1 Your Guide to Personal and Family Philanthropy Inspired Inspired! Created by The Winnipeg Foundation
2 All of us, if we are reasonably comfortable, healthy and safe, owe immense debts to the past. There is no way, of course, to repay the past. We can only pay those debts by making gifts to the future. Jane Jacobs, Canadian author, futurist and urban planning icon
3 The Remarkable Legacy of Everyday Philanthropists Many of the characteristics that make our city and province an extraordinary place to live, work and play are a result of the efforts of generations of everyday philanthropists. The Winnipeg Foundation encourages and supports this spirit of caring and generosity for the benefit of future generations in pursuit of its vision of a Winnipeg where community life flourishes. When you give time or money to a cause, does it speak directly to something you really care about? Do you feel confident that your money or time will make a difference, help improve the world? Do you feel sure it is used wisely? - Inspired Philanthropy, Tracy Gary & Melissa Kohner How do YOU want to make a difference? There is a vast array of worthwhile causes, and many ways to support the ones that are important to you. More and more families are planning philanthropy together as an expression of shared values, to teach children about social responsibility or to continue or establish a family legacy. As your centre for community philanthropy, The Winnipeg Foundation, through its Family Philanthropy Program, offers an educational and consulting service, assisting people from all walks of life as they consider their charitable agenda. The tools, resources and support are offered to everyone in our community; there is no requirement or expectation that participants support The Winnipeg Foundation. This complimentary guide will help you create a flexible philanthropic plan tailored to your own priorities and preferences. Using it to clarify the things that matter most to you, it can help you develop a meaningful and rewarding charitable giving plan that reflects your experiences, traditions, values and hopes. If family members are participating, we recommend each person has a copy of this guide. Please contact The Winnipeg Foundation for additional copies. Inspired 1 Inspiration is the first step to action.
4 2 We hope you are inspired to make a difference! Things to consider as you develop a personal or family giving plan Your motivation for establishing a family giving strategy may include: to pass on philanthropic values and spirit to the next generation, to involve your children and grandchildren in your philanthropy, to enable your children and grandchildren to develop their giving values and discover philanthropy, to establish or continue a personal or family legacy, to find common ground for working together, to benefit the community in a specific way and encourage the next generation to continue with this focus, and, to create a common bond for the family.
5 Philanthropy and you If you have given time and money in the past, what has that experience been and what have you learned from it? Who or what inspired you? Think about your first donation, your most meaningful gift, and your largest gift. What motivates you to give? How do you feel when you give? Inspired 3 What inspires you? If you don t already have an idea of how you would like your gift to make a difference in the community, you may find it helpful to start by asking yourself the following questions to clarify your thoughts. Are you currently involved with any charitable organizations as a donor, volunteer or member? What strengths do you see in your community that you think should receive further support? What challenges in our community do you think need attention? Do you have a vision you would like to help achieve for our community?
6 4 Focus vs. Breadth Whether or not you have a focus depends on your philosophy towards giving and what you wish to achieve. Some families want to spread their giving widely, to touch as many needs as possible. Some families like to give to all organizations that ask and never want to say no. Some families choose to make a large impact in a small area of need. Some families put all their support behind the cause they feel most deeply about. Sometimes people select an area of interest or priority before making gifts. Sometimes after years of giving, they notice a pattern, discovering themes that prompt them to formalize priority areas. Likewise, a priority may change; it can narrow and broaden as a person s interests change. For example, joining an organization or receiving its services can immediately impact giving patterns. A focus can help a family take action, as opportunities to make a difference can be overwhelming. Do you wish to have a particular focus for your giving? Or, are you more interested in supporting a wide range of charities? You may wish to have a broad area of interest. Examples are: community services, health and well-being, education, arts and culture, environment, or, faith-based programs. You may wish to have a more focused field of interest. Examples are: children s health, disadvantaged youth, family violence, music, theatre or museums, student support (bursaries or scholarships), wilderness preservation, or, animal welfare. You may wish to have an even more detailed and specific intent. Examples are: immigrant settlement programs, mental health or health promotion programs, a particular high school, university or college program, a particular local or regional environmental program, or, agencies or programs of personal interest. List organizations you have supported in the last 2-3 years and note why: Today, my focus is:
7 Engaging family members across generations Inspired The age of your children is a critical factor. Keep in mind that, as your children mature, their interest and involvement in philanthropy and your family s giving plan may change. You may wish to take advantage of one of the three ways the Foundation offers support through the Family Philanthropy Program. Or, you can create your own process using resources available in the Family Philanthropy Resource Centre. 5 Scenario 1: Engaging children ages 6-13 Consider helping younger family members to learn about and participate in your philanthropic activities. The Foundation offers one-hour group activities for children that help them learn about their community, who might need help, and why. Scenario 2: Engaging teenagers or young adults Think of ways to involve young people in your family in your philanthropic activities. The Foundation offers interactive seminars on various topics that raise awareness of trends and issues, and provide hands-on practice to prepare this age group to participate more fully in family discussions. Participants have opportunities to explore the community and their interests through site visits, or as volunteers, enabling them to bring the knowledge they gain to family discussions. Scenario 3: Engaging adult children and grandchildren The complexities of this arrangement depend on the ages and stages of family members. Meaningful involvement of adult children may rest on finding a balance of financial investment, leadership and decision-making so each person s voice is respected. The Foundation s Director of Family Philanthropy is available to facilitate such family discussions.
8 6 Recognition How you feel about public recognition is a personal matter. We are all motivated by different factors. Over time, or in different giving situations, donors may find they change how they think about recognition. Children often have different recognition needs and considerations than adults. As you make your giving or granting decisions, you might consider the kind of profile you want to have (if any) with the charities you support. As a family, you may determine on your preferences as you begin; you may change them at any time in the future. Here are a few motivations at either end of the recognition continuum. Some people prefer to remain anonymous for a variety of reasons, for example: to cast the spotlight on the community rather than themselves, to simplify life and practice humility, or, to avoid standing out as different from their peers. Others may wish to be more open about their giving, for example: to celebrate their family name in the community, to demonstrate commitment, or leverage other funds, or, to challenge or inspire others, set an example, or lead the way. My perspective about recognition: My perspective on anonymity: My current thoughts on the matter:
9 Endowment building as part of your plan The most common giving practice is to make direct gifts to a charity over the course of a year. Manitobans are very generous. According to Statistics Canada, more people in this province report charitable gifts in their income tax returns than anywhere else in the country. Among Canadians, Manitobans donate the highest percentage of their income to charity. Some people include building a family endowment fund in their philanthropic plan. This is like having your own family foundation except that your family fund is pooled with hundreds of others for better investment returns and more efficient administration. Donations to a family endowment fund accumulate over time and, even though the income is distributed every year as grants, your gifts establish a permanent legacy in your family name. Inspired 7 Has your family ever discussed the creation of a family fund? What questions come to mind when you think about this possibility?
10 Discovering Causes to Support 8 If this is your personal giving plan: If you are the only person making these decisions, the process can be as simple as you wish. The Winnipeg Foundation can bring to your attention proposals from the community in your area(s) of interest. As a granting organization with more than 87 years experience, the Foundation has a wealth of knowledge about opportunities and needs across our community. If other family members are participating: How would you like to bring project ideas to the table for consideration? As a starting point, have each person list charities they have supported in the past 2-3 years and identify their areas of interest as you have done above. Sharing this basic information may reveal both common interests and, perhaps, some surprises. Other options you may consider: Each member can choose projects they want the family to consider. This often requires research by individual family members and making a presentation to the rest of the group to promote their causes. This can be a great way for your family to learn more about the community. The Winnipeg Foundation can identify proposals matching your family s areas of interest. The Winnipeg Foundation can also arrange site visits for you and your family to get more acquainted with charities you care about. The cause(s) I would like to support (or wish my family to consider) are: Who is in charge? How will decisions be made? It is important to establish your decision-making ground rules. Will the chair of the family group change or rotate over time? Are all votes equal? Are the votes of younger family members given more or less weight? Does anyone have veto power? Clarifying the decision-making process in advance is most helpful to avoid conflict and align expectations with reality. Remember, participation in decision-making encourages engagement! You can change your decision-making model over time as all members of the family gain more experience in giving. You may have preliminary thoughts about what decision-making model best suits your family. Some options are: 1) majority vote, 2) consensus (all must agree), 3) division of the granting pot with each person responsible to choose a project for their portion, or, 4) a combination (tip: using 2 and 3 has proven to be a satisfying experience for many families). The decision-making model I would prefer for our family is:
