Philanthropy

Has long been a part of HNW advisory services. However, philanthropic giving and charity spending has become more mainstream, in part due to:

  • The Gates Foundation massive resources, ambition and publicity
  • Warren Buffets donation of $31 billion to the Gates Foundation
  • Rock Star Bonos campaign to cancel Third World debt to developed nations
  • Various private initiatives and foundations

The act of donating money, goods, time or effort (time, talent or treasure) to support a charitable cause, usually over an extended period of time and with a defined objective is a challenging task. How to promote sustainable human development or improve human quality of life over time?

EWM can advise and assist in strategic planned giving; establishing, structuring and managing private foundations and charitable trusts for example. EWM will also arrange introductions to international organisations for those interested.

For all philanthropic activities, EWM take a performance based approach. There must be metric or measurements in place to measure the impact of any philanthropic human development work and these metrics must be reported on a regular basis. "Performance Based Funding" has become something of a buzzword in the industry. Introducing rigour into the process has proved more challenging. EWM have a similar philosophy to philanthropy as to investment management;

  • There must be a measurable return to funds invested
  • A target return must be defined in advance and communicated to the recipient(s) of funds

Those entrusted with investment funds must show and be able to substantiate return on investment. Those entrusted with funds for human development must be able to do the same.

For more, see target return for philanthropy.