Inevitably, with your level of success and wealth, at some point your thoughts will turn to philanthropy. After all, with wealth comes a certain degree of social responsibility: the desire to contribute to those that haven’t been quite as fortunate as you. But you’re not quite Rockefeller, Bloomberg or Gates. So, what qualifies you to join this elite club?
The truth is that anyone can be a philanthropist because at its core, philanthropy is about doing or giving something for humanitarian purposes. And everyone can do or give something to promote the welfare of others – not just money, but also time, skills, expertise, access to networks and even our passion and vision.
Consider this… Ten years ago, while travelling across East Africa, two university students were struck by the lack of safe and fun play facilities for disadvantaged children. With interests in construction and child development, Tom & Carla decided to build a small playground to support the psycho-social and physical development of the local children. As soon as the playground was opened, they were mobbed by hundreds of excitable children, who were enthralled by the new facilities.
The duo returned to the UK, convincing friends to raise funds and to return to Uganda with them the following year to build a bigger and better playground. Once again, the local children were over-joyed by the playground and the community reported a huge improvement in the children’s mental health, behaviour and educational outcomes.
Buoyed by the success of their adventure, Tom and Carla set up a small charity to build a few more playgrounds. Little did they envision that just 10 years on, East African Playgrounds would become the leading provider of custom-built playgrounds and play-based learning programmes in East Africa. The charity has built more than 350 playgrounds in refugee settlements and other vulnerable communities to support the holistic development, education and childhood of more than half a million children. Indeed, East African Playgrounds now works in partnership with leading NGOs such as Unicef and Save the Children, to ensure play is integrated within humanitarian programmes and is preparing to replicate its successful model across Africa.
So, if two university students with limited means and experience can do something and achieve this impact, imagine for a moment what you might accomplish. Philanthropy
can be profoundly personal and complex but with the right strategy in place you can easily effect major changes.
KEY FACTORS
As you explore the philanthropic landscape, you may wish to think about some key factors:
Your motivation
Why do you want to be a philanthropist? Are there social injustices that you simply can no longer tolerate? Is it for tax purposes? Is it to enhance your business or personal brand? One could argue that there is no right or wrong answer. It’s the outcome that’s important. But since your underlying motivation will influence your philanthropy strategy, do take the time to reflect on why you want to give.
Your criteria
Aside from deciding which causes you will support, have you considered what you will give towards? Will your gift be restricted to a specific activity or will you empower the organisation to use your donation how they best see fit? What are your thoughts on funding overheads or capital costs? Many organisations struggle to meet the costs of infrastructure and expansion, yet these are critical to the on-going success of any organisation. Will you support large charities or focus on smaller ones that can perhaps better serve more targeted needs? What are the specific objectives of your donation and how will you measure the impact?
The mechanics
There are many ways to give - from making a cash donation to volunteering your time and impact investing. Could you donate assets such as rights to royalties, buildings or stocks? Will you gift a percent of your wealth or a fixed sum? Will it be a one-off gift, or will you support the organisation for several years? Do you want a financial return or just the social impact? Will you give while you live, or wait until you die for your legacy to take effect? How involved do you want to be as a philanthropist? Maybe you’re even tempted to set up your own foundation or charity.
There are many more areas to consider as you contemplate your future as a philanthropist. However, understanding your motivation and being clear on your giving criteria and the mechanics will enable you to establish a robust foundation from which you can develop your philanthropic investments. Effective philanthropy can be transformational for all those involved. It can reward and inspire you in more ways than you could ever imagine. So, allow yourself to wonder… what would you love to achieve in the next 10 year? And take the first steps to making it happen, today.
