Moving Beyond “Scattershot” Giving
| From the President's Laptop: The TVCF Perspective Winter 2008 |
scat•ter•shot (skāt'ər-shŏt') adj. Covering a wide range in a random way; indiscriminate: "his habit of
scattershot comment on whatever issue catches his eye.”
Philanthropy pundits are lining up to warn us about the pitfalls of “scattershot” giving – giving in a
haphazard or reactive way to whatever appeal catches our attention at the moment. They are beginning to
coin terms like “tactical philanthropy” and "social return on investment.”* Scattershot giving, they warn us,
can undercut the effectiveness of our giving – we won’t get the “bang for the buck” out of our charitable
dollars – and it can shortchange us in the tax deduction department, so that we end up giving more and
enjoying the tax benefits less.
Ottinger cites the Prostate Cancer Foundation as a good example of how to apply portfolio theory to social
investing, and so avoid the pitfalls of a reactive, scattershot approach to giving:
As I reflect on Ottinger’s description of “portfolio philanthropy,” it strikes me that this is what
community foundations do. This is the strength of community foundations. Community foundations:
Community foundations are “portfolio philanthropy” organizations. They are also experts at
how to do philanthropy in a way that takes full advantage tax benefits, so that once a gift is made, you have
more money left over to spend on your family, your business, or on other charitable causes you care about.
For example, community foundations know the ins and outs of donating appreciated securities (e.g., stocks,
mutual funds) instead of cash, which can result in substantially higher tax savings.
Giving in 2008: Making the Move to a Portfolio Approach
In this election year, we're going to hear a lot about the very real human needs that exist in our country, and
what we ought to do about them. One thing you can do to make a difference is to move beyond a
“scattershot” approach to giving in 2008. I invite you to call me and learn more about how you or your
company can join the Tri-Valley Community Foundation’s family of donors to make a strategic, tax-smart,
maximum-impact investment in our community.
--David Rice
925-734-9965
*http://hbswk.hbs.edu/archive/1957.html
**http://www.lmradvisors.com/images/Portfolio_PhilanthropyFinal1.doc
scattershot comment on whatever issue catches his eye.”
Philanthropy pundits are lining up to warn us about the pitfalls of “scattershot” giving – giving in a
haphazard or reactive way to whatever appeal catches our attention at the moment. They are beginning to
coin terms like “tactical philanthropy” and "social return on investment.”* Scattershot giving, they warn us,
can undercut the effectiveness of our giving – we won’t get the “bang for the buck” out of our charitable
dollars – and it can shortchange us in the tax deduction department, so that we end up giving more and
enjoying the tax benefits less.
Ottinger cites the Prostate Cancer Foundation as a good example of how to apply portfolio theory to social
investing, and so avoid the pitfalls of a reactive, scattershot approach to giving:
- Founded by Michael Milken, the famous junk bond financier, the PCF allocates its charitable grants
only after careful research of the entire issue area; ensures that its investments work together to fill
gaps in the field; and pools donor assets for scale and leverage in the area of prostate cancer.**
As I reflect on Ottinger’s description of “portfolio philanthropy,” it strikes me that this is what
community foundations do. This is the strength of community foundations. Community foundations:
- Are experts in the landscape of need in a particular region, across a range of issues that affect the health
and well-being of communities and their people.
- Are well-aware of both the range and effectiveness of resources available to meet specific community
needs and the resource gaps. They are also skilled in creating coalitions and collaborative networks of
donors, government agencies, and nonprofit organizations to fill those gaps.
- Form a pool of committed, community-spirited donors – both individual and corporate – who leverage
their support for existing and new initiatives in the community by joining with others who share their
passion for community philanthropy.
Community foundations are “portfolio philanthropy” organizations. They are also experts at
how to do philanthropy in a way that takes full advantage tax benefits, so that once a gift is made, you have
more money left over to spend on your family, your business, or on other charitable causes you care about.
For example, community foundations know the ins and outs of donating appreciated securities (e.g., stocks,
mutual funds) instead of cash, which can result in substantially higher tax savings.
Giving in 2008: Making the Move to a Portfolio Approach
In this election year, we're going to hear a lot about the very real human needs that exist in our country, and
what we ought to do about them. One thing you can do to make a difference is to move beyond a
“scattershot” approach to giving in 2008. I invite you to call me and learn more about how you or your
company can join the Tri-Valley Community Foundation’s family of donors to make a strategic, tax-smart,
maximum-impact investment in our community.
--David Rice
925-734-9965
*http://hbswk.hbs.edu/archive/1957.html
**http://www.lmradvisors.com/images/Portfolio_PhilanthropyFinal1.doc
Portfolio Philanthropy:
The “Wise Social Investing” Approach
Randall Ottinger, a successful executive-turned-philanthropic-adviser, has
come up with an alternative to haphazard, scattershot giving that he calls
“portfolio philanthropy.” As Ottinger describes it, portfolio philanthropy is a
well-researched, “big picture” approach to charitable giving that takes into
account three things:
The “Wise Social Investing” Approach
Randall Ottinger, a successful executive-turned-philanthropic-adviser, has
come up with an alternative to haphazard, scattershot giving that he calls
“portfolio philanthropy.” As Ottinger describes it, portfolio philanthropy is a
well-researched, “big picture” approach to charitable giving that takes into
account three things:
- the entire landscape of need around a particular issue
- the range and effectiveness of responses available to address the need,
and any response gaps
- the best mix (as in, the best “social investment portfolio”) of available
and innovative responses so that you get the most bang for your
charitable bucks
