is your family's philanthropy ready for the future?

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Is Your Family’s Philanthropy Ready for the Future?Tony Macklin, CAP®

Pikes Peak Community Foundation 2016 Symposium on Philanthropy

AgendaI. 6 Macro TrendsII. Implications for Philanthropic Families

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Family Philanthropy’s Dual Purpose

Connection to family members, family legacyPhilanthropic giving and/or social impact

I. Trends

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1. Definition of “Community”

Identity ≠ GeographyCommunity ≠ Geography

2. Divided NationPolitical polarizationIncome and asset gapsRacial and ethnic segregationOpting out

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3. Declining TrustInformed Americans who don’t trust nonprofits to “do what is right”Lower for general publicTrust declining since 2008

3. Declining Trust

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4. Volunteerism & Engagement

All Generations

More flexible, short-term, task-based work Skills-based (pro bono)Meaning, personal fulfillment Good use of time (in own terms)

4. Volunteerism & Engagement

Older Generation

“Encore Stage” careers and volunteering/mentoringLegacy and meaning• Half Time – Bob Buford• Connected for Good – John Stanley

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4. Volunteerism & Engagement

GenerationX & Y

Crowdfunding, online decision & petition toolsQuicker access to leadership and effective collaborationSelf-driven, easily disengaged and detached

5. New PowerHyperagency – the inclination and ability “to be producers rather than simply supporters of philanthropic projects.” – Paul Schervish

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4. Volunteerism & Engagement

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6. Definition of Philanthropy

Voluntary action for the public good

6. Definition of PhilanthropySocial economy = all the ways we use private resources to create public benefits or public good

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6. Definition of Philanthropy6. Definition of Philanthropy

II. Implications

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Your assumptions are your window on the world.Scrub them off every once in a while or the light won’t come in.- Isaac Asimov

Collision of 2 SystemsEmotion-basedLoyalty & belongingContinuity & harmony

Task-basedCompetence & commitment

Growth & change

Family/Personal

Philan-thropic

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1. Mutual Value PropositionSkills

KnowledgeRelationships

IdentityReputation

Gifts/Grants

Self Foundation(or DAF etc…)

2. GovernancePrinciples

Policies

PracticesPatricia M. Angus, Esq.

Vision, mission, values

Governance, participation, grantmaking

Operations, meetings, training

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Principles

Policies

Practices

Founder/legacy statementsOral/video historiesPurposeful trusts, ethical willsValues exercisesFamily mission trips

Principles

Policies

Practices

Conflict of interestBoard terms & eligibilityParticipation rules (obligation vs. invitation?)Decision-making processes

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Principles

Policies

Practices

Philanthropy Policies• Hometown/founder $• Discretionary $• Mission/strategic $• Investments

Principles

Policies

Practices

Meetings• Make time for storytelling and learning• Can family truly self-facilitate?

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3. Form Follows FunctionPrinciples

Policies

Practices

3. Form Dictates Function: ConsequencesOnly tool for togetherness Fighting the last war Killing fun

Connection to founding Passive participation Unprepared advisors

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3. Form Follows FunctionPrivate Foundation + DAFs

Family Foundation + 501(c)(4)B Corp Investment Fund + Foundation

Checkbook + PAC + Community Dev BankLLC + DAF

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How will you ensure your family’s philanthropy will

be resilient and thrivein the midst of unavoidable change?

Tony Macklin, CAP®

317.250.3805tony@tonymacklin.comwww.tonymacklin.com