In a recent speech, entitled "On Scholarship and Philanthropy," Georgetown English Professor John Glavin calls out the relationship between scholarship and philanthropy. He cites three particular points of intersection: disinterest, risk, and hope. Prof. Glavin notes, "They are the key markers for scholars and philanthropists alike..."
On DISINTEREST, he explains how both scholars and philanthropists "act out of distinterest...Disinterest not as a lack of interest but as an un-self-regarding commitment to change as the only ground of growth." He points out that the process of learning and true discovery "demands disinterest from both the scholars who think the new, and the philanthropists who support them."
As for RISK, he observes that a philanthropist's love of risk is evident in the willingness to invest often substantial assets on a venture that offers the promise of greatness, but may just as likely not succeed. "The risk every genuine scholar takes when she or he steps into an archive or a lab, venturing all on an educated hunch and a dream that might at any moment dissolve into mere chimera." Indeed, the mark of a great outcome - for both the philanthropist who funds the initiative and the scholar who takes it on - often is measured by the degree of risk associated with the initiative.
Lastly, he addresses the significance of HOPE - and reminds us that the folks who toil as scholars and those who lead lives dedicated to philanthropy are "persons of hope." While so often we hear from so many to live in the moment, the present, the here n' now, Prof. Glavin offers encouragement that those with their focus on the future are the folks who will shape the next great moments. He cites an 1889 address at Georgetown by Martin Morris, who pointed out 120 years ago, "That which springs up in the night can also vanish like an exhalation before the morning sun. Enduring works take long beginnings."
So, if you're a scholar - it's a good time of year to thank a philanthropist who has helped you in the past - or is helping you right now - to teach, foster learning, and discover paths to a better future. If you're a philanthropist - or want to become one - it's a good time of year to make a gift that can make a difference right now and for the future - at your alma mater or wherever you have the strongest desire to leave your mark.
Happy Holiday!
Wednesday, December 9, 2009
Saturday, September 5, 2009
Leadership is like a megaphone...
The connection between philanthropy and leadership may either seem obvious or non-existent, depending on one's perspective. As economist Arthur Brooks (now, president of the American Enterprise Institute) has noted, the most generous philanthropists are everyday folks, not necessarily those who attract headlines and public attention; as a percent of income/assets, those with modest means typically see the need - and opportunity - to make a difference and use what funds they have available in acting philanthropically for the good of their community and society. Not to say the folks with great means don't represent the lion's share of total dollars given in any year by individuals - for that is certainly the case - but, it is to say that there's room at the top for those with the fiscal capacity to make a difference in society to do more. I suppose, there is always room for any of us to do something more than we currently are doing.
Which brings me to leadership and philanthropy - and, the question of the connection between the two.
I've begun this week participating in a unique leadership development program at James Madison University, known as Impact3 - one of 13 from across campus this year to be invited to take this academic year-long journey. There have been 63 individuals over the past six years who have gone before us. It's quite a program. An exploration that is thorough and thoughtful in its strategically structured approach to exploring what leadership means, looks like, and can accomplish - for the participants themselves, on the campus of James Madison University, and in our community/society, generally. That's the '3' of Impact3.
I'm going to chronicle here - to a certain extent - this experience this year because i believe that if one is going to consider all things philanthropic, then leadership likely belongs on the list of things to consider.
For Forrest Gump, he had to wrestle with the idea that 'life is like a box of chocolates.' For me, my task was to consider how 'leadership is like a megaphone.' It was a creative exercise on opening day. A day of introductions for the 13 participants, especially introductions to each other, the program's founding purpose, and its objectives for us this year. Broad strokes with a wide brush for starters; it's a big canvas, to be sure, and there will be time indeed for the fine brushes and the many details. It will be interesting to see what we add to this work - collectively and individually - over the year's time.
And, for me - I believe this experience will provide an interesting vantage to see and explore - and, to witness - the connection between leadership and philanthropy.
Tuesday, July 28, 2009
If you can care and can do something, now is a good time to act.
