Category Archives: Philanthropy

$30 Billion: The Endowment Needed To Close The Annual Associate’s Degree Gap Between African American Men-Women

Posted on May 27, 2025 by | Leave a comment

By William A. Foster, IV

“Dear Young Black Males… Always remember to hold your head up high, and NEVER doubt who you are. Believe in yourself SO much that other people’s negative words, opinions, and energy won’t discourage or hinder you.” – Stephanie Lahart

African Americans continue to be the only group where the women outnumber the men in terms of employment. The systemic reasons for this abound and not particularly the focus in this piece, but one of those areas is certainly educational obtainment. Whereas African American girls are in large part taught to focus on mental and academic achievement as a means of success, African American boys are taught to focus on physical and athletic achievement as a means of success. The two most notable gaps are at the Associate’s degree and Doctor’s degree levels where there is a difference of 350 basis points and 390 basis points, respectively. While it would be nice to see more African American young men getting Bachelor’s degrees, from an economic reality, simply getting more of them with an Associate’s is cheaper and faster in terms of return on investment for the community.

Enter the 10 HBCUs that are community or technical colleges along with UDC who has community college division while still being a 4-year institution. This collection of HBCUs represents a network of community and technical colleges dedicated to providing accessible, affordable education and workforce development opportunities. Focused on serving African American communities, these institutions offer associate degrees, certificates, and vocational training programs. There is also the opportunity to create a pipeline to four-year HBCUs or direct entry into the workforce. They emphasize community enrichment, economic mobility, and leadership development, often incorporating faith-based or mission-driven values. Collectively, they play a vital role in empowering individuals and strengthening the communities they serve.

As of 2021-2022 according to NCES, there is an approximately 50,000 Associate’s degree gap between African American Women and Men (Table Below) with women obtaining almost 85,000 Associate degrees annually and men obtaining just over 37,000 Associate degrees annually. The major obstacle to these 10 HBCUs closing the gap is what ails most systemic issues facing African America – finances. These 10 HBCUs have an average tuition cost of $6,500 and median tuition cost of $5,300. But in order cost of attendance is a far more accurate because it includes the ability to pay for residence be it on-campus or off-campus, meal plans, books, and other necessities of educational obtainment. The average and median for that related to these 10 HBCUs is approximately $20,000 which is inclusive of the tuition and fee cost. This cost of attendance is due to both the low cost of tuition at two-year institutions in general and these HBCUs being located in affordable towns as a whole. However, it maybe a lot to ask if the goal is to truly incentivize enough African American Men to take two years if they were not intending to and by the numbers many clearly are not intending to go to college even for an Associate’s degree without a cherry on top. Simply ensuring they have full tuition and room/board is enticing, but it is likely not enough. If we look at this as a salary, then paying African American Men $20,000 a year to be students is probably not going to cut it. However, pushing that number to say $30,000 a year with a disposable income of $10,000 per year could be enough to bring many into the fray.

Here is the math of getting to $30 billion. Assuming our endowment for this program can generate 5% annually, then it would take $600,000 in principal to generate the $30,000 necessary per student. That is $600,000 times the 50,000 gap we need to close annually or $30 billion. Enough to generate $1.5 billion in interest. At current, there are no African American institutions that are either non-profit or for-profit valued at $30 billion. Howard University has the largest African American non-profit endowment and it is just under $1 billion. World Wide Technology is the most valuable for-profit firm at $20 billion and its African American ownership in the firm at 59 percent makes his stake worth approximately $12 billion.

There is even an argument that should this miraculous endowment appear if it should be spent on African American men ages 18-40 or if it should be focused on African American boys where you could provide supplemental education and academic investment at a far earlier age where you would need to spend a fraction of the $30,000 to get impactful long-term results. While there is a firm argument for this, my answer is resoundingly no. It should and would need to be spent on the 18-40 year old age group. The reason why is simple. African American Women need help now. The gap that has existed for sometime now has caused a crisis in the community with African American women being unable to find African American men that are suitable partners, the overweight responsibility of economic burden they carry, and much more. The closing of the gap is worth $7,700 in increased earnings per African American man who upgrades from a high school diploma to an Associate’s degree or $385 million annually if simply brought in balance with the number of Associate’s that African American Women earn.

