Canadian Family Offices: Donations with strings attached create ‘starvation cycle’ for charities

Our founder and CEO, John Bromley, was recently interviewed by Canadian Family Offices for their latest article, delving into the rise of trust-based philanthropy endorsed by philanthropic advisors, highlighting the importance of this approach in maximizing the impact of donations and steering clear of the 'starvation cycle' often associated with restricted donations.

The publication notes that trust-based giving prioritizes nonprofits' missions over the intricacies of their programs and operations. With unrestricted donations, donors invest in the mission rather than specific programs or outcomes.

Quoting Bromley, the article underscores the correlation between the growth of Donor-Advised Funds (DAFs) and trust-based philanthropy, highlighting that this trend is not coincidental. DAFs, by "giving donors as much time as they need to communicate with charities and financial advisors, conduct research and consider feedback to whatever extent they like, and determine which causes best align with their philanthropic values and priorities, DAFs enable donors to gain the knowledge and the confidence to make unrestricted donations and maximize their impact."

Want to learn more about this? Read the full article here.