Giving Compass' Take:

• Bruce DeBoskey shares lessons that he has learned from helping foundations building coherent philanthropy practices that align with their values and make an impact.  

• How does this advice match or deviate from your own experience? Are your investments aligned with your values? 

• Learn the basics of impact investing. 

Philanthropy is “coherent” when it is logical, well-organized, well-planned and sensible – as well as easy to understand and articulate.

Over the years, I have helped dozens of families, foundations, businesses and family offices achieve coherence in their philanthropy. In the realm of family philanthropy, here are six key lessons.

  1. Philanthropy can be both externally impactful and internally transformational. Most people approach philanthropy by asking the important question: “What difference do I want to make in my community, nation or world?” An equally important question is: “What difference do I want to make for myself or my family?”
  2. Wealth-creators accrue enormous gains when they share control of philanthropy. In family philanthropy, the adage “he who pays the piper calls the tune” simply doesn’t work — especially when an important internal goal is to engage other family members in a meaningful effort.
  3. Philanthropic capital should be invested not only to avoid contradiction with mission, but also to help achieve mission. Viewing capital holistically, investing it for impact and financial return, can unleash billions of dollars toward improving the world.
  4. Spreading assets thinly over a wide range of causes rarely moves the needle on any of them. Instead, by focusing on just a few carefully selected issues, donors can deploy a strategic approach and go deep rather than wide.
  5. Solutions to humanity’s most intractable problems will require innovation, necessarily involving risk. Dedicated to a purely social return on investment, philanthropic capital may well be the most effective and final stronghold for true risk-taking.
  6. Philanthropy is inherently optimistic — especially in divisive and disheartening times.

Read the full article about coherent philanthropy by Bruce DeBoskey at The Denver Post.