The burning question of course is where we get $30 billion in assets from that can produce $1.5 billion annually (a 5 percent return). Unless someone is secretly hiding 300,000 bitcoins, they bought for $0.01 many years ago that are now worth $30 billion there may be no real solid answers. Time is of the essence so the notion that we are going to slow roll our way there as we do with most everything else financially is a nonstarter and just more of the same issues. Government funding is also almost certainly not an option given that regardless of political party very little has been done to rectify systemic issues that face African America. One party would like to give us nothing despite the fact that we pay into the tax system and the other party gives us symbolic and lip service. For context, there are only 5 university endowments that are greater than $30 billion.

In the end, the truth of the matter is this will not be solved by a single endowment or a single organization. However, $30 billion in a collective effort across multiple organizations coordinating with this goal may in fact be possible and pragmatic. With almost $2 trillion in buying power in theory the resources are there – sort of. Buying power can be very misleading because it does not actually speak to disposable income of the African American community. The money that is leftover after the bills are paid. Much of African America’s $2 trillion has very little leftover once you account for needs and necessities of African American households. This actually speaks quite a bit to African America’s buying power only account for almost 11 percent of America’s $18.5 trillion in buying power, but accounting for almost 14.5 percent of the American population. The $2 trillion should be closer to $2.7 trillion. That is $700 billion essentially “missing” from the African American households. Needless to say, it would a lot easier to find that $30 billion there.

A collective and strategic effort is necessary to bridge the Associate’s degree gap between African American men and women. While a $30 billion endowment seems daunting, the solution lies not in a single source of funding but rather in a coordinated approach involving multiple organizations, institutions, and innovative financial strategies. Leveraging partnerships with HBCUs, African American financial institutions, and philanthropic networks can help mobilize the resources needed to generate meaningful change. Furthermore, targeted outreach to influential individuals, businesses, and community leaders can catalyze fundraising efforts.

The focus must remain on providing African American men with the financial support necessary to pursue educational opportunities. By directly investing in their economic advancement, the ripple effect will extend beyond individuals to families and communities. The $385 million annual increase in earnings resulting from closing the Associate’s degree gap underscores the profound economic impact of this initiative. Equally important, this investment addresses the broader social and relational imbalances that have burdened African American women for decades.

Achieving this ambitious goal will require innovative thinking, sustained advocacy, and bold financial commitment. However, with collaboration and purpose, empowering African American men through education can yield lasting benefits for the entire community, fostering stability, opportunity, and generational wealth.

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When the Numbers Don’t Add Up: Shannon Sharpe’s $10 Million Settlement (Offer) and Savannah State University’s $12 Million Endowment

Posted on April 23, 2025 by | 1 comment

“If we don’t support our own institutions, who will? Our future depends on it.” – Dr. Johnnetta B. Cole

In a society where celebrity controversy often overshadows institutional legacy, the recent $10 million legal settlement offer by Shannon Sharpe is notable not just for its allegations, but for what it inadvertently reveals about the chasm between Black celebrity wealth and the underfunded institutions that shape it.

Sharpe, an NFL Hall of Famer turned sports media luminary, is embroiled in a sexual assault lawsuit in April 2025 that has added fuel to the fodder over his public image for years. The allegations, dating back to 2021, accused him of sexual assault and misconduct. Though the terms of the settlement do not admit guilt, the figure—$10 million—is enough to reverberate well beyond the courtroom. Particularly for Savannah State University, Sharpe’s alma mater, whose entire endowment hovers just north of $12 million.

