Philanthropy 101: It’s not about the money!

Just what is philanthropy?

 

What comes to mind when you hear the word “philanthropy?”  Money?  Names on buildings?  Tax and legal strategies for the wealthy?  For most of us, philanthropy is an ivy-league term that connotes something reserved for the Park Avenue crowd, not the majority of us living a few blocks off Main Street.  However, the reality is that philanthropy has nothing to do with money or wealth.  Nothing to do with writing large checks.  And what’s more?  Each of us and our families can benefit from a little taste of philanthropic activity.  For now, let’s just look at some of the origin of the concept…

 

Starting with just the word “philanthropy,” it comes from the Greek words, “philein” and “anthropos.”  For the Greek scholars out there, you’ll know that these two words basically translate to “love for humankind.”  The widely accepted theory for the origin of the word, is that it comes from the ancient Greek playwright, Aeschylus, in depicting the Titan Prometheus’ “philanthropos tropos,” or “humanity-loving character.”  If you recall, Greek mythology tells of Zeus’ decision to destroy humans as they had no knowledge, skills, or culture of any sort.  Prometheus, apparently being a humanity-loving gent, decided to give them two empowering gifts – fire and optimism (or blind hope).  With fire, humans could be optimistic, and with optimism, they would use the fire for the benefit of their race.  From there was born philanthropia, or loving what it is to be human.  (Oddly, the main thing I remember from my studies of Greek mythology, was that Prometheus was punished by being chained to a rock where vultures would come every day and eat out his liver.  Because he was a Titan, it would grow back that night, and he’d endure the same the next day.  Nice…)

 

As you’ll notice, there wasn’t a mention of “giving money away,” “tax strategies for the rich,” a suggestion of “your name on a building;” or anything of the sort.  Philanthropy in its root form is doing well for others because you genuinely care.  It’s making an effort for the well-being of the human race.  This could be about supporting a charitable organization that is doing good things, it could be about giving a Cliff Bar to someone on the street, or it could be merely holding open the door for someone on the way into a building.  So, the bottom line here is that we can all be philanthropists. 

 

However, there is more to the message.  There’s more because you ought to understand both why and how you should become philanthropic. 

 

I’ll jump out on a limb here and make the assumption that most of us have given something to someone in our lives.  I’ll also make the bold suggestion that you may have even enjoyed it.  Well, as you might guess, there have been studies done linking giving and generosity to good health – mental, emotional, and spiritual.  In a future article, I’ll share those with you; the outcomes are telling. 

So, giving is good for you; most of us know that already.  Here’s the real question that I get from individuals, couples, and families.  How do I best give?  More than ever, folks are becoming more concerned with maximizing the actual impact of their gifts.  Our dollars are finite.  If we want to truly participate in addressing a societal problem, where are our dollars best allocated?  Which organizations will be the best stewards of our funds?  How do we maximize the impact of giving for our family? 

In my mind there are two answers to these questions.  One addresses increasing the odds that you are choosing to fund organizations that have the highest likelihood of solving the core problem you wish to solve.  To some extent, this is an investment equation.  How will you get the maximum return on investment, when return is quantified by success in solving a social problem?  The other is, how might you and your family, company, or group go through the process of selecting an organization so as to maximize the benefits to your family?  This second question is the one that I find more valuable and most often missed. Just another lesson we tackle at Main Street Philanthropy; stay tuned to learn more!  In the meantime, do something nice for someone; see if it improves your day!   

About Ryan Ponsford

Ryan Ponsford is a Co-Founder of Main Street Philanthropy; the idea for which stemmed from his working with families addressing financial challenges through wealth transfer. He has been involved in wealth management and real estate for nearly two decades; specializing in the evaluation, management, and transfer of illiquid assets. That the kids blow their inheritance is no surprise, the number of family relationships destroyed is tragic, and the cause of much of Ryan’s efforts.

Mr. Ponsford possesses a unique ability to recognize the source of problems, provide clarity for solutions, and grasps the impact solutions will have on the peripheral of clients’ lives.

He graduated from Point Loma Nazarene University with a degree in Industrial-Organizational Psychology and extensive coursework in Chemistry. In addition, he holds securities licenses, professional licenses for Life and Health Insurance, California Partnership Long Term Care, is a Real Estate Broker, and holds multiple industry certifications.

Ryan has participated in several industry-specific mastermind groups including the Laureate in Wealth Strategies, InKnowVision, SunBridge Legacy Advisors, Advisors in Philanthropy, and the Southern California Institute.

He is a sought-after speaker for client and industry events, investment conferences, private investment clubs, and family gatherings.

ryanp@mainstreetphil.org
858-255-1680

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