This document provides an overview of philanthropy and the charitable sector. It discusses how philanthropy is becoming more complex, with greater focus on impact and multi-generational engagement. Generational shifts are changing how wealth is managed and transferred. The document outlines different donor profiles, vehicles for giving, and tools for developing a strategic philanthropic plan, including evaluating charities and measuring impact. The case study demonstrates transforming a tax problem into a multi-million dollar foundation with long-term social goals.
2. Philanthropy 3.0
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 Roth
Warren Buffett, Melinda & Bill Gates
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3. Philanthropy 3.0
Learning Objectives
• A bit about Karma & Cents Inc.
• What is a Philanthropic Advisor
• How did we get here?
• Terminology
• Levels of Giving
• Perspectives on Philanthropy
• Who is at the table? Generational analysis
• Donor Profiles
• Business of Philanthropy
• Canada’s charitable sector
• Managing a Foundation
• Tools & Resources
• Vehicles for Giving
• Evaluating Charities & Donor Logic Model
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4. Philanthropy 3.0
About Us
Karma & Cents Team
• Gena Rotstein, FEA, Philanthropic Advisor
• Richard Ouellette, Managing Director
• Hallie Caplan, Lead Researcher
Who we Work With
• Family Businesses & Entrepreneurs
• Philanthropists
• Next Generation Inheritors
Current client roster:
$200M charitable assets under advisement
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5. Philanthropy 3.0
The Lab Process
•Create space to
define the
problem
Step 1
•Strange
Bedfellow
Conversations
Step 2 •Design a Solution
•Test risk Profile
Step 3
•Deploy to the
Field
•Design the Test
for Impact
Step 4 •Review Analysis
•Pivot/Tweak
•Decision Time –
Go/No-Go
Step 5
•Scale for Impact
Execute
Create conditions that allow for experimentation: Set ground rules, loosen policies, encourage
diversity, agree on what should be measured, share knowledge, allow for rapid failure
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7. Philanthropy 3.0
Family Legacy
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• Transitioned from third
generation to 4th generation
• Went from an operating
company to a holding
company
• Combination of private family
foundations and donor
advised funds
• Family that is around the
world with different political
and social interests
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8. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
How did we get here?
Lay it on the Line
Terminology and charitable landscape
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9. Philanthropy 3.0
Terminology
Impact Investing
Social Return on
Investing
Social
Entrepreneurship
Social Finance/
Social Capital
Legacy Gifts/
Bequests/
Endowments
Private Foundations
Shared Value/
Blended Value
Collective Impact
Social Innovation
Social Good
Annual Campaigns
Giving Circles
Donor Advised
Funds (DAF)
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10. Philanthropy 3.0
How Money Flows
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What we do to
show our support
How we show our
support
Why we support
charities
• Front-line Charity
• Annual Giving
• Special Events
• Private Foundation
• Public Foundation
• Charitable Trust
•Volunteering Time
•Donating In-Kind
•Chequebook Charity
•Engaged Philanthropy
•Strategic Philanthropy
•Leaving a Legacy
• Personal/Family Social Vision
• Donor Advised Fund
• Giving Circle
• Crowdfunding
• Micro-Loans
• “Groans”
• Social Impact
Investing
11. Level 1 – Needs
Based Giving
Level 2 – Empowering
Individuals
Level 3 – Capacity Building
Level 4 – Networked Philanthropy
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Philanthropy 3.0
How Money Flows
12. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Perspectives on Philanthropy
How attitudes shape the way money flows in the sector
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15. Philanthropy 3.0
Activity: Values & Characteristics
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- What stereotypes are being
presented?
- What are the external influencers
(ie. Woodstock, Band Aide, etc.)? - -
- What are the political pressures
on that generation (i.e. Cold War,
9/11)?
- How do you think these markers
have influenced or defined that
generation’s view of money and
philanthropy?
