March 20 - 22, 2017 The Peabody Memphiswww.adnetconference.org

March 20 - 22, 2017 The Peabody Memphis

www.adnetconference.org

#NCFPCF

March 2017

Adnet Session

Navigating Family

Philanthropy Trends#NCFPCF

Tony Macklin, CAP®

Program

Manager

2

Kylie MusolfProgram

Associate

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1. Trends and Challenges

2. Case Study

3. Tools/Tips for Planning Ahead

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Identity ≠ Geography

Community ≠ Geography

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• 80% of older foundations (pre-1970) have a

geographic-based mission

• 60% of newer foundations (post-1990) have

an issue-based mission

• 33% of all family foundations have both

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Informed Americans who don’t trust nonprofits to “do what is right”1 in 3General public less trusting

Trust declined 2008-2016

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Ph

ilan

thro

pic

Act

ion In

vest

Impact investing

Community investment

Crowdfunding

Impact investing & shareholder activism

Venture funds, B-Corps

Some microfinance

Peer lending platforms

Bu

y

Tuition & healthcare

Products & tickets

Nonprofit social enterprises

Crowdfunding

Cause marketing

Responsible purchasing

Sustainable supply chains

Farm and artist CSAs

Fair trade purchases

Sharing economy

Giv

e

Charities, foundations, DAFs, etc.

Other nonprofits

Gov’t agencies

Crowdfunding

Crowdsourcing & co-production, co-working

Remittances

Candidates & bundlers

Crowdfunding, prizes, grassroots $

Nonprofits Businesses Individuals

Recipient of Action

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• 43% expect to add one or more next gen family members to the board

• 28% plan to make fewer but larger grants

• 25% expect a change in leadership

• 12% will expand their mission investing

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Fdns created since 1990:

• 78% have less than $10 million in assets

• <3% have assets of more than $200 million

• 60% expect growth in assets in the next 4 years

• NOTE: 40% of family foundations use a DAF

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DESIRES

Flexible, short-term, task-based work

Personal fulfillment & skill-building over obligation

Choice & customization

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Decades ago, donors started foundations in estate plans

2 in 3 family fdns now have founder at the table

Next gen issues named as largest challenges

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Hyperagency – the inclination and ability

“to be producers rather than simply

supporters of philanthropic projects.” –

Paul Schervish

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Trend…

How we perceive trust, togetherness, community

Impacts the Family’s…

Spiritual and social capital

How we work, volunteer, and engage together

How we give, buy, and invest

Human and intellectual capital

Financial capital

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G1: Bob & Barb

(Silent Generation)

G2: Jim, Jenny, Jason

(Boomers)

G3: 7 Grandchildren

(Gen X & Y)

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$25M Private Fdn

G1, G2, Atty on Board

50% to Star City

50% G2 Discretionary

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How do present choices impact future success?

Dilemma #1Engaging grandchildren (Gen X & Y) in the foundation

Dilemma #2Balancing shared commitment & values with individual interests

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Family/

Personal

Philan-thropic

Emotion-based

Continuity & harmony

Loyalty & belonging

Task-based

Growth & change

Competence, commitment

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Skills

Knowledge

Relationships

Identity

Reputation

Gifts/Grants

SelfDAF or

Foundation

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Principles&/or

Purpose

Policies

Practices

Vision, mission, values

Governance, participation,

decision-making

Operations, meetings, training

Patricia M. Angus, Esq.

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Principles &/or

Purpose

Policies

Practices

Founder legacy statements

Oral/video histories

Purposeful trusts, ethical wills

Values exercises

Family volunteering

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Principles &/or

Purpose

Policies

Practices

Decision-making processes

Conflict of interest

Board terms & eligibility

Participation rules (obligation vs. invitation?)

Termination/transition

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Philanthropy Practices

Hometown/founder $

Discretionary $

Mission/strategic $

Investments for good

Problem solving, leadership, advocacy

Principles &/or

Purpose

Policies

Practices

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Meetings

• Make time for storytelling and learning

• Can family truly self-facilitate?

Principles &/or

Purpose

Policies

Practices

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Principles &/or

Purpose

Policies

Practices

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Only tool for togetherness

Fighting the last war

Killing fun

Connection to founding

Passive participation

Unprepared advisors

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38

1. Community Foundation-only webinars & topical calls

2. Tailored CF Knowledge Center resources: case studies, sample documents, templates

3. Updated CF readiness assessment tool

4. CF family philanthropy “playbook”

5. NCFP’s monthly webinars, Knowledge Center resources, National Forum, and more for you and your donors

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Free Access Subscriber(staff access)$2,500/Year

Subscriber Pro (staff & donor access)

$4,500/year

~ 100 free Knowledge Center resources

1 webinar/year

(Note: no access to webinars, resources, staff through Regional Associations)

CF Network Services and Products

2000+ Knowledge Center resources + free copies of in-depth Issue Briefs + discount on publications

12 webinars/year (5 lines)

Direct line to NCFP staff for support

All that plus:

Co-branded web portal for your donors

Permission to adapt & reprint materials for external donor services

Enhanced access to NCFP staff

39

First Year Introductory OfferSubscriber Pro at $1,500 ($1,000 for small CFs)!

Filled with advice and resources from the field’s foremost experts

in family philanthropy, Splendid Legacy 2 is a must-own volume for

any family that is looking to build a philanthropic legacy, as well as

for advisors and others interested in understanding this special

philanthropic vehicle.

On sale now at splendidlegacy.org

Copyright © 2017. A portion of this material is excerpted from NCFP

publications and research reports. These slides should not be copied

or distributed without prior permission of NCFP.

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Inspiring Generations of Giving.

41Copyright © 2016 National Center for Family Philanthropy