Philanthropy is often seen as society's risk capital. That means the onus is on philanthropists, nonprofit leaders and social entrepreneurs to innovate. But philanthropic innovation is not just about creating something new. It also means applying new thinking to old problems, processes and systems.
The Phoenix Business Journal recently hosted a non-profit business summit. It is exciting to see the efforts of committed, passionate people and organizations helping support those less fortunate and under-served populaces.
Here are a few items discussed during the event. Despite significant changes in the ownership and HQ location of some of the largest corporate donors, many of them do not expect changes in local giving levels. It also shows the importance of not relying too heavily on a few major corporate donors.
While corporate giving is expected to stay static, the greatest opportunity to increase donor engagement lies with individuals. An organization can enhance their current donor base by creating greater engagement and education about their mission.
Once a donor has picked their favorite charities to support, the next decision is probably how much and how will they donate. These giving levels are based on current financial means and has typically increased during times of prosperity during bull markets in real estate and the stock market.
In the current low interest rate, high volatility investing environment, foundations in particular are limited to being able to only make grants based on actual income generated by a portfolio. Individuals can give from their principle depending on how it fits into their overall financial and planned giving plans. However, if both foundations and individuals were able to reduce their overall investment risk while increasing their investment income they could increase their philanthropic endeavors.
At Caliber Companies we have been participating in creating a new paradigm in investing and philanthropy that we are offering to share with non-profit leaders and philanthropists.
If philanthropists were making their gifts based on new financial assumptions and higher levels of income they could afford to be more charitable.
To learn more, stay tuned to future posts and contact me at firstname.lastname@example.org, 602 326-5360