A Better Way To Give
Is it possible? Is it possible to give a dollar today to a charity of choice, get it back eventually so that is not wasted just because you need that tax deduction, and then give it away again some day so that many charities, as opposed to one, can benefit from your philanthropy?
Is it possible to make certain that a charity will use your donated dollar the way it was intended to be used without a member of your own family having to play the tough guy in the relationship you have with a charity of choice?
Is it possible to benefit a number of charities with a single donation, even if those charities are in multiple states, abroad, or work with for-profit ventures, too?
Is it possible to make life run more smoothly for you when it comes to managing and growing both your philanthropic and private wealth?
The answer to all of these questions is, yes! There is indeed a better way to give and you can have it, too.
Wealth, just because it is focused on benefiting charity, should not have to expect any less than it would when investing in private portfolio companies. Concepts used in managing charitable wealth are and should be the same as those used in managing your private wealth.
Hedged risk. Leverage. Performance. Return on investment. Transparency. These are all important words and concepts that any prospective donor should demand be central to their giving strategy – not just their private investing philosophy.
And, philanthropy, when managed properly, can be a powerful tool for change. Your impact can be both meaningful and immensely satisfying. It is easier than you may think.
To make your giving more successful, you should consider the following five (5) leading objectives:
Invest it and do not just give it. Make the purpose of your giving mean something more than simply getting that tax deduction. Have a relationship with your charitable beneficiary, not just a transaction. Get involved with their mission, ask to see measurable performance from them, and bring your own network of family, friends and colleagues in to the mix as well.
Hold it for good use and insist that the gift be afforded the independent accountability and proper custody that it deserves. Many (not most) charities try to manage their philanthropic wealth portfolios as efficiently and as safely as possible but their trusted advisors may not be as altruistic (or as responsible) as the charity itself when it comes to managing that money. Ask for third party custody from reputable houses before just turning over the money. And seek independent accountability whenever and wherever possible.
Grow it through the charitable fund managers who use the funds to benefit your charities of choice. Insist that their fund managers be universal in their recommended choices of managers. Ask for appropriate oversight from the investment advisors. Request information on how their money is managed, at what rate of return, at what cost, through which portfolio mix.
Protect it through appropriate compliance and fiduciary assurance by using a knowledgeable community foundation to work with the charity in managing your gift. Make sure that charity has been vetted by a reputable grading entity such as Donor’s Edge or Charity Navigator. The more you know ….
Inspire it by making your giving transformational to the projects you are supporting, transparent to those who will hopefully benefit from it, and transcendent so that others around the nation and the world can use it too.
Follow these steps as you can, and you will see that there is indeed a better way to give.