The Key is Passion
What is the first thing that comes to mind when you think of the idea of “charity?” Is it Bill Gates and the Gates Foundation? (“Rich guy uses his billions for charity”) Or perhaps it’s the other Bill and the Clinton Foundation? (“Charismatic guy uses his charm to raise millions”) Maybe your family has its own private foundation or supports a donor advised fund. If so, congratulations – and, I might add on behalf of society at large, a hearty thank you! If you fall into this category, you are pretty far along the sophistication spectrum of philanthropic giving. I certainly hope that your investment is built on a passion for effecting positive change. If not, your foundation may just be built on a foundation of sand.
Let’s consider that for a moment. Whether you control a family foundation or just have a spare couple of bucks in your pocket to give to charity – how do you decide which challenge to pursue? There are so many problems in the world and so many good (and not so good) causes offering to work to solve those problems. How do you really decide?
Back to my original point – what is your passion for effecting positive change in the world? That question is so key because, man, if you don’t have one, then philanthropy is probably not for you!
Now, admittedly, this is a conversation that most financial advisors shy away from. The typical accountant, lawyer, or wealth manager would rather talk about anything but passion because it sounds a little too….new age. Or, they may refer to charity in the abstract: “A testamentary charitable remainder trust enables you to leave a stream of income to your beneficiary for a period of time with the remainder to be paid out to the “fill in the blank” charity at termination of the trust….” But actually talk with you about which causes or causes should fill that blank? Talk to you about that which truly floats your boat?? I think not. It might be seen as bit presumptuous. It wouldn’t fit in the model of the chargeable hour. It might even be perceived as being a little judgmental.
Balderdash! The conversation has to start and end with your passion for giving, your passion for making a difference. It does not matter how many cool financial and tax planning techniques exist for the budding proto-philanthropist — they mean nothing if they are not framed in the context of philanthropic passion. Honestly, would anyone arrange to give away a significant amount of their income or wealth just to save taxes?
At the very least, every donor should want to make a difference; extrapolated to its logical conclusion, the thoughtful donor is just plain bold enough to hope/expect to change the world. Is a little passion too much to ask?
