September 7, 2000 | Read Time: 2 minutes
A new generation of donors is using a range of innovative methods, from “giving circles” to “venture philanthropy,” to attack the causes of social ills and ensure that charitable dollars are well spent, Kiplinger’s magazine reports (September).
“Philanthropy today has a new vitality,” the magazine says. “This ‘new philanthropy’ is born of the frustration that many peoplefeel with traditional charities, fueled by wealth from the booming economy, and guided by the desire to make sure that charities accomplish their goals.”
Among the donors profiled in the article are Mike Valder, a 60-year-old trial lawyer in Phoenix, and his wife, Janet, who in 1995 formed the Arizona Social Change Fund.
“In months with a fifth Sunday, the Valders make that day ‘Possibility Sunday,’ hosting a gathering of 100 or more donors, community representatives, and other supporters,” the magazine writes. Those people form a ‘giving circle,’ a group of donors who put money into a common pot for causes that match the members’ charitable goals.”
Over the past five years, the Valders’ giving circles have taken in gifts from more than 200 donors and given nearly two dozen grants that total more than $100,000, the magazine says.
Kiplinger’s also highlights other giving techniques that offer donors a significant measure of influence over how their gifts are used. Among those techniques is venture philanthropy, which the magazine says allows donors to “become involved with charities in much the same way as venture capitalists work with businesses in which they invest.”
In assessing the future of giving, the magazine quotes Renata Rafferty, a philanthropy consultant and author of Don’t Just Give It Away: How to Make the Most of Your Charitable Giving. Says Ms. Rafferty, “Stop being reactive in your giving and become proactive or you will wind up wasting your charity dollars.”
The article is available at http://www.kiplinger.com.
