To Make a Difference, Family Philanthropy Must Take More Risks

by Katherine Lorenz

Jul 20, 2016

Many of us in family philanthropy are driven by a grand vision of a better world. We are motivated by bold ideas, and finding ways to use our philanthropy to make a difference and leave a lasting impact.And, at the same time, we are too often hamstrung by a fear of failure. While keenly aware of the hard work that went into earning the money we are giving away, we may feel an obligation to ensuring that the funds are allocated responsibly.We are also often wary of taking the same risks in our philanthropy that we would take in business. Investors typically balance their portfolios, making sure there is a balance of both higher- and lower-risk investments. The high-risk investments are more likely to fail, but, if they pay off, they usually have a higher return than the more dependable, lower-risk investments.

To Make a Difference, Family Philanthropy Must Take More Risks
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