That a single lawsuit settlement could nearly eclipse the full financial endowment of a university—an institution that has educated generations of Black students since its founding in 1890—demands attention. It is more than legal coincidence; it is cultural commentary. Sharpe’s settlement and Savannah State’s endowment share more than proximity in value—they reflect a profound misalignment between individual Black success and collective Black institutional health.

Celebrity Capitalism vs. Institutional Capital

Sharpe’s alleged settlement offer arrives at a time when he is more visible than ever. From ESPN panels to viral podcast interviews, he has crafted a new media identity grounded in charisma, cultural commentary, and athletic credibility. He is a multimillionaire many times over, and for much of the public, a figure of Black excellence.

And yet, while the scandal has put his reputation into question, the institutional damage is more structural than sensational. Savannah State University, like most HBCUs, remains chronically underfunded. In Georgia, the flagship University of Georgia enjoys an endowment exceeding $1.8 billion. Savannah State’s $12 million looks less like a war chest than a coin jar.

This contrast is not unique. Harvard’s endowment, currently over $50 billion, generates more passive income in a single day than most HBCUs earn annually. Meanwhile, Black cultural, entertainment, and sports figures continue to accumulate individual wealth—largely without corresponding reinvestment in the institutions that launched their journeys.

In Sharpe’s case, it is particularly jarring. He has long spoken with pride about Savannah State, often positioning his ascent from a small HBCU to NFL stardom as proof of grit, talent, and perseverance. But the question remains: can Black America afford to celebrate individual ascent while its institutions struggle to survive?

Institutions as the Forgotten Priority

The logic of endowments is simple: they are long-term capital. Through careful management, they yield investment income that sustains a university’s operations—faculty salaries, scholarships, research grants, infrastructure. A $12 million endowment, assuming a 5% annual drawdown, provides just $600,000 per year. That’s not enough to fund a single major building renovation or hire a cohort of tenure-track faculty.

Yet for a fraction of what he has paid in legal settlements, Sharpe—or any number of successful HBCU alumni—could fundamentally change the trajectory of such institutions. This is not to single out Sharpe, but to highlight the imbalance. In an ideal world, the very wealth that is now being paid out in settlements would be instead building libraries, research labs, and scholarship funds.

This tension is particularly visible among athletes and entertainers. Black America’s most visible ambassadors often emerge from institutions that are themselves invisible in the national philanthropic conversation. According to UNCF, the combined endowments of all HBCUs total less than $5 billion. The Ivies, by contrast, hold over $200 billion in endowment assets.

Culture, Crisis, and the Limits of Individualism

Sharpe’s settlement speaks to more than a personal reckoning—it is a cultural moment. It raises questions about power, accountability, and how society arbitrates guilt and innocence outside the courtroom. But for the Black community, it should also prompt deeper reflection on how fame and fortune are managed—and how institutions are too often left behind.

There is a troubling pattern: institutions that produce Black talent are celebrated in name, while being abandoned in practice. Alumni homecomings become nostalgic affairs, rich in ritual but poor in revenue. HBCUs are used as cultural references in music and fashion, but rarely as investment priorities.

The result is that even as African Americans make gains in representation and cultural power, their institutions remain at risk of irrelevance or collapse. The stakes are not merely educational—they are existential. Without strong institutions, there can be no sustainable community power.

What a $10 Million Gift Would Mean

Imagine instead that $10 million were a donation, not a payout. At Savannah State, that amount would nearly double the endowment overnight. It could launch a center for Black media studies, a school of sports journalism, or fund full scholarships for dozens of students. It could digitize archives, attract talent, and fund study-abroad programs that broaden horizons.

Better yet, it could serve as a challenge grant—a call for other high-profile HBCU alumni to match it, dollar for dollar. Such a campaign could transform the entire financial landscape of HBCUs in a single generation.

