Praise for A Passion for Giving

"Klein and Berrie have produced a great book that manages to make complex issues simple. It blends with grace and craft the deep with the practical and the concrete with the philosophical. It is a precious tool for both the neophyte and the experienced philanthropist. It is both a useful manual and a profound exploration of the core values of giving. In a word, this book is a true gift."–Andres Spokoiny, President and CEO, Jewish Funders Network

"Through the years, many people have asked us why we set up our family foundation and how we went about accomplishing this goal. The 'why' is easy to answer: we are fortunate enough to be able to give back and help others in need. The 'how' is perfectly explained in this compelling and very informative book by Peter Klein and Angelica Berrie."–Marilyn and Barry Rubenstein, The Marilyn and Barry Rubenstein Family Foundation

"This book should be required reading for new donors and experienced philanthropists. Klein and Berrie have crafted a winning combination of practical guidelines and heartfelt personal accounts to create a moving call to action for anyone who wishes to give back. The stories remind us that when philanthropy, an intensely personal journey, is coupled with deep learning, transformation occurs for both the recipient and the donor."–Debra Mesch, PhD, Professor and Director, Women's Philanthropy Institute, IUPUI

"I wish I could have had this book to guide me and refer to as my wife, Andrea, and I launched our Harbor Glow Foundation a decade ago. We would have been much more efficient in the process and more focused in our direction from the get-go. Peter and Angelica capture the spirit and nitty-gritty of a family foundation."–Michael Leeds, Co-Chair, Harbor Glow Foundation

PETER KLEIN (HUNTINGTON NY), CFA, is a Senior Vice President/Investments with UBS Financial Services. In addition, he has been the President/Treasurer of The Claire Friedlander Family Foundation since it was first established in 2008. For many years,?Klein was the financial advisor to Claire Friedlandershe entrusted her financial legacy to?Klein to perpetuate her ideals, beliefs, and concerns.?Klein has been an adjunct Professor of Graduate Finance at C.W. Post College of Long Island University. He is the author ofGetting Started in Security Analysis (Wiley 2009).?Through his career,?Klein has been called upon for major television/radio appearances to discuss investment strategy, analysis, and related financial services.

ANGELICA BERRIE (ENGLEWOOD NJ) is President of the Russell Berrie Foundation, which makes transformational gifts to seed innovative philanthropic ventures that express Russ Berrie's entrepreneurial spirit. After the death of her husband, NJ sales entrepreneur and philanthropist, Russell Berrie, Angelica assumed the role of CEO and Vice-Chair of the Board of Russ Berrie and Co. Inc., a global gift company listed on the New York Stock Exchange. The global gift company is best known for its lovable stuffed toys and popular products like the RUSS trolls. Angelica is also CEO of Kate's Paperie, a five-store chain of globally sourced specialty paper and gift wrap (Manhattan and Greenwich CT).

