While people can volunteer to donate old or unused possessions, as well as to advocate for causes via social media, philanthropy is a money game for most individuals and companies, as well as for the nonprofits they hope to support. People have increasingly begun to view philanthropy as a critical part of an individual or corporation’s financial portfolio. While it can be easy for wealth managers and investment advisors to see philanthropic gifts as a loss to be minimized, it is becoming more common for financial professionals to see philanthropy as part of the management process.
Marrying philanthropic goals with investment goals can be easy for most individual and institutional funds alike. By allocating philanthropic gifts as a percentage of assets rather than income, it becomes possible to create sustainable plans for both future asset stability and philanthropic pursuits. This paradigm further aids nonprofit organizations. By positioning themselves as “investments” rather than as “charities,” they are better able to engage their donors as a part of the charitable mission. The philanthropy-as-investment model also serves to encourage greater corporate giving, as these companies have increasingly come to realize that supporting their community results in a better and more profitable consumer base.
Marrying philanthropic goals with investment goals can be easy for most individual and institutional funds alike. By allocating philanthropic gifts as a percentage of assets rather than income, it becomes possible to create sustainable plans for both future asset stability and philanthropic pursuits. This paradigm further aids nonprofit organizations. By positioning themselves as “investments” rather than as “charities,” they are better able to engage their donors as a part of the charitable mission. The philanthropy-as-investment model also serves to encourage greater corporate giving, as these companies have increasingly come to realize that supporting their community results in a better and more profitable consumer base.