Philanthropy has been in existence for the longest time. Its growth over the years has been fuelled by the filthy rich finding great satisfaction in bringing joy to other people through donations. In an era where issues are always cropping up, knowing how and where to donate for maximum impact can always be challenging.
The proliferation of philanthropy consultant services is the latest catalyst behind an uptick in corporations getting involved in philanthropy work.
Philanthropic Consultants Guide
Philanthropy consultants are simply individuals or teams that donors or corporates turn to when getting involved in charitable projects. Such professionals play a crucial role in guiding interested donors through impact investing.
“Philanthropy advisors help donors understand the need to participate in charitable projects. And how they’re likely to improve their philanthropic outcomes. How to contribute to charitable goals is usually their ultimate goal,” The Altruist League’s Managing Partner Ekaterina Chernova.
Corporates engage philanthropic advisors for single or limited projects. The size and scope of services offered by Philanthropy advisors are dependent on what corporate wishes to achieve.
Some of the services provided are influenced by multiple factors such as objectives, time horizon, and the resources that corporate wishes to donate. Additionally, Philanthropy services are always customized to meet corporates objectives and wants
Philanthropy consultants are helping institutions and corporates design, build and implement their desired philanthropic projects. Philanthropy advisors help corporates understand the issues . And where to invest in addressing them.
To help corporates understand issues and invest in them, philanthropy advisors provide much-needed insight in designing strategy. Advisors listen to donors and what they wish to achieve with their charitable donations and provide much-needed advice. Their support goes a long way in shaping and bringing corporate ideas. To fruition, thus helping translate them into action.
Strategic philanthropy advisors help firms focus on making tactical decisions when it comes to granting making. In this case, the donors are equipped with all the necessary data and skills needed to find and disburse funds where possible. The firms have also provided the donors with skills and resources to track how their donations are being used.
Some Philanthropy advisors firms focus on outcomes. In this case, they maintain the highest level of discipline in monitoring and evaluation of philanthropic projects.
According to The Altruist League’s President Milos Maricic, “philanthropy consultants need to understand all these distinctions to stand out in the highly competitive field. By doing so, such firms will stay informed about the transformations taking place in the philanthropy world.”
Identify Opportunities and Carry Out Plans
Some corporates have a clear idea of some of the causes that are likely to work for them. However, they still need assistance in finding the right opportunities that will have the biggest impact. Philanthropy advisors are always at hand, leveraging their deep expertise and connections to match corporates’ charitable visions and suitable projects.
Strategic philanthropic advisors come in hand in structuring how to go about charitable donations for maximum impact. Additionally, they help the corporates evaluate the impact of their contributions. Therefore, results-oriented philanthropists can always turn to philanthropic advisors to assess the impact of their donations for better long-term outcomes.
Coordinate with Financial advisors
While a philanthropy consultant’s primary goal is to design and implement philanthropic projects, they also work hand in hand with financial advisors. Similarly, they work with financial advisors, tax attorneys, and estate agents in helping donors determine which assets to give to charity.
Philanthropy Consultant Impact
Philanthropy consultants have been the driving force behind increased capital allocation by corporates into charitable projects. In the U.S, alone corporates and organizations donated more than $400 billion to charities in 2019, representing the highest capital allocation in decades.
Most of the donations went towards religious organizations, with education groups accounting for the second-largest share. Human services groups also continue to draw in huge amounts in charitable contributions.
The word philanthropy is changing as corporates acknowledge that their donations can help address some of the issues that have clobbered the human race and environment for decades. Amid the increased focus on sustainable investing, corporates are also directing huge sums of money into projects that have the prospect of helping the communities and benefiting the environment.