Philanthropy has changed dramatically in recent years. The traditional model has proven to be inadequate to meet the challenges and achieve the goals of today’s families.
Since the late 1960s when the tax code changed to allow deductions for charitable giving, philanthropic advice focused solely on immediate income and estate tax planning concerns.
As such, the advice was based on an assumption that wealth has a binary function: either to earn more money or to be given away. That “two-pocket” mindset no longer fits purpose-driven families. Instead, a “one-pocket” mindset allows for the deployment of capital according to one’s unique values and goals. One-pocket thinking encourages using one’s resources in innovative ways to solve a wide range of important issues.
PNC Private Bank HawthornSM has developed a modern approach to purpose-driven advice focused on both philanthropy and impact to help families put purposeful intentions into action. Our dedicated Philanthropy & Impact team uses a nuanced discovery process called Amplify Impact to help connect wealth to purpose: The Why & What modules, through a set of short surveys and conversations, provide an insightful path to understanding How to put it all together. The result: mapping out which vehicles to use and resources to deploy.
WHY Module: We will begin with one of our team’s philanthropy advisors guiding your family through four short questions, intended to illuminate connections among family members. Your answers will result in an Impact Statement, an over-arching purpose statement that will drive decision-making and prevent losing sight of the mission long-term.
WHAT Module: After finalizing the Impact Statement, the philanthropy advisor will help you decide what capital you want to deploy by leading exercises to identify your goals, priorities, NextGen and responsible investing needs. During the summary session, the philanthropy advisor will describe various options and suggestions based on data earned during the exercises.
HOW Module: The Amplify Impact Report summarizes the findings from both the Why and What Modules into actionable takeaways. Your Wealth Strategist and Investment Advisor will work with the findings in the Amplify Impact Report to map out the best implementation plan – optimizing your preferred capital deployment strategies with an eye to tax efficiency. It’s important to remember that putting purpose into action can take multiple forms. Making grants to charities is just one way to have an impact in the world.
Philanthropy alone cannot solve our biggest problems. Responsible Investing alone cannot solve these issues either. However, TOGETHER they can deploy more capital across a spectrum of solutions to attach the problems at their root causes. Add on the Purchase Power of consumers and we have an Amplified Impact approach that anyone can tailor to individual values.
This modern approach offers a more flexible set of tools—any or all of which can be deployed as meaningful, purpose-driven catalysts for change.
In devising an Amplified Impact Strategy, your family will make values-based decisions that create a regenerative ecosystem as opposed to depleting resources in a binary system. The choice is yours and your options are virtually limitless.
Invest according to values. Deploy capital across the spectrum. Reinvest earnings.
Earn new monies by working for or starting companies reflecting one’s values.
Give wisely. Deploy the right capital source to solve the problem. Grants are not always the best option.
Spend according to values. Buy local vs. big box. Natural fiber clothes vs. synthetic. Rethink your vendor policies.
To get help exploring and implementing your purpose, contact your PNC Private Bank Hawthorn Advisor.
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