“Instead of having people pitch worthy projects to the foundation, the board of a foundation can decide to do something big. They want to get a bang for their buck in an area that is important to them,” Snow says.
Snow says many entrepreneurs leave their business hats at the door when they start thinking about philanthropy. Instead, they should address philanthropy using the same skills that made them successful in business.
“Philanthropy, like the tech industry circa 1980, is ripe for innovative disruption,” Snow says in the guide. “Given the immense problems challenging the world—environmental degradation, ethnic and religious conflict, hunger, disease, and poverty—there is an urgent need for vision.”
Snow advises funders to decide on an issue that is of utmost important to them and then do the research. If it is a rare disease that the foundation wants to eradicate, find out who is funding research and what is already being done. Pick an area that is being overlooked and find out how to fill in the gap.
“Not only will you avoid wasting money on ineffective approaches or duplication of other efforts, but you might find some likely partners and allies,” the guide says. Set goals that are attainable and measurable and assess progress at all stages, not just at the end.
“With a private foundation, there are almost limitless tactics at your disposal. Therefore, to reach your goals, there’s no need to confine yourself to ‘plain vanilla’ grants. Instead, consider a whole range of options: advocacy, media campaigns, awards and scholarships, program-related investments, research or polling, litigation, demonstration projects, coalition building, documentary film, and much more,” Snow advises in the guide.
“The financial advisor is the natural person to bring up the idea of creating a foundation and helping to focus its efforts, rather than waiting for the client to bring it up,” Snow says.
“This helps the advisor exceed the typical financial relationship and be connected with their clients on a more personal level. Foundations also become a way to connect with the next generation in the client’s family,” Snow says.