|
|
|
|
| As a special benefit to SDG family foundation members, Family Ties will be published bimonthly in 2009. Feel free to submit news about your foundation or other topics of interest. |
April 2009 | |
|
|
| Join Us on June 3 for "An Entrepreneurial Spirit: Three Centuries of Rockefeller Family Philanthropy"
History, values, and communications have helped to steward and engage multiple generations of the Rockefeller family in philanthropy. This documentary explores how the family has sustained its giving over 120 years and how it has transmitted its values and views to support its philanthropy. What can philanthropists of all sizes learn from the great legacy of the Rockefeller family?
This session will provide us with insight into the family story that initiated and sustained this legacy across generations. We will hear personal stories about the successes and challenges of the Rockefeller family's philanthropy and we will have time to engage in a conversation with the speakers. Click here for more information and speaker bios. | |
ASF Spring Seminars: Perfect for Family Foundations
The Association of Small Foundations is hosting a series of Spring Seminars here in San Diego:
April 20-22, 2009
Embassy Suites San Diego Bay - Downtown, 601 Pacific Hwy, San Diego, CA 92101
Most attendees will be from family foundations across the country. We highly recommend that you take a close look at the seminar choices:
April 20: Foundations 101 -OR- Trustee Leadership Seminar
April 21: Legal Essentials -OR- Funding Public Education
April 22: Planning for Impact -OR- Climate Change
Additionally, all SDG members (you do not have to be attending any of the seminars) are invited to a networking reception on April 20, 2009, from 4:30-6:00pm at Embassy Suites San Diego Bay - Downtown, 601 Pacific Highway, San Diego, CA 92101, The Pacific Fish Company Veranda (located off of the hotel atrium). Please RSVP to hanh@smallfoundations.org. |
| The Perpetuity Debate: Which Good Things Should Last Forever?
Among the most critical debates that every giving family must face is whether to exist "in perpetuity" or to structure a foundation, donor-advised fund, or other endowed giving vehicle to sunset at a designated point in its lifecycle. While a majority of giving families choose the perpetuity route for reasons such as the potential for greater compounding interest - and thereby seemingly greater potential to address intractable social programs that have no such end date - a growing number of families are opting to "spend out" their foundations based on familiar considerations, stated missions, and a desire to have a tangible impact, during their own generation, on problems they feel demand urgent attention.
In this issue of Family Ties, we are pleased to feature a sampling of highly regarded and widely circulated resources that address multiple viewpoints on both sides of this topic. If you have questions or if you have come across other resources that you feel would benefit your family-foundation colleagues, please let us know. |
Research & Resources
From the Family Philanthropy Online Knowledge Center...Alternatives to Perpetuity: A Conversation Every Foundation Should HaveThis 2005 article (pdf) in the National Center for Family Philanthropy's journal, Passages, is aimed at new donors considering a limited lifespan for their foundation, existing foundations that have already set a closing date, or any family contemplating the question of perpetuity. The article identifies the basic challenges that foundations often face when looking to spend down their assets: redefining goals, changing investment and spending strategies, communicating with grantees and the public, anticipating staff needs, attending to legal requirements, and planning their legacies.
Considering the Question of PerpetuityA threshold decision for the donor of virtually any kind of family fund involves its duration: Will it last a certain term of years or in perpetuity? This chapter (login required: email us if you need the username/password) from 'Investment Issues for Family Funds' offers sound arguments for both approaches through brief profiles on the choices made by family foundations of different types and sizes.
NCFP Teleconference: Perpetuity is a Long Time
Most foundations are created in perpetuity, but a growing number are planning to sunset, most for family or program reasons. Some foundations feel strongly that they best serve society by continuing their work over the long haul. Some simply avoid discussing the issue. On December 11, 2008, Richard Moore, President of the Weaver Foundation, and Daniel Bader, President of the Helen Bader Foundation, discussed how to have a conversation with your foundation's board about perpetuity. Click here for the presentation and click here for a transcript (login required).
Other Great Resources on Perpetuity
Life Spans of Charitable Foundations: Arguments for and Against an Assumption of Perpetuity
As foundations struggle with reduced assets in a still declining economy, what are the considerations regarding the current state of foundations and charitable life span? With a range of strategies to consider, how should foundations approach their asset base? Listen to the audio of this panel event, featuring Francie Ostrower, Arthur Schmidt, Virginia Esposito, and Adam Meyerson. This 2007 report (pdf) examines foundations that have moved beyond the "default" positions of perpetuity and 5% payout -- foundations that are spending down and several that have adopted policies of higher or more flexible payout.
Julius Rosenwald and the Rosenwald Fund: A Case in Non-Perpetual Philanthropy
Intended for students of philanthropy and professionals in philanthropy, this 2007 case study (pdf; pages 149-164) brings new relevance to the strong argument in the late 1920s and provides several discussion points for groups that would like to debate this issue.