All the news coming out of Washington, DC these days not only fills the newspapers and the news channels on TV and radio - but in all the news clutter, a message that is getting lost is how much the colleges & universities, charities, churches, and other causes in our lives need the support of folks who care. Economist Arthur Brooks has asked - and answered - the question, "Who Really Cares?" - and, the overwhelming conclusion he discovered in the course of his painstaking research is that the folks who care the most are the folks we all know - and, us. Sure, there are the big-time philanthropists who can make mega-gifts of $50 or $100 million (or more), but there's not a lot of Vanderbilts, Carnegies, Buffetts, and Gates around. In truth, the lion's share of charitable giving comes from folks of modest means - billions of dollars in charitable gifts come from millions of donors every year. And, all the causes we care about are able to help make our lives and society better thanks to this support.
So, right now it's easy to be concerned about a lot of things - many of which are quite beyond our capacity to affect the ultimate outcomes - but, well within our control is the chance - right now - to do something that makes a difference. Whether it's a gift to your alma mater to help with scholarship needs (and, you can be sure that such needs are great at every college & university in the country!), or a pledge at work for United Way, or adding a special gift in the plate at church for a mission trip or the pastor's discretionary fund - whatever it may be, it will be greatly appreciated.
I suppose it comes down to this: If you care, this is a terrific time to act on your caring nature. Not only will the beneficiary of your generosity be appreciative, but you'll be glad you did it, too.
Wednesday, July 1, 2009
Hmmmm.... Michael Jackson's WIll
Well, it seems the world is curious about all things Michael Jackson, and where else better than a blog on all things having to do with financial & estate planning to offer you, dear readers, a link to MJ's LAST WILL & TESTAMENT.
So, here it is -
Monday, May 11, 2009
Not a good time for a charitable gift? Okay, how about a loan?
Hmmm, a loan... 'You want me to make a loan to my alma mater (or other favorite charity)?'
YES!
Okay, so it goes by another name - but that's the idea.
Here's how it works:
You want to do something for your alma mater, say - and, something that can really make a difference. BUT, you have a family to worry about - children or grandchildren.... their college educations, their first homes, their first business venture's capital. You have some money available right now, sure - BUT, they will need it in 15 or 20 years. If you give it away now, you'll have nothing for them later.
Ah, that's the dilemma.
Here's the solution:
Two simple steps - First, you put the assets you know you want your children (or grandchildren) to have in 15 or 20 years (or however many years you wish) into a trust - so that the assets are safe and secure - and, will be there for them when they need it. And, at the same time, you name your alma mater (or other favorite charity) to receive an annual gift from the earnings derived each year from the assets in this trust - a special gift each and every year until the trust is scheduled to terminate so that the assets go to your children (or grandchildren).
These annual distributions from the trust to your alma mater can make a big impact.
Plus, of the assets in the trust appreciate at a rate higher than the annual payout for the charitable gifts, then your children (or grandchildren) will end up with MORE at the end of the trust than you put into the trust initially - and, whatever the amount - they will receive it free of taxation, if you design the plan well.
AND, you'll enjoy a few serious tax-wise benefits from this plan.
Hard to create? No, actually it can be quite a simple thing to do.
Do you have to be a Vanderbilt or a Carnegie for this to make a difference? Not at all!
It just may be the thing that can add great value - in your life, for your family - and, for your alma mater (or other favorite charity).
PS TO ENTREPRENEURS - The kind of arrangement described above can be a creative strategy for conveying a privately held business to the family's next generation. This trust - which is called a Charitable Lead Trust - and a Family Limited Partnership - can offer - when structured strategically - an effective way to achieve valuable family and philanthropic objectives. Something worth considering.
Friday, April 17, 2009
Living Endowments - A Dandy Little Two-Step That Makes a Big Impact
The financial markets seem to be moving in a good direction recently - maybe a good sign that the economists who anticipated something of a recovery beginning in the second quarter of 2009 were on the right track.
