A growing number of families are thinking “big picture” when it comes to both their financial and philanthropic planning. Through community support projects and initiatives, philanthropic endeavours have the power to promote well-being and make a meaningful impact on people’s lives.
For many high-net-worth families, philanthropy is the vehicle that enables them to contribute to key causes, embody their values and strengthen their legacies for generations to come. But building a compelling philanthropic brand – with its various components – demands a strong sense of purpose from the outset.
Philanthropy is deeply personal. But making a significant, positive impact to the causes you care passionately about requires a clear mission and strategic approach. As causes and issues evolve over time, defining a core mission can help you and your family stay focused and dynamic.
As with any good plan, begin with your family’s “why”:
Once your family has crafted a mission statement that articulates your philanthropic values, beliefs, and principles, you’ll have a strong foundation to guide your charitable work while also planting the seeds of a legacy you can be proud of. Your wealth manager may be able to connect you with professionals to help you polish this mission statement and craft a plan to put it into action.
This component refers to the approach you’ll lead with in your philanthropic endeavours. One of the most common strategies involves supporting a non-profit with direct donations but there are other options that may use your resources to aid your causes more effectively.
For example, you might consider establishing a private foundation. Among philanthropists, foundations remain a popular option because they offer an effective channel to advocate from, permanence, prestige, and, of course, the legacy they allow families like yours to build.
Playing an active role in – or having a “hand” in – philanthropy is the key to putting your vision into action. There’s no doubt that financial contributions make a huge impact.
But depending on the cause you pursue, you may find it more worthwhile to contribute your time over your money. You and other members of your family may consider lending your skill sets more directly as board members of an organisation or non-profit. If your family decides that a leadership position isn’t the right fit, consider pro bono work, acting as a mentor behind the scenes, or even donating the use of your property.
Philanthropy comes in many shapes and sizes, so it’s important to identify the avenues that empower you to make the impact you envision and leave you with a feeling of fulfilment.
When you “join hands” and coordinate your efforts with other like-minded philanthropists – both individuals and families – you can combine resources and harness the power of community to achieve incredible outcomes.
For causes that impact millions of people – climate and environmental issues or initiatives focused on helping youth, for example – coordinating your family’s resources with other people and organisations might not only increase the reach of your philanthropic efforts, but may even allow your projects to operate more nimbly and with greater agility in the long term. While pooling donor funds and group fundraisers are by no means new ideas, a collaborative approach to philanthropy could allow you to push your ambitions to new heights.
To start building your philanthropic legacy, you’ll need to initiate a few conversations. While your wealth manager may help you explore your options financially, you will likely need to enlist other professional services to help launch your philanthropic venture – including solicitors, accountants, and a branding expert or agency to help you craft a mission statement that describes your organisation’s purpose for existing, and more.
Sources: foundationsource.com; kiplinger.com; givingcompass.org; assetmark.com; wealthmanagement.com; fa-mag.com; causeiq.com
Black MondayOn 19 October 1987, the stock markets experienced a dramatic plunge that prompted many firms to shut down their trading desks and turn off their phones to minimize internal losses. Raymond James refused to do the same. Our desks stayed open to help meet clients’ needs, resulting in our first and only unprofitable quarter since the firm went public in 1983. |
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Who was Raymond James?The Raymond in our name is actually from Edward Raymond, owner of a 15-employee mutual fund sales group, Raymond and Associates, along Florida’s west coast. He sold his company to Bob James on 15 July 1964, on condition that the surviving firm be called Raymond, James & Associates. Three days after the sale, Ed Raymond was involved in a near-fatal automobile accident and never joined the firm. Nonetheless, even after Raymond had passed away, Bob James insisted that his name remain on the door – ahead of James’ own. That was a promise he made to Ed Raymond three days before the accident, and Bob James was a man who kept his promises. |
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Bear Market of 1974The severe bear market of 1974 threatened the existence of Raymond James, which was bleeding capital by the day. Tom James, his father and other leaders took extreme measures to keep the firm afloat, slashing costs, foregoing paychecks and even attempting to sell the firm for just enough capital to protect client assets and retain as many associates as possible. The story could have ended very differently if not for a sharp upturn and continued rebound in the stock markets late in the year. |
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Taking Raymond James PublicWhen consideration was being given to taking Raymond James public, Tom James penned a letter to shareholders (largely employees at the time). ” … the public offering should be considered as a statement of our independence. While this is a psychological rather than an economic rationale, it is nonetheless very important. We have asserted for some time that we are not interested in becoming a small part of a very large corporation. That assertion results mainly from the inclinations of management rather than the economic benefits associated with either alternative. The public stock offering affords us the opportunity to enjoy a little bit of the best of both worlds. While shareholders will be given liquidity at fair market value, we will still have the ability to control our own destiny.” After 40+ years of Tom’s leadership, upon becoming CEO, Paul Reilly was often questioned about whether the company might ultimately surrender its cherished independence and be acquired by some larger entity. His response: “Not while I’m around.” It’s a theme that continues today. |
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