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Here's the new link to my blog, On Philanthropy / tj sudol:

www.tjsesq.wordpress.com.

 

Please add On Philanthropy to your link list, your blog roll, your weekly list of must-reads. I'm confident you'll find the visits rewarding. I'll be posting thoughts and ideas about philanthropic matters that you can use in your lives and with the organizations you care about.  Thanks for reading.

ted

 

 

Wealth Replacement Strategy

Whether you'd consider yourself someone with a high net worth or a high earner who's not necessarily rich, there could come a time when you'd like to make a special philanthropic gift - but, you hesitate because you also may not want to tap assets you'd like to pass on eventually to your children or grandchildren....

Is there a solution?

You betcha!

With a 'wealth replacement strategy' you could make the philanthropic gift you wish to make -and then use the tax savings derived from the gift to fund the cost of premiums on a life insurance policy acquired by an irrevocable life insurance trust that you would set up concurrently with the gift. This trust would have your intended heirs (children, grandchildren) as the named beneficiaries. At your death, the death benefit from the life insurance would likely be equivalent to the value of the original assets you gave as a philanthropic gift. And, the cost of the insurance premiums likely would be covered by the value of the federal income tax charitable contribution deduction.

This strategy ends up allowing you to benefit BOTH your alma mater (or other favorite charity) AND your family. It's a terrific win-win opportunity. And, it may be just right for you!

Wondering...

So, when donors makes gifts to charitable causes in the Caribbean or in Central America - or, to the University of San Paulo in Brazil, for example, are these folks making philantropic gifts? Just wondering...

Preserving Our Natural Resources - A Unique Opportunity for Philanthropy

Been working on a project recently involving 'stewardship of the natural world' and, can't help but see the unique opportunities available in environmental issues for those who are philanthropically inclined to make a real difference that can last for generations.

We - especially we in America - have long held the belief that our natural resources are limitless - and, our consumption over the years has reflected this mindset. Even as other in the world have begun using restraint, we've been reticent to do. And, our resources in America show the scars of our living large. The truth is that the notion of an "American Way of Life" immutable to the reality that we all share one planet and its resources is quite at odds with the 'Hot Flat & Crowded World' portrayed by Thomas Friedman.

In a letter he wrote in 1787 to his friend, Thomas Jefferson, James Madison pointed out, "Nature has favored our country." and, who wouldn't agree with his assessment. Perhaps, it's time for to honor Mr. Madison's legacy by challenging ourselves to return the favor. Imagine all the people in all our communities across the country embracing the idea of changing behaviors and adopting new - good - habits that can help preserve the resources with which Nature has favored us.

And, as for the role of philanthropy? Well, there are opportunities at your alma mater - with charitable organizations in your community - and through local and state government initiatives for private philanthropic funds to seed new initiatives, support large scale recycling efforts, figure out ways to cut consumption of electricity, reduce water waste, and move about without always using cars and other personal vehicles. It's not just Carlos Santana that believes "This can't go on... We got to change our ways." Indeed, there are ways all of us can take on this work - as donors and as volunteers. It's time. You know, Victor Hugo hit the mark when he said (in French), 'Nothing's more powerful than an idea whose time has come!' And, the time certainly has come to act -to give money, give time, give new habits a try.

'Scholarship & Philanthropy'

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!

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.

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.