Philanthropist Melinda French Gates recently made headlines when she announced she was formally stepping down from the Bill and Melinda Gates Foundation. Notably, it was reported by NBC News that she will retain “$12.5 billion that she plans to put toward her ongoing work supporting women and families.”
With (perhaps) a clearer path ahead and a resolve to be hyper-focused on her core areas of support, Gates’ announcement provides strong lessons for current and future philanthropists about the importance of having a plan, being willing to pivot and always aligning your vision with your funding abilities.
Her success affirms that with a plan, a focus area and the knowledge of which partnerships to pursue (or leave), both current and future philanthropists can greatly improve their impact.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Lesson #1: Always have a plan.
A philanthropic fund can be utilized most effectively when there is an alignment with values, passions and interests. Philanthropic planning allows individuals and organizations to make a thoughtful and strategic approach to charitable giving and to help maximize their donations' impact.
This includes developing an investment policy statement, asset allocation and portfolio construction, fiduciary compliance and oversight, risk management, family legacy planning and customized reporting and analysis for your investment committees.
Starting with a well-thought-out plan helps to ensure that resources are directed toward causes that resonate deeply with you, increasing the potential for meaningful impact. Having this plan in place helps you stay on target for your charitable giving goals now and in the future.
Indeed, as a leader who has centered her work on improving the lives of women and children, Gates has been steadfast in her commitment to supporting the next generation of female leaders. As she began to identify the severe lack of funding for women founders, she launched Pivotal Ventures to invest in early-stage companies led by women.
Lesson #2: Autonomy can be a superpower.
Sometimes, partnerships that start off on the strongest footing will no longer serve you. In the Gates Foundation example, this could be the dissolution of marriage between two founders, or more commonly, breaking ties with a trusted adviser. Indeed, the Gates Foundation made an incredible impact in its decades of existence, but the divorce of its founders certainly shifted the relationship and communication style.
Philanthropists must be flexible and willing to pivot when necessary to ensure their contributions have the greatest impact. According to Philanthropy Miami, “Flexibility goes beyond mere survival — it enables nonprofits to thrive in times of change. By embracing a mindset of flexible leadership, nonprofit leaders can foster a culture of resilience and innovation within their organizations.”
While seeking professional advice and collaborating is essential, philanthropists should not be afraid to go it alone if the original plans or partners aren’t aligned with their goals. This autonomy can empower philanthropists to pursue their vision more effectively and innovatively, attracting new partners as their goals and values evolve.
Lesson #3: Double down to effect the greatest change.
Over the past 20 years, the Gates Foundation has donated $53.8 billion to fight poverty, disease and inequity worldwide. While they have certainly made tremendous strides in those areas, these issues have not yet been eradicated.
Philanthropy is an ongoing endeavor with vast, seemingly endless, amounts of money needed to tackle some of society's biggest challenges. One thing is clear: While easy, micro philanthropy (small sums donated at cash registers or round-up opportunities) will not move the needle.
To effect change, philanthropists must do the deep work to figure out what they love and where they want to help. Open Philanthropy suggests considering the following three factors when evaluating an area to fund:
Importance. How important is this focus area, and how many people are affected?
Neglectedness. How neglected is this focus area?
Tractability. Are there clear ways a funder could contribute and make significant progress?
Gates’ commitment to supporting women and families reflects a concentrated effort to address specific issues that are important to her. By doubling down on these core areas of interest, she exemplifies how focusing on fewer areas can create a more significant and lasting impact compared to spreading resources too thin across numerous smaller initiatives.
It’s clear that in her next chapter, Gates’ impact and influence will continue to grow. By following her model, current and future philanthropists also have a great opportunity to mold a better world in their vision.
ALINE Wealth is a group of investment professionals registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.
Third-party links and references are provided solely to share social, cultural and educational information. Any reference in this post to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this post to the website of another party, do not constitute or imply the endorsement, recommendation, or favoring of ALINE Wealth or Hightower Advisors, LLC, or any of its affiliates, employees or contractors acting on their behalf. Hightower Advisors, LLC, do not guarantee the accuracy or safety of any linked site.
Related Content
-
Are You a Retirement Millionaire Too Scared To Spend?If you are too scared to spend money in retirement, you may be saddled with regret. Here are three ways to safely enjoy your sizable retirement nest egg.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social SecurityTreasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
-
Seven Questions to Ask When Evaluating Personal Loan OptionsTaking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
-
The Three Biggest Fears Keeping Retirees Up at NightHere are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
-
What Can a Donor-Advised Fund Do for You? (A Lot)DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
-
Estate Planning When You Have International AssetsEstate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
-
Three Essential Estate Planning Steps to Protect Your Nest EggAfter dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
-
Is Chasing the American Dream Ruining Your Financial Life?Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
-
Retiring With a Pension? Four Things to KnowThe road to a secure retirement is slightly more intricate for people with pensions. Here are four key issues to consider to make the most out of yours.
-
How to Teach Your Kids About the Tax Facts of LifeTaxes are unavoidable, so it's important to teach children what to expect. Also, does your child need to file a tax return for 2024? Find out here.
