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| 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 | |
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| 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.
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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. |
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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?"
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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.
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