Ellen Israelson, Jewish Communal Fund’s Vice President of Philanthropic Services, participated in a panel discussion this past Tuesday at the Opal Group’s Family Office & Private Wealth Management Forum in Newport, Rhode Island. The panel discussion focused on the topic, “Insights and Innovations: Maximizing the Impact of your Philanthropy.” The discussion was moderated by Richard Marker of Wise Philanthropy and a professor at New York University. Fellow panelists included Walter Sweet, Vice President of Rockefeller Philanthropy Advisors; John Schaetzl, Senior Advisor at The Bill and Melinda Gates Foundation, and Katherine Holbrook Biotti, Senior Managing Director at Foundation Source.
Multi-generational philanthropy was one of several key philanthropic trends discussed.
“As one of the few donor advised funds that has never limited succession, we are proud to be working with three generations of philanthropic families simultaneously, helping them to navigate their different philosophies around how to have social impact and bring change to the world,” said Israelson.
Schaetzl pointed out that the Gates Foundation and many other grant-making organizations are shifting from grant-making activities to investment-like strategies. This includes the tremendous growth in PRI’s (Program-Related Investments), which use philanthropic dollars or required distributions from a private foundation to address a stated and strategic philanthropic goal with the potential for the return of the capital in a set time period.
“Donors continue to want deep involvement and a hands-on approach,” said Sweet, calling this the “all-assets approach.” They want to give charities their talents, know-how and expertise – not just money.
Israelson noted the increase in metrics, across the generations of philanthropists. “Donors are trying to understand not only the outcomes but why is it working,” she said.
Still, metrics can get out of hand. Schaetzl mentioned the example of one organization that spent $1.05 to evaluate the impact of each dollar. Some donors want the evaluation measure information, but balk when it comes to providing the funding for comprehensive evaluations.
Addressing the family office representatives in the room, panelists agreed that it is often helpful to bring in outside experts who are not working for the senior member of the family to facilitate inter-generational conversations, since they can serve as an unbiased third party. Hiring outside experts is especially important when it comes to the philanthropic portion of the family’s portfolio, said Biotti. Experts can provide a wealth of resources including an environmental landscape of a particular issue area that is important to the family.
Other topics discussed related to the appropriate age for getting children involved in philanthropy and tips for a meaningful experience while serving as a trustee for a not-for-profit organization.