Dear Reader,

We often hear philanthropists wrestle with strategy around their philanthropic purpose, their pace of giving and their budget. 

• “I would like to give my money away while I am alive so I can see the impact.”
• “There is so much need in the world today, shouldn’t I give away my money as quickly and effectively as I can?”
• “I view my philanthropy as long term societal risk capital. I should responsibly plan for today’s needs as well as tomorrow’s pressing issues.” 
• “Stewarding philanthropic resources in perpetuity will honor our family’s legacy and values while keeping our family connected.”

The “Giving While Living” concept has gained more traction and notoriety in recent years with leaders like Yvon Chouinard (founder of Patagonia) and the Kendeda Fund leading the way. Philanthropists in this space are motivated by:



• Funding urgent needs they see such as climate change, dire poverty and educational outcomes. They ask, “If not now, then when?”
• Deploying a large amount of resources quickly to address needs 
• A desire to see the impact of their philanthropy and govern philanthropic strategies while alive
• A discomfort with accumulated wealth and wanting to share generously with those in need

Setting up a shared family philanthropy in perpetuity is a more traditional approach. Families seed a private foundation or donor advised fund from which they contribute a small percentage annually. Philanthropists choose a long term spending strategy to:



• Make a “big bet” over time that cannot be easily solved in one generation
• Preserve risk capital for future, unforeseen needs tied to a particular community or issue area
• Sustain leadership, advocacy and collaboration on specific issues 
• Keep a growing family connected to a place of origin, family legacy and values, and each other

What's the Right Answer: To Spend Down or Not?

There are compelling reasons for setting up a philanthropic strategy to spend down and equally compelling reasons for creating a philanthropic vehicle to remain in perpetuity. There can be middle ground in answering the timing question. Perhaps the philanthropic mission exists for one generation beyond the founder or the annual payout rate is higher than the norm of 5% which puts an obvious time horizon on sunsetting the family's collective giving.

The Bottom Line

Our advice is to ground these decisions in your mission, values and goals for your philanthropic impact. Be adaptable to changing circumstances within your family, community and issue area. For example, family philanthropies evolve as family branches grow and present new challenges and opportunities. Issue areas may command greater resources on a shorter time horizon. Either instance may accelerate decisions around a philanthropic timeline.

To learn more, visit the Bridgespan Group's website featuring Remarkable Givers. Hear in their own words how and why philanthropists are making decisions around timing.

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