Should Foundations Exist in Perpetuity? In this Philanthropy Roundtable article (pdf), author Heather R. Higgins argues for foundation sunset laws, while Michael S. Joyce counters that under the right conditions, foundations can be trusted to carry out the wishes of their founders.
Giving While Living, Defining the Endpoint, or Endowing for Perpetuity Is it best for donors to distribute all of their philanthropic resources in their lifetime? Should a giving program or foundation be established with a defined goal and endpoint, whether it's 20 or 30 years? Or is it most effective to endow a foundation that will have permanent giving capacity? This Rockefeller Philanthropy Advisors article (pdf) examines some of the widely held advantages and drawbacks associated with these three different philosophies. |
|
Family Philanthropy Headlines
"Trying times can inspire positive change-and a chance to get creative with your grant dollars. No one knows this better than the Hutton Foundation in Santa Barbara, California. Hutton has found a way to take this lemon economy and leverage its best asset-real estate. With markets at an all-time low, Hutton has been buying property on the cheap and providing it as office space to its nonprofit partners. In doing so, it's able to invest in its community and at the same time, boost its own portfolio."
The Jewish Week: "Navigating the Wealth Transfer""It has become a common boardroom scene at family foundations: the grandfather wants to fund traditional scholarships in the local community, while the granddaughter is passionate about providing micro-loans for disadvantaged women in Africa. How to bridge the generational giving gap?"
|
Other Family Philanthropy Resources & Events
Family Foundation Teleconference: Family Boards: Why Can't We Just All Get Along?Thursday, May 14, 2009, 9:00-10:30amEvery family has occasional disagreements when they engage in grantmaking together. How do you handle such common dilemmas as: family members who disagree on grantmaking, discretionary dollars or payouts; members who act out at board meetings or don't do their share; a leader that's not willing to step down; individuals who carry family baggage or branch differences into the board room? In this teleconference presented in partnership with the National Center for Family Philanthropy, Judy Healey, a leading family philanthropy consultant, shares insights and tips gained through in years of helping families bring harmony to their meetings.
COF Teleconference: Avoiding Conflicts of Interest
May 21, 2009, 10:00-11:30am
Go beyond legalities to explore the larger ethical questions of foundation management, governance and fiduciary duties in a post-Madoff environment. Led by a family foundation trustee and Council legal staff, the program includes a case study of what we all might learn from the Madoff scandal in terms of potential conflicts of interest, as well as from other cases involving "gray area" ethical issues.
Interlaken Inn, Lakeville, Connecticut
Whether your foundation has been around for 50 years, your family is new to philanthropy, or you find yourself somewhere in between, this event will advance your family's giving to the next level. The Council is partnering with the Association of Small Foundations to bring you this exciting multi-generational family retreat. |
FP Online: Helping Your Family Make Informed Decisions
SDG's partnership with the National Center for Family Philanthropy offers direct access to the Family Philanthropy Online Knowledge Center and teleconference series (FP Online). In addition a library of books is available to borrow related to family philanthropy. FP Online provides practical information and advice through a continually updated collection of more than 1,000 articles, research reports, and sample documents related to family philanthropy. Topics include:
- Teaching and involving your children in giving
- Managing family dynamics in the decision-making process
- Understanding the legal and ethical dilemmas of family philanthropy
- Creating a mission statement and guidelines and finding a focus for your grantmaking
- Addressing issues of geographic dispersion and succession planning within your family
- Creating a meaningful legacy for your family's giving
To access FP Online: Click here and then click on the "Family Philanthropy Online/Knowledge Center" button. Enter Username and Password. For further information--or if you need the login info--contact Phyllis Levine, SDG Member Services Director, at 619-744-2180. |
Upcoming SDG Events
Association of Small Foundations Spring Seminars
April 20-22, 2009 Embassy Suites San Diego Bay - Downtown, 601 Pacific Hwy, San Diego, CA 92101 Most attendees will be from family foundations across the country. We highly recommend that you take a close look at the seminar choices: April 20: Foundations 101 -OR- Trustee Leadership Seminar April 21: Legal Essentials -OR- Funding Public Education April 22: Planning for Impact -OR- Climate Change
May 8, 2009, 8:30-10:30 amPrice Charities, 4305 University Avenue, Suite 630, San Diego, CA 92105 NEW! An Entrepreneurial Spirit: Three Centuries of Rockefeller Family PhilanthropyJune 3, 2009, 12:00-2:00 pm
Hyatt Regency La Jolla, 3777 La Jolla Village Drive, San Diego, CA 92122
Click here for a complete list of SDG programs. To RSVP, please call (619) 744-2180 or email programs@sdgrantmakers.org (include your full name and organizational affiliation with your response, please). Reminder: SDG programs are open only to member grantmakers and nonmember grantmakers as invited. | |
|
|
|
|
|
|
