A Passion for Giving Tools and Inspiration for Creating a Charitable Foundation

Peter J. Klein, CFA, is a Senior Vice President of Investments with UBS Financial Services. In addition, he has been the President and Treasurer of The Claire Friedlander Family Foundation since it was first established in 2008. He is the author of Getting Started in Security Analysis, published by Wiley. Through his career, he has been called upon for multiple media appearances to discuss investment strategy, analysis, and related financial services.

Angelica Berrie is President of The Russell Berrie Foundation, which has made transformational gifts in the field of diabetes and nanotechnology. She is Chairman of The Center for Interreligious Understanding. Her entrepreneurial pursuits include her role as CEO of Kate's Paperie, an iconic New York retail store, and Chairman of Global Nomad in Hong Kong.

Acknowledgments xv

Part I So You Want to Be a Philanthropist 1

Chapter 1 Estate Planning and Charitable Giving 7

Estate Planning 101 10

The Estate Planning Process 17

Case Study—Estate Planning 101 18

Summary 20

Chapter 2 Charitable Giving 21

What Is a Nonprofi t Entity? 23

Due Diligence 24

Digging Deeper 27

Donor Advised Funds (DAFs) 31

Community Foundations 37

Summary 40

Chapter 3 Starting a Private Foundation 41

The History of Private Foundations 42

Leaving a Stated Mandate for Future Generations 46

Modern History of Private Foundations 48

Creating a Private Foundation 50

Form 1023 58

Guiding Documents 59

The Mission Statement 62

Code of Ethics 64

Be Proactive and Know Your Charities 65

Summary 66

Chapter 4 Managing a Private Foundation 67

Form 990-PF 68

The Foundation’s Board and Governance Issues 79

Summary 87

Chapter 5 Managing a Private Foundation—Grant Making and Operations 89

Type of Support: Periodic versus Endowments and General versus Program-Based 91

What Type of Foundation Will We Become? 93

Sourcing a Grant 97

The Acknowledgment Process 100

The Pre-Proposal Briefi ng Form (PPBF) 102

The Due Diligence Process 109

Progress Reporting and Evaluation 116

Summary 120

Chapter 6 Investment Management for Private Foundations 123

The Investment Management Process 124

“Why Is the Investment Management Process Important to Me?” 126

The Investment Committee 127

The Investment Policy Statement 130

Addendums to the Investment Policy Statement 145

Manager Search and Implementation Phase 150

Communication 152

Summary 155

Part II A Passion for Giving 157

Lessons in Philanthropy

Chapter 7 The Gift 165

Philanthropy as the Gift of Who You Are Giving Begins with the Self 165

What Are You Most Passionate About? 166

The Greatest Gift 168

Summary 169

Chapter 8 Purpose 171

Ken Behring’s Story

Introduction by Glen Macdonald, President of the Wealth and Giving Forum 171

“Somebody Told Me about the Word Purpose” by Ken Behring 174

Summary 179

Resources 180

Chapter 9 The Gifted Giver 181

Lessons from Peter Karoff (Chairman and Founder of The Philanthropic Initiative) with Insights from Joel Fleishman (Professor of Law and Public Policy at Duke University)

The Philanthropic Learning Curve 182

Ambitious Goals and Big Ideas 183

The Gifted Giver 187

The Transformational Gain of Giving 190

Summary 191

Resources 192

Chapter 10 The Power of One 195

Lessons from Lisa Nigro (the Inspiration Corporation) and Chip Paillex (America’s Grow-a-Row)

The Inspiration Corporation 196

America’s Grow-a-Row 199

Summary 203

Resources 203

Chapter 11 The Feminine Principle—Women Leading through Philanthropy 205

Lessons from Peggy Dulany (Founder of Synergos Institute), Ellen Remmer (President and CEO of the Philanthropic Initiative), and Monica Winsor (Vice Chair, Women Moving Millions)

Women as Change Agents 206

Peggy Dulany’s Story 208

Ellen Remmer: How Women Are Transforming Philanthropy 211

Monica Winsor’s Story 212

Summary 215

Resources 215

Chapter 12 Empowering the Next Generation 217

Lessons from Sharna Goldseker (Vice President, Andrea and Charles Bronfman Philanthropies, and Director of 21/64), Ruth Cummings (Chair, the Nathan Cummings Foundation), and Lance Lindblom (President and Chief Executive Officer, the Nathan Cummings Foundation)

Sharna Goldseker’s Story 217

Four Generations of Giving: Lessons from the Nathan Cummings Foundation 221

Summary 232

Chapter 13 Philanthropists as Explorers 233

Lessons from Scott McVay (Founding Executive Director of the Geraldine R. Dodge Foundation, and 16th President of Chautauqua Institution), Aimee Morgana (Founder of the N’kisi Institute), and Paul Winter (Founder of Music of the Earth, Inc.)

Scott McVay’s Story 234

The Journey of Discovery: Aimee Morgana’s Story 236

The Grand Symphony of Life: Paul Winter’s Story 238

Summary 241

Resources 242

Chapter 14 The Journey from Doing Good to Making Change 243

Lessons from Christine DeVita (President, the Wallace Foundation)

A Passion for Learning and the Arts 243

Learning from Mistakes 245

Strategy and Listening to Feedback 246

Summary 248

Resources 249

Chapter 15 Heart and Soul 251

Lessons from Amy Goldman (Chair and Executive Director of the GHR Foundation), and Lynn Schusterman (Chair of the Charles and Lynn Schusterman Family Foundation)

Amy Goldman’s Story: Interfaith in Action 251

Lynn Schusterman’s Story: Three Thousand Years of Jewish Giving 255

Summary 258

Chapter 16 The Philanthropic Journey 259

A Vision for Change 259

Summary 262

Resources 262

About the Authors 263

About the Participants 267

Index 287

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