New Years Resolution Suggestions for Philanthropists
Philanthropic ventures can be a big and serious business, or they can be as simple as writing a check to a favorite church or service organization. Many think that the mega moguls simply write checks as their hearts dictate. This may be so for smaller bequests, but the serious money is carefully distributed for five reasons: hidden criminal activity, fraud, tax fraud, waste and abuse.
Nothing is more disappointing or heartbreaking than to see a generous and good benefactor cheated, defamed or drawn into scandal because of well meaning, but poorly formed intentions.
Philanthropists are also asked to serve on boards of directors for non profit corporations, service clubs and other organizations. The title is impressive, but in many cases, the title is cosmetic and the individual is rarely present for meetings or involvement. This can lead to guilt by association when the organization gets into trouble.
There are few businesses that are as vulnerable to financial, religious, institutional and social predators as philanthropy can be. The emotional considerations alone can overwhelm the better senses when the idea of charitable giving comes up. In many cases, only pennies from every donated dollar actually get to the programs and services that an organization claims to provide. Yet those organizations manage to collect more and more money, diverting it to anything but the services that are so badly needed.
Savvy predators will take in money and will find a myriad of ways to divert funds, mislead the nonprofit "investors", and cook the books. Extremist ideology, offensive works of art, mission creep and organizational dysfunction can damage reputations and break hearts before benefactors ever become aware of any problems.
A resolution to develop more solid giving programs:
Thus, the first suggested New Years resolution is for philanthropists to develop solid programs for giving that include a mission statement, an investigation and review program, and an accounting and auditing standard. This program could be quite simple or it could require a full time staff, depending on the size and complexity of the philanthropic budget and organization. But having both a personal and a professional plan can prevent busy and generous people from becoming associated with fraudulent, wasteful, or otherwise problematic organizations and causes.
A resolution to formulate a strong and functional guiding mission statement:
The solid program starts with a resolution to develop a personal and professional philanthropic mission statement. This statement basically describes the core values, goals and missions of the giver, but can be an extensively refined and researched document for larger foundations and trusts.
"I want to give this money to this cause because...." is a good starting statement that gets to the truth by stripping away any confusing and flowery language.
Once the mission statement becomes a guiding set of principles and goals, it will be easier to keep from drifting into unknown territory or being drawn into an uncontrollable situation. Far too many benefactors have flowery mission statements that they do not believe in, can articulate, or can use as guiding principles to keep their giving programs on track.
A resolution to spend more effort on getting the biggest bang for the buck by directing funds to programs that work:
Sometimes the best non profit programs will languish because they are not given the attention and money that they deserve. At other times, the most controversial and problematic mistakes are made because bad programs get the most aggressive publicity and sales pitches. A solid investigation and review program will help to guide money to specific programs that work.
At any rate, the most dangerous practice is to give to an organization's general fund without finding out where the greatest successes are occurring.
A resolution to take non profit and organizational board positions seriously, or to not take the position at all:
Board membership is a true call to service. While a board title looks good on the public profile, it looks even worse to have ones name associated with a scandal, a civil lawsuit, a controversy, a crime, or an organizational failure. The only way to see trouble coming and to be in a position to prevent it is to actually serve as an involved, curious and assertive member of the board.
Thus, the suggestion for a New Years resolution is to actually serve as a board member, or to think twice before associating with an organization at the board level.
Finally, a New Years resolution to set aside time for more investigation, more involvement and more forethought will help the world's philanthropists and the world's people to get the biggest bang for the buck in 2012.
