One outstanding positive to have emerged from the Covid-19 pandemic has been the fact that philanthropy has come to the fore like never before.
Countless lockdowns and lives lost have given people worldwide cause to reflect on what really matters in life — and make a difference through generosity and giving.
But what exactly is philanthropy and why should you become a philanthropist?
Caroline Piraud, head of philanthropy services at the leading Swiss wealth management group Julius Baer, says anyone can embark upon a philanthropic journey, be it with the United Nations Sustainable Development Goals (SDGs) or the 4-T approach at Julius Baer.
She says responsible wealth management is about protecting, growing, and passing wealth on to the next generation, while addressing today’s global challenges.
Effective philanthropy requires a heartfelt yet strategic approach, Caroline believes.
“Good intentions are not enough,” she explains. “As a philanthropist, you want to be passionate about giving while knowing it’s actually achieving a positive impact.”
No matter your financial situation, the gift of giving is accessible to all, Caroline insists.
Effective philanthropy requires a heartfelt yet strategic approach, Caroline believes.
Here she outlines the three steps you can follow — including Julius Baer’s 4-T approach — to channel your inner philanthropist:
Step one: find your cause
“What’s close to your heart? We ask clients this question as they turn personal values and passions into impactful acts of philanthropy. Global trends among wealthy philanthropists include education, health, arts, culture and sport, and the environment.
“You don’t need a lot of money to be a philanthropist, because everyone has something to give. Everyone can be a philanthropist, even children. So, what moves you and your family? Which topics dominate dinner-table discussions and spark heartfelt debate? The United Nations Sustainable Development Goals are a great source of inspiration.
“Philanthropy is about positive change and, while there’s probably a legacy you wish to leave, it’s a great idea to interview your kids about the future they wish to grow into. Importantly, we need to be aware of potential pitfalls of charitable work. It is crucial to remember to check with beneficiaries about what’s actually needed. No matter how well-intentioned, our outside-in perspectives don’t always match the reality of what’s a priority, most impactful or even beneficial.”
Step two: your personal four Ts
“The next step on your personal philanthropic journey is to consider all of the resources you can dedicate to this, beyond just the financial ones. This is the time to ask yourself: What do I have to give? Here the four Ts come into play: your time, your talent, your treasures and your ties.
Global trends among wealthy philanthropists include education, health, arts, culture and sport, and the environment.
Time: “Giving time is just as important as giving money. Firstly, there is the gift of your presence, which is not to be underestimated in a world where loneliness is often referred to as an epidemic with real social, health and economic impacts. And secondly, there’s no shortage of tasks that need volunteers, such as shopping for those in a risk group.”
Talent: “Your combination of talent is unique to you. While accounting, board experience and fundraising are skills frequently associated with philanthropy, it pays to cast the net much wider. Aged care institutions often welcome guest entertainers, parents of newborns appreciate meal trains, and mentorship programmes seek diverse and knowledgeable mentors. Focusing on talent is a great way for kids to flex their philanthropic muscles. Keen bakers could gift treats to socially isolated neighbours, budding musicians could host a fundraiser, and older kids could pass on skills they’ve mastered.”
Treasure: “Perhaps your philanthropic budget stretches into the hundreds of thousands, or maybe your child has the sum total of this week’s pocket money to give. It’s about maximising the positive impact of what you can afford to spend, even if that’s simply aligning existing outflows with your cause, such as shopping small or local.
“Another tip to think broadly is that: Would time-sensitive, one-off donations be more impactful abroad due to currency conversion rates? Get researching and get clever about what you’ve got to give and the causes you’re passionate about.”
Ties: “There’s a reason the saying ‘It’s not what you know, but who you know’ exists. It is important to screen your personal network of family, sports teammates, friends and work colleagues to see who you can join forces with. Leveraging one another’s skillsets and networks can amplify your impact or perhaps your role is to be the catalyst, to connect people who together can bring about great change.”
Supporting children’s health and education is a global trend among wealthy philanthropists.
Step three: bringing it all together
“In sharing your gifts with the world, it pays to be as clear and structured as possible. Know your goals, your personal focus and giving strategy, and check your actions are both impactful and positive. A clear strategy defines investment amounts and timelines. See if it makes sense to set up your own charitable structure; consider your preference for short- or long-term engagements; know how to stop emotions overwhelming decisions; and identify who’ll keep an eye on your financial safety.
“Also, be as well-versed as possible on how to find the right partner or charity organisation, on the pros and cons of local versus global engagement, and how to effectively measure your impact and any tax implications.
Once you’ve worked through these steps, it becomes clear that we’ve all got something to give, no matter our age or financial situation. The ability to turn your time, talent, treasures and ties into a positive impact for others is empowering. The bottom line is: it’s never too early to get started.”
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