Ramping Up Your Philanthropy: An Overview for Donors
Introduction
Ramping up can offer a number of opportunities… including deep engagement of the board, community, and other key stakeholders; extended reach and influence on issues and communities of greatest interest; exploration into new funding strategies and areas; and ultimately greater impact.-Ramping Up Your Foundation: Key Considerations for Planning and Managing a Significant Increase in Giving; Exponent Philanthropy and The Philanthropic Initiative
Many philanthropists today are finding themselves in the position to considerably increase their charitable giving. There might be an infusion of assets through a liquidity event – perhaps a business goes public or is purchased. There might be a significant increase in assets directed to philanthropy due to the death of a family member. Or, someone may simply want to allocate more financial resources to charitable giving and participate in other philanthropic activities at a particular stage of life.
Regardless of the situation, it is important to thoughtfully and carefully prepare for the ramp-up. The fundamental questions you should ask yourself now are the same ones philanthropy experts suggest you ask yourself when you are first getting started with your philanthropy:
- Why do you want to give?
- When do you want to give?
- Where do you want to give?
- What do you want to give?
- Who do you want to give with you?
- How do you want to give?
- How will you know how successful you are in your giving?
The Goldman Sachs Philanthropy Fund publication “Getting Started with Your Philanthropy” addresses each of these questions in great detail.
Once you have answered these basic questions, you are ready to think about the following key topics:
- What kinds of legal, financial, tax, and timing implications might be involved with ramping up my philanthropy?
- What kinds of changes to the governance of my philanthropy should I consider?
- What kinds of changes to my mission statement and goals should I consider?
- How should I plan for staffing and administration?
- What are grantmaking best practices I should keep in mind?
- What are other special considerations I should be aware of?
The process of ramping up your philanthropy can and should be, in most cases, planned ahead of time. Ideally, each of the areas covered in this publication should be thought through well in advance of a liquidity event or an increase in assets due to the passing of a family member.
Certainly, there are some circumstances when a person may not have any forewarning such as the sudden death of a family member or an unexpected windfall. But in most cases, planning for the growth should not be a rushed or hurried activity. In this publication, we help you think through how best to approach ramping up your philanthropy.
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