The Beacon Collaborative The Philanthropy Ecosystem:
The Philanthropy Advisor.
We are delighted to introduce the first article of our brand new Philanthropy Ecosystem Series, designed to break the ‘isolation tank’ syndrome that philanthropists can sometimes find themselves in. The good news is they are not alone and an evolving ecosystem of support exists to help them.
In this series, we will introduce and interview some of the incredible individuals and organisations that are here to help and support all potential and existing philanthropists. We are grateful to Emma Beeston, herself a Philanthropy Advisor, for conducting these real-world interviews on behalf of Beacon.
In this first article, we will be discussing what a philanthropy advisor is and what they do in the company of Lizzy Steinhart, a Philanthropy Advisor for the multi-family office LCM Family Limited. For any philanthropists trying to work out how best to make a difference in the world, the great news is that advisors like Lizzy will help them reach their goals.
The role of a Philanthropy Advisor
A Philanthropy Advisor is a philanthropist’s essential guide through the myriad of choices you will make as you move from being a generally charitable individual to becoming an intentional giver. They act as a critical friend who is there to help you when it comes to deciding your philanthropic goals as well as bringing their sector expertise to inform (and sometimes challenge) your giving choices. Philanthropy Advisors can be found in a range of settings: banks, family offices, and wealth management firms as well as being independent consultants and advisory practitioners.
Many Philanthropy Advisors will be generalists who are able to help you with any aspect of what you want to achieve from your giving. Some Philanthropy Advisors specialise in a particular cause area such as the environment or a particular philanthropic approach such as strategic philanthropy, or particular aspects such as those involving the family and issues that can arise there.
A Philanthropy Advisor is not yet a well-known professional role. To demonstrate what they do we interviewed Lizzy Steinhart, a Philanthropy Advisor for the multi-family office LCM Family Limited. Lizzy has a background in the charity and grant-making sectors and joined the firm to set up their philanthropy service. Her purpose is to support individuals and families in turning their generosity into thoughtful and planned giving. Her typical day demonstrates the variety of areas that philanthropy advisors can help with such as liaising with tax advisors for a client wanting to set up a donor-advised fund conducting due diligence assessments and even accompanying a client on their project visits.
Some of Lizzys’ clients may come up with a firm idea that she will then help to make sure they have considered a broader marketplace than the charities they may already be aware of. Other clients of hers may come to her with a blank sheet of paper which means that Lizzy can work with them for several months or even over years to help them decide where they want their money to go and what the most effective and efficient timing of donations for both the client and the charities involved would be.
What benefits does a Philanthropy Advisor bring?
Lizzy: It is hard for a philanthropist to pick up the phone and say “I may or may not be interested in giving you some money”. Philanthropy advisors are really useful intermediaries that can facilitate connections and conversations to benefit both parties as they are able to make these conversations deeper, clearer and more strategic.
Advisors also enable broader conversations about the purpose of wealth across families. This can help the wealth creator to express their values at the same time as listening, inspiring and guiding the future inheritors in financial literacy and charitable giving. This can prevent the issues that arise when family members only find out at death that someone has given lots of money away to charity. More importantly, it enables children and grandchildren to be incredibly proud of what their family has achieved.
Ideally, you are helping your client to become confident and self-sufficient to ask charities the right questions about causes and projects that they may want to invest in. As well as making introductions and guiding what good due diligence of a charity should look like, I can steer them in how to research a specialist cause or ‘ marketplace’ of charities working within a specific field and also support them in conducting meetings with charities.
They can then go off and follow that particular charity relationship themselves, often that will last many years. The majority of my clients are very intelligent people with fabulous careers. They are coming to this with huge intellect, curiosity and compassion. It’s about facilitating their onward journey without me.
What should philanthropists look for in an advisor?
Lizzy: This brings us back to our question of what is a philanthropy advisor. Look at their career path, their professional networks and their previous experience and knowledge of the charitable sector. There are plenty of good people out there so talk to others and get personal recommendations.
What challenges do you face in this role?
Lizzy: Philanthropy is so meaningful and enjoyable that I find it frustrating that it is not part of all conversations about wealth across private clients‘ ‘financial services’. Clients don’t often know the added value they, their families and charities will gain from investing in some professional philanthropy advice. Too many wealthy individuals still make significant ad hoc, spontaneous donations to causes that they care about, rather than using their day-to-day business acumen to research, take advice and ‘invest’ in that cause to maximise their own knowledge, the terms, value and impact of the gift.
What do you like most about your role?
Lizzy: I love the breadth of the individuals I get to work with – from the wealthy clients wanting to make a socially conscious impact with their money, to meeting with incredibly dedicated charity staff, volunteers, and of course, the end beneficiaries of funding – many of whom have humbling and inspirational stories to tell. It is so rewarding to take a client on their giving journey and see this often open up a new enriching chapter for them and their families.
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Elizabeth Steinhart
Philanthropy Advisor
Mobile: 07418 998 384
www.lcmfamily.co.uk
Meet the author:
Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving. Emma is a 21/64 Certified Advisor, facilitating multi-generational engagement in philanthropy. She teaches philanthropy master’s programmes at the University of Kent and Bayes Business School. She is the co-founder of a giving circle, Bath Women’s Fund. Her book on Advising Philanthropists (Co-authored with Beth Breeze) comes out in early 2023.
Emma Beeston
Philanthropy Advisor
07810 543737
emma@emmabeeston.co.uk
www.emmabeeston.co.uk
Next time: The Thinkers – researchers, academics and thought leaders.