• Strategic Philanthropy• Leaving a Legacy

How we do it...• Front-line Charity• Annual Giving• Special Events• Private Foundation• Public Foundation• Charitable Trust• Donor Advised Fund• Giving Circle• Crowdfunding• Micro-Loans• “Groans”• Social Impact Investing

Why we do...

• Personal/Family Social Vision

The stronger the causal alignment the larger your investment of time, intellectual capital and

financial support

Hierarchy of Values

Self-Reflection Questions

• Household• Community• Global• Setting priorities

Irrelevant

Pessimist

Ambivalent

Optimist

“Heading for a Revolution...”

Industrial Revolution• Improved productivity

Assembly Line• Technology Steam

power, shipping systems• Raw materials

Resource extraction• Infrastructure

Government Policies

Information Revolution• Improved productivity

Social networks to leverage operational objectives (crowd-sourcing)

• Technology Internet• Raw materials Ideas• Infrastructure

Government Policies, co-work space, social networks

Managing Expectations

Creating a Giving Plan

1. Identify areas of giving are most important

2. Audit past giving

3. Create a portfolio of responsible, well managed charities that will deliver impact

4. Establish a disbursement program that balances your donor interests (i.e. tax benefit) with charity need and timeline

5. Ongoing communication with organization Accountability

What to look for?

• Leadership– Qualifications– History & Connectedness– Board engagement

• Corporate Structure– Strategic v. Operational Board– Policies to protect donors and clients– D&O Insurance

• Program Implementation - Success rates– Capacity to report on long term effectiveness– What is success?

• Financial Management- Solution to Social Problem– Fundraising– Overhead Operational Effectiveness

• Competitive Analysis

Questions to Ask BEFORE Donating

1. How long has the organization been in operations?a. How long has the Executive Director been in the role?

b. Are the client testimonials/partner reports to share?

c. Is there a “road map” for the organization – business plan for delivering on its mandate?

2. Board Governancea. Same people on the board, or is there a mechanism

for succession planning and new idea generation?

b. Is the board a strategic board or an operational board?

3. What are the donation management terms? Are they part of the board monitoring activities?

a. How will your donation be managed and stewarded? Who will be your “contact”?

4. What is the operating budget? What is the program delivery budget?

5. Has the organization adopted the code of Ethical Fundraising and the Donor Bill of Rights?

Questions to Ask BEFORE Donating

QUESTIONS?

• Gena Rotstein – Chief Conversationalist, Philanthropic Advisor

• Margo Purcell – Inter-Generational Conversationalist• Karine Aviv – Charity Sector Market Analyst• Adam Aptowitzer, LLB – Charity Lawyer

www.dexterityconsulting.ca info@dexterityconsulting.cawww.place2give.com @DexterityCon or @Place2Give403-860-7572

Contact Info & Team