Book report: Mapping the New World of American PhPhilanthropy

Mapping the New World of American Philanthropy:

Causes and Consequences of the Transfer of Wealth

By Susan U Raymond, PhD and Mary Beth Martin, Esq.

This is a book of short essays written by 12 or so authors, who explore the causes and consequences of the $41 trillion dollars of wealth that will be transferred between now and 2050. Lots of facts and figures with analysis.

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• There are 7.5 to 9 million dollar households in the U.S., half are headed by retirees.

• ·Those over 65 have 4x the medical expenses as those under 65.

• Pg. 30-31. Those who give from earned wealth tend to give proportionately more for every increment of increased wealth than those who inherit wealth. In this sense, the Internet is a powerful tool for high-engagement philanthropy among those new, technologically-savvy donors. .e-philanthropy becomes a common part of the transfer of wealth.

·         Andrew Carnegie’s Gospel o f Wealth ignited American philanthropy as we know it today. That for wealthy Americans, philanthropy was not a discretionary choice but rather a fundamental moral responsibility. Philanthropy was the only appropriate use of surplus funds.

·         Research at Boston College says of the $41 trillion transferred, $6 trillion would be transferred to nonprofits.

·         Technology has also dramatically reduced the expense and labor associated with creating and administering a philanthropy vehicle.

·         Check out www.foundationsource.com for resources.

·         Venture philanthropists demand more accountability and results, but are willing to fund nonprofit startups.

·         There is now a Chartered Advisor in Philanthropy program. As of this writing, there are fewer than 200 individuals who have that designation.

·         Page 55. What happens in the world of religion matters on the street corners of America. and what happens on the street corners of matters to the world. Of the 25 wealthiest young philanthropists, half specified their interest in global issues or organizations.

·         The nonprofit sector now represents nearly 10 percent of the US economy and philanthropy moves something on the order of one-third of a trillion dollars of economic wherewithal to nonprofits.

·         Venture philanthropy provides a case in point, where the philanthropist’s role is denominated less in case than in expertise and hands-on management.

·         Page 68. The highest growth of new family foundations in the 1990’s occurred in the West.

·         The Chronicle of Philanthropy has noted that Donor Advised Funds are the fastest growing form of philanthropy, outpacing both CRT’s and private foundations.

·         The wealth transfer of trillions; the “giving while living” trend; the for-profit/nonprofit continuum, with all o fits permutations; and the baby boomer residual dream of changing the world for the better will continue to evolve new species of organizations.

·         Page 124. Foundation trustees and directors must exercise their fiduciary responsibility to ensure that grants are made to financially stable organizations that will make a philanthropic impact. Measuring the impact is often the real challenge.

·         Page 137. The younger generation of MySpace, Flickr, and FaceBook will quickly take advantage of a network to connect with others. But an older generation of philanthropists has yet to fully rely on twenty-first –century technology to handle all communications.

·         Page 161. These new philanthropists are getting involved in the public sector for the same reason they got involved in the private sector: They want to change the world. And they run their philanthropic endeavors the same hands-on way they run their business, creating models to raise money and awareness and finding ways to measure returns and increase efficiency.

·         ..idolatrous philanthropy (making things over in your own image).

·         How different history would have been if decision makers had asked, “Who is not at the table as we assess this situation and make this decision?”

·          www.GlobalGiving.com  is an independent online marketplace that provides a level playing field for both funders and those with project ideas. The marketplaces have provided a way to understand real issues facing communities, at the grassroots level. It also surfaces many good ideas about what local people consider appropriate solutions and technologies.  Global giving is now experimenting with ways to open access to even more projects, via a system whereby GlobalGiving community is able to nominate and vet projects. Almost a fourth of the projects are coming from the open access channel.

o   Such an ecosystem is only just now beginning to emerge in the international aid space. But such a market-based system will also be  a threat to larger, more established organizations, since it will expose them to greater transparency and competition.

·         Page 241. ..the best way to ensure that philanthropy conforms to your desires is to give the money away while you are alive. These new leaders are personally involved, not only in making their wealth, but in giving it away.

·         Page 252. The rate of growth in the number of nonprofits is outpacing that of commercial organizations.

·         Page 260. What is striking about the data is that the closer Americans get in age to being those who will transfer wealth, the less they trust the nonprofits who seek to receive that wealth. More than half of all contributions were given to local religious organizations, where there are strong personal community ties and involvement.

·         Page 262. Billions are wasted on ineffective philanthropy.

·         One of the key ways to surmount this challenge is to build emotional connections among audiences through stories. Stories serve to create relationships. People want to read about people.

·         Page 274. Every nonprofit should reformulate its programs and priorities to devote 10% of its effort to understanding, projecting, and planning for the consequences of change in its environment.