Day 19
Alex Savin
Expert Tip: Try Something New Next Year
One of the hallmarks of effective philanthropy is trying new things. In order to maximize your impact, you’ll need to have an open mind when it comes to new strategies, tools, and ideas. While not everything you try is going to be a success, you’ll have an opportunity to learn from failures and change course if needed.
Today, we’re challenging you to choose something new to try in 2023. Here are some ideas to get you started:
Try “Hands-Dirty” Philanthropy
Use your connections, capabilities and capital to solve a problem. A family foundation can conduct its own charitable programs directly, instead of through a public charity, without setting up a separate nonprofit or converting to an operating foundation. Direct charitable activities (DCAs) are programs that permit foundations to directly fund and carry out their own projects. This brand of “hands-dirty” philanthropy suits those who want to contribute both financial and human capital to their good works. For these donors, it’s not about finding charities worthy of donations; it’s about solving a problem using their connections, capabilities, and capital.
Grants Around the Globe
There are many ways to give grants to overseas charities. Making grants outside the United States holds great appeal for donors with family or ties to other nations and philanthropic goals that cross political borders. Private foundations may grant directly to overseas charitable organizations, even when there is no IRS=recognized 501(c)(3) entity to serve as an intermediary. For example, some foreign charities are automatically recognized by the IRS because of their special status (e.g. the United Nations); others have set up a U.S.-based “friends of” organization that is a recognized 501(c)(3) public charity that may accept funds on their behalf. But when there’s no easy route to channel funds to a favorite organization overseas, foundations may still make a grant by providing additional oversight, either by finding the organization to be “equivalent” to a U.S. public charity, or by exercising “expenditure responsibility.” These philanthropic alternatives have enabled our clients to support an after-school boxing club in England, a university in Singapore, a microfinance organization in Peru, and a home for AIDS orphans in east Africa, among many others.
Pass Out Prizes & Awards
One effective method of driving innovation and creating buzz around one’s field of interest is to offer a prize. Traditionally, awards were given as a way of rewarding past performance, (e.g., the Nobel Prize), but modern foundations are using prizes to drive future progress. For example, the first non-government-supported space flight was the product of a competition created by the $10 million X-Prize. Prize-based philanthropy spurs innovation by enabling donors to leverage the creativity of many people to innovate or solve a problem without having to support each person individually.
Have you already tried these? Check out our resource, 10 Things You Didn’t Know You Could Do with Your Foundation, for more ideas.
10 Things You Didn't Know You Could Do With Your Foundation
Did You Complete Today’s Challenge? Let Us Know and We’ll Donate!
We’re donating for every challenge you complete! To let us know you’ve planned something new for 2023, head to Facebook, Instagram, LinkedIn, and/or Twitter to like, comment and share our post for that day or let us know by emailing us!