charity

How Philanthropy Helps Family Businesses

April 28, 2015 by James Hickey, PhD

Participating in charitable efforts is an important aspect of running a family business. This may mean giving money or time to a cause. By having a focus in philanthropy, the business can thrive in several areas.

According to a survey administered by EY and Kennesaw State University, statistics show that philanthropy is a part of family business in several ways. First, of the world’s largest family businesses, 81% practice philanthropy. The amount that have a family foundation is 47% and 37% want to contribute more to causes.

Families can use their engagement in philanthropic efforts to tighten their bond and continue valued traditions through generations. Philanthropy is valuable because it shows the world the key things that are important to that family.This type of work also encourages people who aren’t tied into the business to get involved. It may also be a part of displaying pertinent beliefs that could be tied to religion, for example.

Philanthropy is an area of life that encourages the involvement of everyone. Anyone with an interest can make an impact and is welcome. It also shows that the company is contributing to the future of the world of which it is a part. For younger members of the family, core principles that philanthropy offers may include training for their future and the chance to understand business matters. They will be able to explore these things outside of the perhaps strict guidelines set up by their parents.

The Rockefeller Foundation is a good example of this overall idea. For a family that became recognized over 100 years ago, this foundation is a means for all the members to contribute to society together. To learn more about the potential difference families can make in their business, they should research impact investing. This idea stems from philanthropy and some of its torchbearers include the Rockefeller Family.

More information can be found from Forbes online here.

Preparing Your Finances Before Giving to Others

March 25, 2015 by James Hickey, PhD

In order to help others, it is important to have your own finances in order. A financial advisor is a valuable tool in achieving your financial goals and planning the best way to contribute to philanthropic causes. This person can be an informative source on the different options available for investments, for example. Before settling down with one pick of a financial advisor, there are a few questions you should explore.

Education

Being a financial advisor comes with a choice variety of different certifications. It is important to find out what credentials your selection has before deciding to commit to that person. Each type of license comes with different specializations and it is imperative to match that financial advisor’s skillset with what you need.

A few examples of certifications may include Certified Financial Analyst (CFA), Certified Financial Planner (CFP), and Certified Investment Manager (CIMA). In addition to matching the skillset with your personal requirements, it may be important to complete a check of the advisor’s compliance record to ensure their licenses are up to date.

Services

Understand the difference between the services an advisor offers and see if that is what you’re seeking. You may have to compare services such as comprehensive financial planning, investment, and money management. If you are seeking someone to oversee the full range of your finances, it will be key to have an in depth understanding of how that will function. Also find out more about previous clients the advisor has assisted. This will provide insight into whether this financial advisor has prior experience with a situation similar to yours.

Trust

Building a closeness with your financial advisor is a valuable part of this type of relationship. Details related to personal finances can be very private, and to share them requires a sense of trust. Look for traits such great listening skills and shared interests. Often, feeling confident and secure in this type of relationship is more important than any academic credentials.

Philanthropy in the Fashion World

January 15, 2015 by James Hickey, PhD

Fashion and philanthropy are often viewed as two areas on opposite sides of the spectrum. Consumers looking to feel good about themselves may venture to the mall on a Saturday to pick up an outfit aimed to fulfill desires perceived as selfish. Whereas, charitable efforts often involve the selfless giving of one’s time and money. It seems that within the past few years, these two avenues have found a way to successfully intersect. Popular clothing designers with causes close to home are pioneering ways to join fashion and alms giving.

Shopping frequently involves an element of indecision. An endearing shirt may risk being left behind due to higher pricing than what the customer expected. However, notifying this particular shopper that 30% of the cost will benefit a particular charity may have this person think twice. Tommy Hilfiger, for example, is a designer who promotes autism research. Knowing the challenges his autistic son faces, he was sure to implement philanthropic fundraising into his own life’s work in fashion. As a result, shoppers can feel a greater sense of gratification through their clothing and accessory purchases.

The model mentioned above is only one way charities can benefit from retail purchases. Some organizations have centered their entire business format around contributing to a specific cause. Founder, Blake Mycoskie created TOMS with a charitable mission in mind. After visiting Argentina, he took note of the children of villages that were without shoes. This inspired the “One for One” format of his business. For every pair of shoes bought by a consumer, one pair of shoes gets sent to a child in need. TOMS customers know they are aiding a bigger plan when they purchase products. Strategies like this have elevated the shopping experience to where it is not only a selfish act, but one that has the power to benefit others in need.