11 Giving or Granting Frequency and timing: How often does your family wish to make grant recommendation decisions? It is easy to picture a family saving its most important decisions for one point in the year for example: Thanksgiving. The amount of money you want to give collectively or individually, or the geographic distance between family members, are factors that could influence your schedule. Organization of discussion: Should there be an agenda of topics to be discussed or is a more informal process best suited to your family situation? For example, in the case of a family fund at The Winnipeg Foundation, staff work with family members to set an agenda and take minutes to document the grant decisions. Is it best for your family to meet in person? Where? Inspired 9 Communicating: How do you wish to communicate between meetings about your grant-making activities? If members of a family live in different cities, electronic communication may work best. If several generations are involved, some may be less comfortable with electronic communication. Who will keep records of family meetings and decisions? How will this information be shared and how often? What are your expectations of beneficiary organizations as to acknowledgement of your financial support and reports about its impact? My thoughts on meeting frequency: My thoughts on organization of discussion: My thoughts on communicating: My thoughts on acknowledgement and reporting:
12 10 Inspiration is the first step to action.
13 Inspired To give away money is an easy matter and in any man s power. But to decide to whom to give it, and how large, and when, and for what purpose and how, is neither in every man s power nor an easy matter. Our Director of Family Philanthropy offers other tools, resources and services. A few of these are: A Resource Centre, including a library collection and other materials, Thinking About Possibilities an informal conversation over coffee, Creating Your Plan two family discussions, The Site Visit we arrange a visit to your favourite charity, You and Your Advisor a consultation aimed at clarifying goals, and, The Winnipeg Foundation 101 a private chance to ask your questions. We are here to help. Please contact: Leslie Weir, B.A., M.A., ACFRE Director of Family Philanthropy The Winnipeg Foundation ext 246 Or - Aristotle ( B.C.), Greek philosopher Inquiries and conversations are in confidence and without obligation. 11
14 12 Notes
15 Notes Inspired 13
16 nspired Connecting people who care with causes that matter The Family Philanthropy Program offers everyday philanthropists donor-centred information that promotes philanthropy for the entire community. The program encourages all individuals and families to think about philanthropy and thoughtfully support, as they are able, causes they care most about. The program helps individuals and families develop customized philanthropic plans to benefit any organization or cause. Philanthropy draws on the passions and concerns of each individual or family, and provides an opportunity for anyone to learn, grow and have a real impact on their community. The popularity of donor-advised funds is an indication that many families are planning their philanthropy together as: an expression of shared values, a way of teaching children about social responsibility, or a way to continue or establish a family legacy. There are many ways for individuals and families to give to causes that are important to them, including: establishing a private foundation, or creating a fund at a registered charity, a commercial giving foundation, or at a community foundation. The Winnipeg Foundation offers several types of funds. These may be a helpful reference as you (or your family) consider your options. If you are considering other service providers, ask about the choices they offer. Community Building Fund provides donors with the most flexibility for their contributions. Field of Interest Funds are established by donors who wish to support one or more specific causes. Donor Advised Funds enable donors to be actively involved in recommending recipient charitable organizations. Designated Funds allow donors to support one or more specific charitable organizations in perpetuity. Scholarship Funds are established in the name of a donor, or in honour of someone else, to help individuals receive education and training they might not otherwise be able to access. Memorial or Tribute Gifts allow friends and family to donate in memory, or in honour, of a loved one. These gifts become part of the Community Building Fund unless directed to a specific named fund. We are here to help. Please contact: The Winnipeg Foundation Leslie Weir, B.A., M.A., ACFRE Director of Family Philanthropy ext 246 Or Inquiries and conversations are in confidence and without obligation.