Expert shares how to help young philanthropists drive change, make an impact
When Diane Higginbotham recently spoke to a group of professional advisors at the Community Foundation, she told the story of a jam vendor who would put out six samples for potential customers to taste and get a coupon.
About 30 percent of the time, they ended using the coupon to make a purchase, she said. But when the same vendor put out 24 jams, the coupon usage went down to three percent.
“So many choices does not make it easier,” said Higginbotham at a recent presentation hosted by the Community Foundation called “Philanthropy for the Next Generation.”
Higginbotham is a senior consultant with 21/64, a Houston-based non-profit advisory firm that focuses on providing multigenerational advising, facilitation, and training for next generation philanthropic engagement, especially within family philanthropy and other family enterprises.
Her talk offered professional advisors tips on how to better work with young clients. It sought to address the following question: As younger generations begin to build — and inherit — great wealth, how can we best support and engage the Gen X and Millennial philanthropists who will shape the world?
Higginbotham equated the story of the jam vendor to the millions of nonprofit choices potential philanthropists can choose from when deciding who and what to support. So many choices paralyzes them, she said.
To better define philanthropic choices, Higginbotham advised an audience of about 50 estate lawyers, financial advisors, and others to help clients understand their values. If they know that, they can be more effective in philanthropy, she said.
For the next generation donors, advisors will want to know how they think and what they want to get involved in to better direct them. They prioritize impact and want to innovate whereas older philanthropists are often driven by obligation, Higginbotham said.
Among her tips to better engage younger philanthropists, she said that professional advisors should understand that they want to work in multi-generational, team settings; they’re willing to takes risk and to make changes; and that they anchor their giving with their values.
For those that want to learn more details, Higginbotham suggested a book co-authored by 21/64 co-founder, Sharna Goldseker, and Michael Moody, the Frey Foundation Chair at the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University called Generation Impact: How Next Gen Donors Are Revolutionizing Giving.
