October 2011

I.G. Memo: Think Different

In 1997, after his return to Apple as CEO, Steve Jobs commissioned the PR agency TBWA to create a new ad campaign for the then-struggling company. The campaign had to reposition Apple as a leader in technological innovation. TBWA created a television and print campaign that juxtaposed iconic figures, like Gandhi and Einstein, with the Apple logo and the slogan, Think Different. The campaigns message was simple: it challenged consumers to think beyond the IBM/Windows monopoly, while making Apple seem rebellious. Its impact was almost immeasurable: many agree that the campaign was the beginning of Apples journey to becoming one of the worlds most profitable firms. Think Different can also be applied to how individuals approach their philanthropic giving. Philanthropy has evolved far beyond simply writing a cheque to a well-known charitable establishment. We here at I.G. Advisors (I.G.) challenge all individuals, irrespective of financial capacity, to think differently about their personal philanthropy.

The motivations behind a philanthropic donation havent changed much over the centuries. Individuals give philanthropically for a number of reasons, including emotional connections, direct experience, religious beliefs, tax purposes, status attainment, peer pressure, or death. Often a person gives because of a mixture of these reasons-- someone whose mother loved the ballet may make a gift in her memory to her favourite ballet company. We at I.G. encourage all of our individual clients to think differently about philanthropy in two key areas: how they are actually supporting their desired cause or organisation; and what impact their philanthropy is ultimately making. Some individuals, especially those new to strategic philanthropy, need help honing in on what causes they want their giving to affect. Others have a very clear idea of what it is they want to support. Irrespective of how developed ones interest may be, once a cause space (e.g. women & girls, the arts, global health, etc.) has been selected, a philanthropic strategy can be formulated. So far, weve havent noted anything new; all good advisors will take their clients through a philanthropic values

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assessment. However, what happens next usually borders the tried and tested and tends not to thrill. In the same way that a new business venture excites, a philanthropic donation, particularly at the major gifts level (5,000+), should inspire and engage its donor. We live in a time where more millionaires are selfmade than inherited their wealth. To make their fortunes, entrepreneurs thought differently; some may have taken calculated risks, but they were risks all the same. Its been our experience that most individuals and their advisors tend not to capitalise on how they made their fortunes their drive and their willingness to think differently and apply it to their philanthropy. We want todays philanthropists to harness their business acumen and apply it to their giving. We are not implying that all new or existing philanthropists start their own organisations and programmes, or do not fund well-established charities. What we want to see, and indeed advise our clients on, is to take a riskier and more personally involved approach to their philanthropy. Thinking differently about philanthropy does not mean doing something that has not been taken through a proper due diligence process. What it means is pro-actively investing the time to choose a cause and a vehicle that appeals to your intellect and emotions alike, and then designing a strategy that consists of more than just writing a cheque to the most obvious recipient(s). Choose a cause that means something to you. Then learn how you can best impact that cause through giving your money and, when appropriate, time. Its at this stage that the innovative thinking should kick in:

Is there a social entrepreneur that, with enough seed capital, could revolutionise the cause space youre interested in? Is there a start-up who would be willing to partner with you to execute a pilot in your cause space of choice? Is there a well-established charity that could double its impact with the right kind of unrestricted funding?

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Think differently about how you want to have an impact and determine how best to achieve this in a way that aligns itself with your values and personality. For those who look, there are plenty of organisations and social entrepreneurs out there doing amazing things. Want lists of vetted social entrepreneurs working in every corner of the globe? Visit the TEDs Fellows website (www.ted.com/pages/fellows) and try not to be inspired. The Green Shoots Foundation (www.greenshootsfoundation.org), a startup microfinance charity (and an I.G. client), is an example of an organisation doing innovative work that would appeal to a donor who was interested in international development and prepared to think differently. Green Shoots has a unique and riskier USP than most of the better-known microfinance charities because it focuses on establishing greenfield operations (creating access to financial services in areas where there are no other providers). Donors to Green Shoots can, even with small gifts, see tangible impacts: for example, a current project in the slums of Mumbai will double the number of people in that area with access to finance. If you take the time to do some research you can find organisations like Green Shoots that, while operating off the beaten path, can align themselves perfectly with a donors intellectual and emotional sensibilities. So dont be afraid to take calculated risks with your philanthropy. Its true that because of the risk your gift may not have the desired effect but then again it could very well change the world. As Apples 1997 Think Different television advert noted: the people who are crazy enough to think they can change the world, are the ones who do. And conveniently, most of the time, these people or organisations are in need of philanthropic support so go, choose your cause space, do your research and due diligence, and think differently about how you can have a positive social impact.

To learn more about I.G. Advisors or our services, please contact us at info@ig-advisors.com or visit www.impactandgrowth.com. You can also follow us on Twitter @IG_Advisors.

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