The Best Thing You Will Ever Do 

 Your philanthropic journey can be one of the most enjoyable ones you take. 

At the beginning of the year, Elon Musk made waves on Twitter when he tweeted: “Btw, critical feedback is always super appreciated, as well as ways to donate money that really make a difference (way harder than it seems).”     

We often think of the donor journey from the perspective of fundraising but what about the philanthropic journey? How many potential philanthropists feel like Elon Musk, that it’s harder than it seems to donate money?      

There has never been a better or more important time to have this discussion. This is philanthropy’s moment. The world events of the last year have been profound. It has become very evident why philanthropy is important. Five lessons we learned in the last year are: we are all interdependent in a way that we hadn’t appreciated before; we have learnt how important philanthropy is and will be in our response to national and global crises; we now have much higher levels of inequality between the wealthy and poor across the world; the largest intergenerational wealth transfer ever is just about to happen; governments across the world simply will not be able to do it all and philanthropy will have a critical role.   

Andrew Carnegie was one of the most successful businessmen and most recognised philanthropists in history. As Carnegie put it: “It is more difficult to give money away intelligently than to earn it in the first place.” Having worked closely with philanthropists from around the world with net worth from a few million to several billion, I have observed that the best drivers for philanthropy come from within; it is not something you can rush. 

In Carnegie’s Gospel of Wealth he discussed what he saw as the increasing gap between the wealthy and the poor with the growth in industrialisation. Carnegie saw this gap as being a natural part of innovation and modernisation, however, he also believed: “Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.”   

In my view, there are three critical drivers that maximise impact for the philanthropist: be creative; regard how you give as an investment; and giving should be the best thing you ever do. Carnegie, who died more than 100 years ago, knew how to tap into these internal drivers and even now we can see the impact his philanthropic contributions have made.   

Spend time thinking creatively about where and how you would like to give. What personal experiences or values connect with areas of philanthropic need? When we look at Carnegie’s legacy, you can see his creativity in the development of libraries across the US.   

If you were investing your money into a company, you might ask: is this business sound? Is this the best organisation for my investment? How can I deploy the money, so it is well spent? How can I evaluate the success of my investment/gift? When we look at Carnegie’s investment into public libraries, we see that he took the same approach as a business investment. To ensure that communities had equal investment, he would only pay for buildings and only after local authorities showed him credible plans for acquiring books and hiring staff. 

You should feel good about whom you give to and how your gift is used. This takes some time, research and evaluation to figure out, just like a business investment would. Your philanthropy journey should instil a sense of deep pride and happiness. Your giving strategy should not be out of a sense of guilt or because you feel pressured.  

Carnegie believed that just giving away money was not enough. The problem was ‘indiscriminate charity’: providing help to people who were unwilling to help themselves. He preferred to support charities that strengthened individuals so they could become more independent and productive.  

This process is complex and it is at this stage where potential philanthropists may feel overwhelmed or too busy. Like Elon Musk, the frustration leads to thinking that it is harder than it seems to donate money well. This is where a philanthropy consultant can take the frustration and complexity out of developing your giving strategy. A philanthropy consultant can bring back the joy in giving to ensure that it is the best thing you ever do.   

Global Philanthropic has convened some the world’s leading philanthropic organisations and academic institutions for Talking Philanthropy: Asia-Pacific — Supporting a Philanthropic Ecosystem on 14 May 2021. The theme for the forum will bring together leaders in philanthropy from the region and around the world to focus on the structural issues around philanthropy in Asia-Pacific. Talking Philanthropy will provide a macro perspective on the key issues that need to be addressed in the Asia-Pacific region to allow philanthropy to grow and flourish.   

Event partners include the Lee Kuan Yew School of Public Policy at the National University of Singapore; the Centre for Strategic Philanthropy at Cambridge Judge Business School at the University of Cambridge; the Bill & Melinda Gates Foundation; the United Nations Foundation; and conservation charity BirdLife International. Billionaire is the media partner.  

 Learn more at www.globalphilanthropic.com/talking-philanthropy