There is precedent. Oprah Winfrey’s $13 million donation to Morehouse College, Robert F. Smith’s debt forgiveness gesture at Morehouse’s graduation, and Reed Hastings’ $120 million donation to Spelman, Morehouse, and UNCF during the racial reckoning of 2020 showed what’s possible. But sporadic generosity is not a strategy. What’s needed is a systemic culture of giving—an institutional ethos that reorients Black wealth toward Black infrastructure.

Moving from Scandal to Structure

Sharpe, like many public figures, is navigating a complex personal and professional moment. Settling a case of this magnitude inevitably invites scrutiny. But what comes next is more important. Can this moment be a catalyst—not just for personal reflection, but for public responsibility?

Celebrity scandals are ephemeral. Institutions, if cared for, are permanent. The opportunity now is for Sharpe—and others in similar positions—to pivot toward legacy-building. That means using their platforms not only to defend their names, but to elevate their alma maters. To protect not just brand equity, but intellectual capital. To trade spectacle for structure.

A Future Worth Investing In

Savannah State University is not just a school—it is a symbol of survival, intellect, and potential. Its alumni include judges, scientists, teachers, engineers, and businesspeople. It deserves more than to be a footnote in a celebrity controversy. It deserves capital, vision, and strategic philanthropy.

In the end, the numbers don’t lie. A $10 million lawsuit may capture headlines. But a $12 million endowment defines futures. The question is not what Shannon Sharpe did or didn’t do—but what he and others like him will do next.

If fame is fleeting and fortune unpredictable, then perhaps the wisest investment is the one that cannot be taken away: the institutions that built you.

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Could You Spend $30 Million In 30 Days on Us? How Monty Brewster Could Have Spent $30 Million with African American Businesses

Posted on April 18, 2025 by | Leave a comment

“And we’re in the business of being in business, and we’re doin’ business.” – “Monty” Brewster

The 1985 film Brewster’s Millions, starring Richard Pryor as Montgomery “Monty” Brewster, tells the story of a man who must spend $30 million in 30 days without accumulating assets or informing anyone of his goal in order to inherit $300 million. Adjusted for inflation, Brewster’s $30 million would be approximately $85 million in today’s dollars, while the $300 million inheritance would be worth over $850 million. While Monty’s spending spree involved extravagant parties, failed investments, and creative tactics to burn through cash, the film missed an opportunity to showcase meaningful economic empowerment strategies. By directing his wealth toward African American businesses, Monty could have positively impacted communities while still meeting the conditions of the challenge. This article outlines how Brewster could have spent his fortune effectively within the African American business ecosystem.

  1. Investing in Education, Arts, and Wellness for African American Communities ($1.5 million or $4.25 million in today’s dollars)

Monty Brewster could have channeled a portion of his funds toward HBCUs, African American arts organizations, and health initiatives. These institutions play a vital role in developing African American leadership, entrepreneurship, and cultural advancement. Brewster could have funded scholarships, financed infrastructure improvements, or supported specialized academic programs such as business incubation centers. Additionally, Brewster could have become a major patron of African American artists, musicians, and cultural organizations. Funding live performances, commissioning murals and sculptures, or sponsoring large-scale cultural events would have allowed him to inject cash into the creative sector while meeting the requirement to spend without accumulating lasting assets.

Health disparities have historically affected African American communities. Brewster could have supported Black-owned health clinics, funded wellness programs, or launched temporary mental health outreach initiatives. Sponsoring community health fairs and free medical check-up events could have aligned with his spending goals. To adhere to his challenge’s constraints, Brewster is limited charitable giving to $1.5 million. Within that budget, he could have made substantial contributions to civil rights organizations such as the National Center for Black Family Life, Black Teacher Project, and African American Credit Union Coalition. Funding advocacy campaigns, legal defense funds, and educational outreach programs would have ensured his spending aligned with causes that strengthen social equity. By underwriting public awareness campaigns or supporting temporary voter registration drives, he could have spent large sums while advancing civil rights initiatives.

