Philanthropy can be approached from all sorts of angles. Traditional approaches involve donating money to a chosen cause. More innovative approaches include creating products and delivering services directly to those in need.
For some, it’s an opportunity to give back to the community with donations or bequests to not-for-profit organisations. This approach involves funding but relies on the recipient organisation to be efficient in its delivery. Hence, it requires thought about who and how to give the money away, an engagement strategy, legal structures, compliance, performance monitoring and record keeping.
This compares hands-on approaches that target social issues and environmental problems which involve establishment of a private enterprise to focus on helping solve specific problems. This is becoming an increasingly popular way of tackling many issues governments find hard to fund or just can’t respond to efficiently. This holistic approach involves funding, training, development, commercialisation and ongoing delivery. It means harnessing greater resources, and more effort, but is much more targeted and allows more control over the process.
While both forms of philanthropy have positive community impacts which are admirable and effective, there is a range of specific considerations and challenges to be addressed to maximise the intended social impact.
Determining your philanthropic role and objective
There is a lot of preparatory work to be done, much of it is necessarily self-reflective to help in determining the right approach.
Here are some common questions our Family Office team at William Buck work through with clients:
- What problem are you trying to solve?
- Is this a family or personal legacy?
- How much is enough?
- How can you ensure your resources will be used wisely?
- How can you engage the next generation in your family?
- Who should you partner with and why?
- How do you make the greatest impact?
William Buck’s Family Office philanthropic service offers an array of tailored solutions that bring together the right people, processes and structures to maximise your chosen social footprint.
Reducing the obstacles to giving
In taking the traditional approach, deciding to embark on a formal giving program is a significant decision.
The array of giving options, coupled with growing administrative and compliance hurdles can present many challenges.
Identifying and connecting with the charities and causes that align with your values and interests can be an overwhelming task if you go it alone.
Working with a Family Office can streamline the process through the provision of strategic advice and compliance requirements to liaising with third party specialists including lawyers and accountants to establish legal/tax structures.
A Family Office can also act as the “gatekeeper” between donors and charities to ensure gifts are being used as intended.
For those wanting to establish and operate social or environmental enterprises, a Family Office can assist in the establishment of the enterprise from the initial business plan to its ongoing performance and reporting, mentoring and skills development, capital raising and growth funding, technology and marketing.
Facilitating supportive and productive family forums to determine philanthropic values and objectives are an important consideration regardless of whether you head down the passive or active model of philanthropy.
William Buck’s Family Office team works closely with high-net-worth individuals and multi-generational families to help them advance their philanthropic goals that effectively deliver their intended impact.