Changing Strategies for Philanthropic Giving: Implications for Financial Planners

Raymond, Susan
November 2010
Journal of Financial Planning;Nov2010, Vol. 23 Issue 11, p44
Academic Journal
Traditional charitable giving is changing at the speed of innovation. Philanthropic dollars are being used not just as gifts but as investment capital in social enterprises and in nonprofits, with the expectation of a quantifiable, calculated "social return on investment." New tools and strategies are being employed by philanthropists, corporations, and nonprofits, and financial planners need to keep current on these innovations for their work with clients, for their work with nonprofits, and because nonprofits will target financial planners for endorsements and client referrals. Philanthropy is changing partly because of competition for charitable dollars to make a real difference for widespread problems and a growing desire for involvement beyond check-writing on the part of philanthropists. Other factors include new possibilities borne of technological innovation, and philanthropic interest among younger donors. This article explores five kinds of philanthropic innovations: cause- branding and -marketing, program-related investments (PRIs), mission-related investing (MRI), investment strategy that feeds philanthropy, and social enterprise. It goes on to outline implications for planners in their work with clients and separately outlines implications for planners who serve on nonprofit boards.


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