From Traditional Philanthropy to Purpose-Driven Advice
Philanthropy has changed dramatically in recent years. The traditional model has proved 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.
The “New Math” of Amplifying Impact: 1 + 1 + 1 = 4
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 attack 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 PNC Private Bank.