  1. Supporting African American Media Companies ($4 million or $11.3 million in today’s dollars)

The media landscape has historically marginalized African American voices. Brewster could have spend money in Black-owned newspapers, radio stations, and production companies. By purchasing advertising space, sponsoring TV segments, or funding film productions that amplify African American stories, he could have spent millions while strengthening the narrative control of the community. This would have been especially true when he ran for mayor of New York City with his “None Of The Above” campaign which allows him to burn through millions.

  1. Empowering African American-Owned Interior Designers ($3 million or $8.5 million in today’s dollars)

Instead of investing in real estate projects with limited long-term impact, Brewster could have hired African American-owned interior design firms to revamp commercial spaces, restaurants, and event venues. Funding redesigns for offices, galleries, or retail spaces would have allowed him to spend significant amounts quickly while showcasing Black creative talent. Partnering with these designers to create temporary installations, pop-up exhibits, or themed public events would further align with Brewster’s spending objectives.

  1. Supporting Black-Owned Restaurants and Hospitality ($5 million or $14.2 million in today’s dollars)

Instead of squandering money on excessive parties with little social value, Brewster could have organized lavish gatherings catered exclusively by Black-owned restaurants, breweries, and event-planning companies. Hosting galas, networking events, or concerts powered by African American businesses would have rapidly spent millions while empowering these enterprises. Additionally, Brewster could have pre-paid months of reservations at Black-owned hotels for conferences, weddings, and events that celebrate Black culture.

  1. Promoting and Empowering African American Entrepreneurs in Technology ($4 million or $11.3 million in today’s dollars)

During the 1980s, technology was emerging as a transformative industry. Brewster could have directed funds to African American inventors, tech startups, and computer training programs. Sponsoring computer literacy drives in underserved neighborhoods, purchasing computers for community centers, or funding coding boot camps would have injected significant capital into this sector without violating the “no assets” condition. Additionally, Brewster could have launched a series of pitch competitions or startup grant programs to fund Black entrepreneurs. By awarding no-strings-attached grants to aspiring business owners, Brewster could have circulated his funds directly into the hands of innovative minds in the community. Creating a “Brewster’s Millionaire Fund” for new ventures would have established a lasting narrative of empowerment.

  1. Financing Black-Owned Transportation Companies ($4 million or $11.3 million in today’s dollars)

Brewster’s challenge required rapid cash outflows. He could have achieved this by chartering fleets of Black-owned transportation services, including buses, limousines, and taxis. Organizing free ride programs, senior citizen transport services, or back-to-school bus initiatives would have ensured meaningful community impact while fulfilling the spending requirements.

  1. Sponsoring Sports Teams in the African American Community ($4.5 million or $12.7 million in today’s dollars)

In the film, Brewster splurged on funding a struggling baseball team. He could have expanded this vision by sponsoring youth sports leagues, purchasing uniforms from Black-owned apparel companies, and financing travel expenses for underserved teams. By supporting athletics in underserved communities, he would have combined financial impact with social good.

  1. Creating Pop-Up Markets and Retail Experiences ($4 million or $11.3 million in today’s dollars)

To rapidly circulate cash, Brewster could have sponsored temporary markets that featured Black-owned businesses. By covering booth fees, marketing costs, and other overhead expenses, he could have injected cash into dozens of retail entrepreneurs. Such events would celebrate local artisans, designers, and vendors while creating a meaningful economic impact.

Monty Brewster’s dilemma of spending $30 million in 30 days presented a unique opportunity to create lasting change. By investing heavily in African American businesses, nonprofits, and community initiatives, Brewster could have met his goal while strengthening economic power in marginalized communities. Such a storyline would not only have showcased Brewster’s ingenuity but also highlighted the immense potential of targeted investment to uplift communities. If Hollywood ever revisits Brewster’s Millions, perhaps they will reimagine his spending spree as a transformative journey of economic empowerment.