But, portfolios are still down significantly compared with a year ago - your portfolios and those of the colleges, charities, and churches you care about. While the need for philanthropic action is great, financial resources remain quite limited for many folks.
Is there something creative you can do right now to make a difference?
In fact, there is something very creative you can do now - that will have a big impact both now and later.
Say you have the desire to create an endowment - a legacy gift - that will last forever, perhaps to provide scholarships at your alma mater. Creating an endowment may be beyond your reach right now. In fact, it may not be something you can do until much later - perhaps not until your executor is administering the Will you leave to direct the distribution of your estate.
The truth is that a bequest is the only chance most folks have to make a large gift.
But, with a relatively small annual gift, you can give your alma mater (or other favorite charity) the equivalent of what it would receive as income from a scholarship endowment. That is, you can bring to life your ultimate bequest right now - and, you can do so with an annual gift you likely can afford to make.
Then, at the time of your death - when the bequest you put into your Will now finally is made available - the gifts you've been making each year will be covered by the income derived from the endowment funded by your bequest.
This little two-step is a creative way to start having an impact now AND ensuring that you will be making a difference for generations to come.
How much will it take to make this happen?
Let's say you want to create a scholarship of $2,000 every year for students at your alma mater. That would require an endowment of $50,000.
So, you could provide for a bequest of $50,000 in your Will to create an endowment. If you already have a Will, a simple Codicil can be used to add this gift to the terms of your Will. Then, you can plan to make annual gifts of $2,000 to support the awarding of the scholarship each year.
The added advantage of this plan: you'll likely get to meet the students who benefit from your generosity. If you just made the bequest and did nothing more than that, you'd never meet the students whose lives you touch.
There are great needs for people to do what they can to help. If you can make even small annual gifts and arrange for a large gift in your estate, you would be a philanthropic hero.
Got a question, just use a comment to let me know.
But, portfolios are still down significantly compared with a year ago - your portfolios and those of the colleges, charities, and churches you care about. While the need for philanthropic action is great, financial resources remain quite limited for many folks.
Is there something creative you can do right now to make a difference?
In fact, there is something very creative you can do now - that will have a big impact both now and later.
Say you have the desire to create an endowment - a legacy gift - that will last forever, perhaps to provide scholarships at your alma mater. Creating an endowment may be beyond your reach right now. In fact, it may not be something you can do until much later - perhaps not until your executor is administering the Will you leave to direct the distribution of your estate.
The truth is that a bequest is the only chance most folks have to make a large gift.
But, with a relatively small annual gift, you can give your alma mater (or other favorite charity) the equivalent of what it would receive as income from a scholarship endowment. That is, you can bring to life your ultimate bequest right now - and, you can do so with an annual gift you likely can afford to make.
Then, at the time of your death - when the bequest you put into your Will now finally is made available - the gifts you've been making each year will be covered by the income derived from the endowment funded by your bequest.
This little two-step is a creative way to start having an impact now AND ensuring that you will be making a difference for generations to come.
How much will it take to make this happen?
Let's say you want to create a scholarship of $2,000 every year for students at your alma mater. That would require an endowment of $50,000.
So, you could provide for a bequest of $50,000 in your Will to create an endowment. If you already have a Will, a simple Codicil can be used to add this gift to the terms of your Will. Then, you can plan to make annual gifts of $2,000 to support the awarding of the scholarship each year.
The added advantage of this plan: you'll likely get to meet the students who benefit from your generosity. If you just made the bequest and did nothing more than that, you'd never meet the students whose lives you touch.
There are great needs for people to do what they can to help. If you can make even small annual gifts and arrange for a large gift in your estate, you would be a philanthropic hero.
Got a question, just use a comment to let me know.
Friday, January 30, 2009
An Ideal Gift Plan for Uncertain Economic Times - A Charitable Gift Annuity -
Like the thermometer outside, the financial markets seem to be dropping lower than anyone might have predicted just a few months ago, causing lots of concern about the best ways to preserve assets and income sources.