Acknowledgments xv

Part I So You Want to Be a Philanthropist 1

Chapter 1Estate Planning and Charitable Giving 7

Estate Planning 101 10

The Estate Planning Process 17

Case StudyEstate Planning 101 18

Summary 20

Chapter 2Charitable Giving 21

What Is a Nonprofi t Entity? 23

Due Diligence 24

Digging Deeper 27

Donor Advised Funds (DAFs) 31

Community Foundations 37

Summary 40

Chapter 3Starting a Private Foundation 41

The History of Private Foundations 42

Leaving a Stated Mandate for Future Generations 46

Modern History of Private Foundations 48

Creating a Private Foundation 50

Form 1023 58

Guiding Documents 59

The Mission Statement 62

Code of Ethics 64

Be Proactive and Know Your Charities 65

Summary 66

Chapter 4Managing a Private Foundation 67

Form 990-PF 68

The Foundations Board and Governance Issues 79

Summary 87

Chapter 5Managing a Private FoundationGrant Making and Operations 89

Type of Support: Periodic versus Endowments and General versus Program-Based 91

What Type of Foundation Will We Become? 93

Sourcing a Grant 97

The Acknowledgment Process 100

The Pre-Proposal Briefi ng Form (PPBF) 102

The Due Diligence Process 109

Progress Reporting and Evaluation 116

Summary 120

Chapter 6Investment Management for Private Foundations 123

The Investment Management Process 124

Why Is the Investment Management Process Important to Me? 126

The Investment Committee 127

The Investment Policy Statement 130

Addendums to the Investment Policy Statement 145

Manager Search and Implementation Phase 150

Communication 152

Summary 155

Part II A Passion for Giving 157

Lessons in Philanthropy

Chapter 7The Gift 165

Philanthropy as the Gift of Who You Are Giving Begins with the Self 165

What Are You Most Passionate About? 166

The Greatest Gift 168

Summary 169

Chapter 8Purpose 171

Ken Behrings Story

Introduction by Glen Macdonald, President of the Wealth and Giving Forum 171

Somebody Told Me about the WordPurpose by Ken Behring 174

Summary 179

Resources 180

Chapter 9The Gifted Giver 181

Lessons fromPeter Karoff (Chairman and Founder of The Philanthropic Initiative) with Insights fromJoel Fleishman (Professor of Law and Public Policy at Duke University)

The Philanthropic Learning Curve 182

Ambitious Goals andBig Ideas 183

The Gifted Giver 187

The Transformational Gain of Giving 190

Summary 191

Resources 192

Chapter 10The Power of One 195

Lessons fromLisa Nigro (the Inspiration Corporation) and Chip Paillex (Americas Grow-a-Row)

The Inspiration Corporation 196

Americas Grow-a-Row 199

Summary 203

Resources 203

Chapter 11The Feminine PrincipleWomen Leading through Philanthropy 205

Lessons fromPeggy Dulany (Founder of Synergos Institute), Ellen Remmer (President and CEO of the Philanthropic Initiative), andMonica Winsor (Vice Chair, Women Moving Millions)

Women as Change Agents 206

Peggy Dulanys Story 208

Ellen Remmer: How Women Are Transforming Philanthropy 211

Monica Winsors Story 212

Summary 215

Resources 215

Chapter 12Empowering the Next Generation 217

Lessons fromSharna Goldseker (Vice President, Andrea and Charles Bronfman Philanthropies, and Director of 21/64),Ruth Cummings (Chair, the Nathan Cummings Foundation), andLance Lindblom (President and Chief Executive Officer, the Nathan Cummings Foundation)

Sharna Goldsekers Story 217

Four Generations of Giving: Lessons from the Nathan Cummings Foundation 221

Summary 232

Chapter 13Philanthropists as Explorers 233

Lessons fromScott McVay (Founding Executive Director of the Geraldine R. Dodge Foundation, and 16th President of Chautauqua Institution),Aimee Morgana (Founder of the Nkisi Institute), andPaul Winter (Founder of Music of the Earth, Inc.)

Scott McVays Story 234

The Journey of Discovery: Aimee Morganas Story 236

The Grand Symphony of Life: Paul Winters Story 238

Summary 241

Resources 242

Chapter 14The Journey from Doing Good to Making Change 243

Lessons fromChristine DeVita (President, the Wallace Foundation)

A Passion for Learning and the Arts 243

Learning from Mistakes 245

Strategy and Listening to Feedback 246

Summary 248

Resources 249

Chapter 15Heart and Soul 251

Lessons fromAmy Goldman (Chair and Executive Director of the GHR Foundation), andLynn Schusterman (Chair of the Charles and Lynn Schusterman Family Foundation)

Amy Goldmans Story: Interfaith in Action 251

Lynn Schustermans Story: Three Thousand Years of Jewish Giving 255

Summary 258

Chapter 16The Philanthropic Journey 259

A Vision for Change 259

Summary 262

Resources 262

About the Authors 263

About the Participants 267

Index 287