{"id":225,"date":"2013-11-01T16:02:37","date_gmt":"2013-11-01T20:02:37","guid":{"rendered":"http:\/\/www.stewardshipworks.org\/blog\/?p=225"},"modified":"2013-11-01T16:02:37","modified_gmt":"2013-11-01T20:02:37","slug":"case-for-philanthroinvesting","status":"publish","type":"post","link":"https:\/\/www.stewardshipworks.org\/blog\/?p=225","title":{"rendered":"Case for Philanthroinvesting"},"content":{"rendered":"

\"touchdown\"It\u2019s football season. The season when, after investing over two hours in front of the TV, we go crazy when one team makes some remarkable adjustment to its game plan and pulls out a win in the last minutes of the 4th quarter. Depending on whether our favored team won or lost, we collectively scratch our heads and wonder why the team waited to the last minute to make a difference!<\/p>\n

Nonprofit financial managers also scratch their heads wondering why so many donors wait to the last minute, aka, end of tax year, to write that check.<\/p>\n

If you\u2019ve seen our website\u2019s \u201cIf you believe in\u2026\u201d<\/em> slideshow<\/a>, you may have noticed that the final slide is labeled \u201c\u2026transformational giving\u201d. The image is of a young woman on the edge of a lake, disturbing the water just enough to create outward ripples. It is a symbol for transformational giving \u2013 the kind of giving that not only transforms the giver in a spiritual way, but that also transforms the nonprofit receiving the gift because the gift itself is large enough or designed well enough to grow and sustain the charity\u2019s mission over time.<\/p>\n

An excellent example of transformational giving comes from Paul T. Penley, the director of research for philanthropic advisory firm Excellence in Giving<\/a>. Penley calls it \u201cphilanthroinvestments<\/em> – real opportunities for philanthropists to realize returns and then relinquish the benefits of those returns to charitable organizations they trust.\u201d<\/p>\n

Penley discusses the concept in the article Smart Gifts Keep on Giving<\/em> \u2013 how a philanthropic investment of $600,000 is on track to more than quadruple, generating $2.5 million revenue from the original gift.<\/p>\n

This investment is neither an impact investment (a socially responsible form of investing that creates measurable social or environmental impact alongside a financial return for the investor) because the financial returns do not come back to the investor; nor is it a normal grant or annual cash donation needed every year to run the same programs. The grant is, however, one that invests in a revenue-generating, job-creating project so that the organization doesn\u2019t need additional grants to run its programs.<\/p>\n

This model will not work for all charities (for example, it won\u2019t work for disaster relief), but for most, it enables a gift to keep on giving and attracts high net worth charitable investors.<\/p>\n

If this type of long term thinking fascinates you, inspires you, challenges you\u2026 or if you are a major gift or development officer, or you know someone who is, we\u2019d like to lead the conversation about philanthroinvesting<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s football season. The season when, after investing over two hours in front of the TV, we go crazy when one team makes some remarkable adjustment to its game plan and pulls out a win in the last minutes of the 4th quarter. Depending on whether our favored team won or lost, we collectively scratch […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,3,4],"tags":[6,58,5,13,57,59,56],"class_list":["post-225","post","type-post","status-publish","format-standard","hentry","category-giving","category-stewardship","category-the-foundation","tag-charitable-giving","tag-excellence-in-giving","tag-financial-stewardship","tag-legacy-planning","tag-paul-t-penley","tag-philanthroinvestment","tag-transformational-giving"],"_links":{"self":[{"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=225"}],"version-history":[{"count":1,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/225\/revisions"}],"predecessor-version":[{"id":227,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/225\/revisions\/227"}],"wp:attachment":[{"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stewardshipworks.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}