This brings me to the topic of an ideal gift plan for uncertain economic times. I often talk and write about the benefits of Charitable Gift Annuities as a terrific way to supplement your income and help make a difference at your alma mater or other favorite charity. A Charitable Gift Annuity offers, essentially, guaranteed income at a fixed rate of return that will never change in your lifetime – a welcome thing right now more than ever.
Rates of return for Charitable Gift Annuities are changing this spring - dropping. As much as 1.0 percent. Current economic conditions are affecting the capacity of colleges & universities - and, othe charities - to continue offering the same rates that have been in effect for the past few years.
BUT, even at the slightly lower rates, a Charitable Gift Annuity still offers donors an ideal life income gift plan that just may be too good to pass up.
Folks in their 70s and 80s - and older - find Charitable Gift Annuities to be special ways to add a steady income stream for life - that leads later to a legacy gift for their alma mater (or other favorite charity). Young folks (under 50) can create a Charitable Gift Annuity for the benefit of parents and grandparents - and lock in a fixed rate income source for the rest of their lives.
Rates in the 6.5 - 9.5 percent range are available, and the precise level is determined by the age of the donor - or the beneficiary, as the case may be.
Perhaps the most special thing about a Charitable Gift Annuity is how it benefits both you and your alma mater (or other favorite charity). In creating a Charitable Gift Annuity you can choose to create a scholarship, fund student-faculty research projects, or help student-athletes. Actually, your gift can help you champion just about any particular purpose you may wish to support. Best of all, this gift is a chance to transform your under-performing investments (e.g., stocks, mutual funds, real estate) into a higher yield source of income for the rest of your life, with the added bonus of receiving a federal income tax deduction based on the value of the assets you use. In addition, part of the annual income you receive will be tax-free for a few years, based on your age.
There's more information available on the details of creating a Charitable Gift Annuity - but the key thing is that there's not a lot of paperwork and the gift can be set up relatively quickly. If you'd like more information on Charitable Gift Annuities, just let me know. If you have a question, ask here and i'll answer in a post right away.
This brings me to the topic of an ideal gift plan for uncertain economic times. I often talk and write about the benefits of Charitable Gift Annuities as a terrific way to supplement your income and help make a difference at your alma mater or other favorite charity. A Charitable Gift Annuity offers, essentially, guaranteed income at a fixed rate of return that will never change in your lifetime – a welcome thing right now more than ever.
Rates of return for Charitable Gift Annuities are changing this spring - dropping. As much as 1.0 percent. Current economic conditions are affecting the capacity of colleges & universities - and, othe charities - to continue offering the same rates that have been in effect for the past few years.
BUT, even at the slightly lower rates, a Charitable Gift Annuity still offers donors an ideal life income gift plan that just may be too good to pass up.
Folks in their 70s and 80s - and older - find Charitable Gift Annuities to be special ways to add a steady income stream for life - that leads later to a legacy gift for their alma mater (or other favorite charity). Young folks (under 50) can create a Charitable Gift Annuity for the benefit of parents and grandparents - and lock in a fixed rate income source for the rest of their lives.
Rates in the 6.5 - 9.5 percent range are available, and the precise level is determined by the age of the donor - or the beneficiary, as the case may be.
Perhaps the most special thing about a Charitable Gift Annuity is how it benefits both you and your alma mater (or other favorite charity). In creating a Charitable Gift Annuity you can choose to create a scholarship, fund student-faculty research projects, or help student-athletes. Actually, your gift can help you champion just about any particular purpose you may wish to support. Best of all, this gift is a chance to transform your under-performing investments (e.g., stocks, mutual funds, real estate) into a higher yield source of income for the rest of your life, with the added bonus of receiving a federal income tax deduction based on the value of the assets you use. In addition, part of the annual income you receive will be tax-free for a few years, based on your age.
There's more information available on the details of creating a Charitable Gift Annuity - but the key thing is that there's not a lot of paperwork and the gift can be set up relatively quickly. If you'd like more information on Charitable Gift Annuities, just let me know. If you have a question, ask here and i'll answer in a post right away.
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