FA Magazine May 2023 - Page 28

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Request your FREE subscription at www . fa-mag . com thropists in recent years , MacKenzie Scott , often makes large donations in this way to give nonprofits the widest latitude in fulfilling their mission . This is notably different from the specific instructions and conditions that often accompany the largest grants , restrictions meant to ensure that gifted funds are used in the way the donor intended .
The trust-based approach stands out in other ways as well :
• Donors can provide multi-year funding commitments rather than onetime or short-term grants . These commitments give grantee organizations the flexibility to pursue their own goals and strategies , rather than being tied to specific projects or metrics .
Now is the time to engage with the next generation of givers — both philosophically and practically .
• Donors can also offer capacity-building support , such as training and technical assistance , to help charitable organizations strengthen their operations and governance .
• The approach can entail philanthropists working directly with communities and their members so they have a role in selecting and prioritizing grant recipients and making key decisions . There are other forms of community engagement as well , such as listening sessions , community forums and surveys .
• And the approach facilitates collaboration and partnership among organizations , rather than fostering competition . In funding collaborative efforts , coalitions or networks of multiple organizations can work collectively toward a common goal or issue .
How Can Advisors Help ?
This type of philanthropy is likely to resonate with younger generations , who like innovative and unconventional approaches and who value learning and improvement rather than a rigid adherence to predetermined outcomes . They likely see it as a way to pursue more impactful and sustainable change .
Financial advisors with client families can play an important role in helping younger philanthropists pursue this type of giving by getting all the family stakeholders on the same page . This starts with early education and helping families members at all age levels understand the concept , alongside the importance of building trust , fostering collaboration and promoting transparency .
It also means listening — understanding younger family members ’ motivations , aspirations and concerns and helping them align their giving with their personal values and long-term goals . By understanding their unique perspectives and priorities , financial advisors can guide next-gen donors in developing a trust-based approach that is meaningful for them and effective .
Moreover , advisors can help younger donors engage with the communities they aim to serve by facilitating opportunities for them to listen to and learn from community members . For instance , donors can conduct site visits to nonprofit organizations , attend local events and participate in stakeholder engagement processes . Active involvement within a community can help next-gen donors gain a deeper understanding of a community ’ s needs and perspectives , and foster grassroots relationships with key collaborators and allies .
Lastly , advisors can also build networks among younger donors who are interested in similar causes , promoting collective action and helping them learn from one another ’ s experiences .
Now is the time to engage with the next generation of givers — both philosophically and practically . By taking a proactive and holistic approach , financial advisors can help young donors create philanthropic strategies that better align with their values and goals .
HANNAH SHAW GROVE is chief marketing officer at Foundation Source , the nation ’ s largest provider of support services to private and family foundations .