16. Business Edge
Next Gen Motivators
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Source:
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18. Maverick Informed
Steady
• Research driven but
validated by gut
• Shot-in-the-arm
• Emergency funding
• Limited track-record
• Start-up
• Non-trackable
• Research driven and
validated by relationships
• Longer-term relationship
• May include start-
up/seed capital
• Trackable
• Solution oriented
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• Tried and true
• Low-risk
• Problem focused, not necessarily solution based
• Established
Donor Profile Types
Characteristics of the Donor Profiles
20. Donor Profile – what it Looks Like
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Simplicity
Autonomy
Nimbleness
Risk
Complexity
Engagement
Consistency
Security
Family Donor Risk Profile
Dad Mom Family Foundation
21. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Business of Philanthropy
The industrialization of giving
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22. Business Edge
The Business of Philanthropy
Philanthropy is BIG Business
• Canada’s Charitable Sector = Automotive + Agriculture + Retail +
Manufacturing
• Today’s philanthropists do more than just write cheques
• Time, Talent, Treasures & Ties
• Tackling some of societies most complex social problems where government and
industry have fallen off
Impact Investing
• Impact investing in Canada is expected to reach $300Billion by 2020
• International investments in private equity impact funds (19.7% ROI)
outperformed the benchmark (14.2%) by 5.5%
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24. Philanthropy 3.0
Case Study
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Silver Gummy Case Study
Working lunch – review case study
From managing a tax problem to generating social change
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25. Philanthropy 3.0
Silver Gummy Case Study
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Immediate tax problem
Young professional. Father passed
away leaving significant estate.
Tax problem due to inheritance.
Technical Solution: Set up foundation
$750K as a base to start foundation
Social Solution: K&C Social Impact Lab
Started running client through Social
Impact Lab
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26. Philanthropy 3.0
Silver Gummy Case Study
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Domestic
Violence
Health Care
and Mental
Health
Education
System
Urban
Planning
Diversity
Training/
Public
Servants
Social
Services
Justice
Business
Community
Government
and Policy
Immigration
•Strange
Bedfellow
Conversations
Step 2•Create space to
define the
problem
Step 1
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27. Philanthropy 3.0
Silver Gummy Collective Impact
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
Source: Collective Impact – Kramer, FSG Consulting
•Deploy to the
Field
•Design the Test
for Impact
Step 4 •Review Analysis
•Pivot/Tweak
•Decision Time –
Go/No-Go
Step 5
•Design a Solution
•Test risk Profile
Step 3
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28. Philanthropy 3.0
Silver Gummy Case Study
Impact
First
Time, Talent,
Treasure
and Ties
Immediate tax problem
Young professional.
Father passed away
leaving significant
estate.
Tax problem due to
inheritance.
Technical Solution: Set up foundation
$750K as a base to start
foundation
Social Solution: K&C
Social Impact Lab
Started running client
through Social Impact
Lab
$9Million
Foundation w/
multi-
generational
strategy
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29. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
Tools & Resources
How a Philanthropy Advisor works on the team
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30. 1. Understand what your family is really saying?
• Social Vision Assessment Questions handout
2. What type of family are you working with?
• More than just the wallet - 4 T’s worksheet
• What assets do you bring to the table? FISH(E) account
3. The Giving Plan
• What is impact?
• Donor Logic Model
• Giving Vehicles Comparison Chart
• Evaluating charities
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Business Edge
Tools & Resources - Handouts
32. Time Talent Treasures Ties
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Activity – More than Just your Wallet
4 T’s – Time, Talent, Treasures & Ties
33. Philanthropy 3.0
About the Charitable Sector
Driven by Values,
Not Valuables
Impact
First
The Giving Plan
What is impact? What goes into a plan?
Donor Logic Model handout
Giving Vehicles Comparison Chart handout
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34. Philanthropy 3.0
Identifying Big Bets - Impact
• Nature of Impact
o Type of change created
• Scale of Impact
o Number of people helped
• Depth of Impact
o Amount of change
generated
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35. Philanthropy 3.0
What goes into your philanthropy plan?
Your Giving Strategy Should…
• Define a clear social objective
• Why is this important to you/your kids or
client?
• What are the expectations? What does
success look like?
• Ask meaningful questions and
connect with experts to help find the
answers
• Include all the 4T’s
• Have impact measurement standards
• Be able to share findings, including
failures, with other funders and
organizations
36. Philanthropy 3.0
Evaluating Charities – Donor Logic Model
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Mission,
Vision &
Values
By supporting this organization,
will I achieve my social vision?
Articulating
the problem
What are my goals - Institutional
or Systems Change? Why is this
important?
Goals &
Objectives
What is the issue I want to
address?
Conduct due diligence.