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2023’s HBCU Million Dollar Gifts: No African American Million Dollar Gifts To HBCUs

Posted on December 21, 2024 by | Leave a comment

“Philanthropy is an exercise in power, by definition by the wealthy.” – Rob Reich

After an abysmal 2022, the HBCU Million Dollar Gifts list in 2023 bounced back? Well, sort of. In 2022 there were only three donations and now in 2023 there are five. Mathematically one would argue for that being a 66 percent increase, but then one realizes there were twice as many $100 million donations given or pledged to PWIs as there were $1 million donations given or pledged to HBCUs it throws water colder than the artic onto the conversation. Furthermore, one of those donations was pledged in 2023 by one Sean Combs who is now arguably in so much legal trouble that the pledge will likely never turn into a gift for its recipient, Jackson State University. To make the donation by Mr. Combs even more frustrating, it was the only one among the list by an African American further reinforcing that African American donors who can give million dollar donations are still not interested in supporting HBCUs with any fever.

The donations that did arrive went to the usual suspects of Howard (2), Spelman, and Tuskegee. Unless Spelman has a massive donation up its sleeve (and it is certainly possible), then Howard is going to coast to becoming the first HBCU to have a $1 billion endowment. To put in perspective how large the acute the donor crisis is between PWI and HBCU donors requires just taking a look at the largest 2023 donation by a donor. James Simons and Marilyn Simons gave a gift of $500 million to SUNY Stony Brook. A donation equal to over 50 percent of the Howard University’s endowment and over 90 percent of Spelman College’s endowment. Meanwhile, African America’s wealthy are virtually silent year after year.

There continues to be a massive disconnect of African America pouring resources into its own institutions. This is as true of the lack of African American donors to HBCUs as the embarrassment that virtually no HBCUs bank with an African American owned bank or even two premier HBCUs in Hampton University and North Carolina A&T University leaving an HBCU conference for a PWI one. The island mentality of everyone and every institution looking out for themselves while claiming they are for the community has reached a nauseating level year after year and should make anyone wonder if there is any reason to have hope. None of this fairs well for smaller HBCUs with the looming enrollment cliff crisis facing all American colleges and universities and for which HBCUs will certainly bear the brunt as with almost every crisis that America has.

Overall donations to all colleges and universities were down a second straight year in 2023 dropping from 275 to 259 Million Dollar Gifts.

$1 Million Plus Donations To All Colleges: 259

$100 Million Plus Donations To All Colleges: 10

$1 Million Plus Donations Value To All Colleges: $6.1 Billion

$1 Million Plus Median Donation To All Colleges: $10.0 Million

$1 Million Plus Average Donation To All Colleges: $23.6 Million

$1 Million Plus Donations To HBCUs: 5

$100 Million Plus Donations To HBCUs: 0

$1 Million Plus Donations Value To HBCUs: $45.6 Million

$1 Million Plus Median Donation To HBCUs: $10.0 Million

$1 Million Plus Average Donation To HBCUs: $9.3 Million

HBCU Percentage of Donations To All Colleges: 1.9%

HBCU Percentage of Donation Value To All Colleges: 0.8%

1. Carrie Walton Penner and Gregory Penner (pictured) – $20.0 million
Recipient: Howard University
Source of Wealth: Professional Sports, Family Wealth, Finance

2. MacKenzie Scott (pictured) – $12.0 million
Recipient: Howard University
Source of Wealth: Technology, Retail

3. John Brown and Rosemary Brown (pictured) – $10.0 million
Recipient: Spelman College
Source of Wealth: Health Products

4.Stephen Feinberg – $3.6 million
Recipient: Tuskegee University
Source of Wealth: Finance

5.Sean Combs – $1.0 million (Pledge)
Recipient: Jackson State University
Source of Wealth: Entertainment

Source: Chronicle of Philanthropy

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Starting a Philanthropy Club: A Collective Approach to African American Giving

Posted on December 16, 2024 by | Leave a comment

“I have found that among its other benefits, giving liberates the soul of the giver.” – Dr. Maya Angelou. 

