24 Oct Delegate’s Andy Hart in Campden FB: How to Avoid the Pitfalls of Philanthropy
Philanthropy is a common function of families to engage the next generation and to further the family legacy. But as Delegate Advisors Managing Partner Andy Hart points out in a recent Campden FB article, many families find themselves giving without a clear direction – which can lead to several pitfalls.
“There are three common mistakes families make with philanthropy: sizing, structure and bargaining,” he explains. “Yet if you have a good plan that covers these areas, most future philanthropy problems resolve themselves. When they do not take the time to establish a philanthropic strategy, families often regret the early years.”
Hart continued by explaining that determining the size of the pledge, especially if the pledge is not for a fixed amount, is the first step. Once the size is determined, the family must define the structure, including whether the donation will be made at one time, or if spreading the donation over a number of years would provide more benefit. Finally, Hart encouraged families to consider using their personal networks. For example, he says, “a family might be able to secure naming rights to a university building for a lesser amount by acting as the lead pledge and helping to secure smaller pledges.”
To learn more about avoiding the pitfalls of philanthropy, read the full article in Campden FB.