Integrate a vehicle for giving
Set expectations with fundee
Activities &
Outputs
Outcomes, Short &
Long-term Impact
37. 1. Changing landscape
• The bifurcated world between charity and for-profit businesses is blurring with
the rise and success of social enterprises & social purpose businesses
2. Generational changes
• Women will control 70% of wealth in Canada by 2050
• $8Trillion will be transitioned in Canada from spouse to spouse or generation to
generation by 2050
• There are now five generations at the decision-making table
• Estimated that 85% advisors who do not engage with their NextGen clients early
on will be “dumped” within six months of wealth transfer
3. Giving Plan
• Time, Talent, Treasures & Ties
• There are different vehicles for giving, each provide you with different supports
to meet your philanthropic objectives
• Start with WHY – everything leads back to your Social Vision & Mission
• Everyone can be a philanthropist – it’s not just about the size of the cheque
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Philanthropy 3.0
Summary
38. Philanthropy 3.0
Driven by Values,
Not Valuables
Impact
First
Time, Talent,
Treasure
and Ties
Crafting their
Philanthropic
Identities
How to reach us
grotstein@karmaandcents.com
rouellette@karmaandcents.com
1-866-936-GIVE (4483)
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Notas do Editor
Focus on the disconnect occurs and provide advisors with tools and resources to engage and carry the philanthropic conversation to the next level.
What is a philanthropy advisor?
A philanthropic advisor is someone who works alongside the individual or family and their other technical advisors supporting them in a number of ways from setting up the impact strategies of the giving, conducting research, providing governance support, interviewing family members for legacy documents and writing the business plan of a foundation.
This type of advisor does not represent the interests of any one charity and holds the trust and relationship of the family and the donor as sacrosanct.
This advisor also manages the granting, onboarding of charities & disbursements to organizations. They will also do follow-up reporting and evaluations.
Lay it on the line
Start with an easy one and warm up to more obscure statements
I need coffee to kickstart my day
I donate or volunteer to charity at least once a year
I am a first generation Canadian
English is my first language
I have gifted a Goat
I have received a Goat
I have a will and it is up to date
Family vacations is the glue that holds us together
My siblings and I always get along
My family has shared what our intentions are for our legacy with every relevant member
The government should be the main source of funding for all our societies social, educational, and healthcare needs
Private donors should be responsible for arts, culture, recreation and non-basic need support
I can be pretty sure of having my voice heard in a group in which I am the only member of my age
When I open up a history book, I know I will easily find positive images of someone of my gender
We have an obligation to give to charity locally
We have an obligation to give to organizations internationally
I am a philanthropist
Explain buzz words but also distill down so that people can see the relevancy for themselves.
Start with WHY
Level one – Needs based giving
Front-line charities
Band-aide solutions
Level two – Empowering Individuals
Funds are a one-to-one or a one-to-many experience
Seeing your money put to work in the life of an individual
Level three – Capacity Building
Supporting organizations that help other organizations
Investing in an agency’s operational effectiveness
Level four – Networked Philanthropy
Leveraging your network to further the issue
Activity –
In groups of 3 or 4 take a piece of flipchart paper and a few coloured markers. You will see a generation title at the top of the page.
Draw a character like one of the images on this screen (or perhaps make it gender neutral)
Over the next few minutes discuss what factors influence the generation that is identified and draw images that reflect that generation.
Regroup and discuss what is drawn. What stereotypes are being presented?
What are the external influencers (ie. Woodstock, Band Aide, etc.)? What are the political pressures on that generation (i.e. Cold War, 9/11)?
How do you think these markers have influenced or defined that generation’s view of money and philanthropy?
Just like an investment strategy, we assess the risk tolerance of donors. This helps us understand the types of charities and best ways to design solutions for the funders.
What donor types look like.
Notice that it is a horseshoe not a line b/c Mavericks and Informed donors are so close together. What makes them different is how they give.
How these donor types finance charitable activities.
What it looks like as we map out a family’s donor profile.
These tools are to help you have more meaningful conversations to deepen the relationships between you and your clients and differentiate yourselves in the market. For families these tools can help ensure your advisors are able to support you in your philanthropic planning.
The assets in these accounts get translated to the 4 T’s
Family – use this to map out personal 4 T’s
Advisor – use this to help your clients map out their 4 T’s
What do you have available.
Successful giving plans are ones where the funder isn’t just bringing financial resources to the table - the resources are Time, Talent, Treasures and Ties.
Worksheet and DLM handout
How do you decide which charities to engage with?
Decide my philanthropic goals then identify the charities that will support those goals
Does this feed back to my social vision and my giving mission?
Are you an institutional donor or a social change donor? Do you want to fund root causes and systemic issues, or do you want to fund front-line emergency type organizations?
Does the vehicle for giving enable you to achieve what you want to achieve in the time you want to achieve it
Conduct due diligence and do research before supporting a charity
Gather information about an organizations operations, their effectiveness and success track-record
Set expectations on what you want charities to measure and how you want them to provide you with feedback as a result of your contributions
Determine how you want to communicate information about your charitable giving
These tools are to help you have more meaningful conversations to deepen the relationships between you and your clients and differentiate yourselves in the market. For families these tools can help ensure your advisors are able to support you in your philanthropic planning.