If you’ve been considering joining or starting an philanthropy club with your family, friends, or fellow HBCU alumni but are unsure if it’s the right move, you’ve come to the right place. The answer is it is absolutely the right move.

A few facts regarding African American organizations and nonprofits:

Philanthropy clubs can be a powerful tool for leveraging African American philanthropy from like-minded individuals. They not only enhance your financial literacy and knowledge about African American and African Diaspora organizations but also empower you to make informed philanthropic decisions. By pooling your resources with your family, you can collectively grow your impact African American nonprofits finances and outreach, fostering a sense of confidence and control over institutional development and empowerment.

Keep reading as we discuss why you might want to start an investment club and the steps you’ll need to take.

Why You’ll Want to Start a Philanthropy Club?

One of the biggest reasons to start an philanthropy club is that they want to learn and share ideas with people who share their values. It makes sense to start a philanthropy club with family, friends, or HBCU alumni because, most of the time, your values are well-aligned. Yes, you may have different opinions, but your values are generally on the same page.

Philanthropy clubs can be a great way to learn about African American causes, organizations, and nonprofits. Because some members may be more seasoned donors, givers, or active in the nonprofit space, they can share their knowledge on certain topics.

Philanthropy clubs are a great way to magnify small donations by each member into a large donation by a focused collective. the increase the impact associated with investing. However, with the rise in so many commission-free brokers, the fees for making a high volume of trades aren’t as big of a deal.

How to Start an Investment Club

If you’re ready to get your philanthropy club with family, friends, or HBCU alumni off the ground, you’ll want to follow these steps to ensure success:

1. Find and Organize Members

Finding members for a philanthropy club is generally one of the most challenging steps. However, it’s a little easier if you’re looking to start one with your family, friends, or HBCU alumni. Either way, ensuring the fit is correct before jumping in is crucial.

A solid philanthropy club should have at least 5 people but no more than 15 or 20. You must have enough ideas, but too many can make things more difficult. Each person will be required to identify a cause, organization, or nonprofit. Then, each month, a different member will present their cause, organization, or nonprofit to the group.

Before extending an invitation to different anyone, ask yourself a few questions. These will help you see if it will be a good fit.

  • Do you trust the person you’re thinking of inviting to be consistent and involved?
  • Will they bring research and ideas to the meetings?
  • Are they organized?
  • Are they going to pay the monthly donation on time?

2. Determine Your Goals

Once you have your members set, you must agree on your goals. Most clubs’ goals will be making donations and learning from others. But how are you going to get to that point?

It’s important to take some time to understand each member’s philanthropic approach. Are they willing to take on more risk or prefer to be more conservative? Do you want to stick with only well known organizations, or are members interested in startup organizations as well? Do they only want to give to domestic organizations? Or are they willing to give to African Diaspora nonprofits working in Haiti, Jamaica, UK, or Africa?

Developing a plan of attack and ensuring that each member is on the same page will be vital to success.

3. Decide How You Want To Give

Deciding on if you want to setup a legal structure for your philanthropy club is important because potentially over time, your club can setup an endowment that invest donors money and that can grow into a significant and sustainable amount of money. Having the necessary legal protections is going to be important. If your philanthropy club decides to actually invest its donations into investments that will grow over time so that the club has larger and more sustainable sums to give is important to think about.

The other option is to simply give everyone the option to donate on their own once the cause, organization, or nonprofit is decided upon. This route relies on the honor system or some type of peer accountability towards giving.

Each philanthropy club must do what works best for them and also realize that the club is allowed to evolve over time.

The Bottom Line

Philanthropy clubs are a great way to pool your donor funds and learn from other members. Just be sure that you join a group where everyone is willing to listen to ideas and pull their own weight within the club.

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