When You Can't Give It Away

You read it right.

This can't be same sector that is always bemoaning its impoverished state, I mused.

But it is.

The rock-bottom donor renewal rate comes to mind—but that's a subject for a different time.

The backup plan for more and more philanthropists, according to Alan, is fast becoming the donor-advised fund.

The "donor-advised fund" is a giving vehicle whereby the donor establishes a fund with general giving parameters. The donor receives the tax benefit by releasing control into the hands of a qualified third party, which then dispenses the funds to charitable organizations using the "advise" the donor has set at inception.

These giving instruments have been around a long time—to wit, the longstanding nonprofit community foundations and community chests.

What's relatively new is the entrance of commercial funds to this market. And it's exploding. One such organization is now the third-largest charity in the United States by assets received annually.

My conversation with Alan brought to mind the many I have had in recent years with nonprofit leaders who are not at all keen with the dramatic rise in donor-advised funds.

For Alan, and many of the philanthropists he represents, it's a no-brainer. You want to be charitable but can't find a willing partner? You do the next best thing.

It's certainly not what many would prefer, but it's one way to realize your charitable vision.

I thanked Alan for reaching out. I offered more empathy than counsel.

My counsel goes to the worthy nonprofits, which are seeking to transform lives.

Engage the would-be investors that reach out to you. Return phone calls. Get into serious dialogue. Listen. You may be surprised what you hear.

Principle 1 of The Eight Principles^TM is Donors are the Drivers®. Donors drive philanthropy through their values and visions.