The Philanthropy Playbook
Philanthropy Experts Share Their 4 Non-Negotiables for Making a Lasting Charitable Impact.
Like all businesses, effective philanthropy requires strategic planning, thorough due diligence, and long-term commitment. Although success can be measured by social or environmental impact, while a typical business is measured by financial gain, both endeavours require clear criteria, strategic thinking, and a long-term vision to succeed.
Thiam Marais, Partner & Head of our Stellenbosch office, recently hosted a panel of experts for an in-depth conversation about the common denominators of a successful philanthropic enterprise. Thiam welcomed Le Roux van der Westhuizen, Executive Trustee at the Millennium Trust, and Julie Cheetham, Member of the Board of Directors of the Grootbos Foundation. The Millenium Trust is a non-profit organisation that funds and supports educational and economic initiatives across South Africa, while the Grootbos Foundation is an environmental non-profit organisation that is dedicated to conserving the unique flora of Cape Town.
Here, Le Roux and Julie lay out the 4 non-negotiables in their 'philanthopy playbook' for success in any charitable endeavour.
Successful philanthropy requires the same strategic thinking, due diligence, and long-term commitment that families apply to their business investments, the difference lies in measuring returns through social and/or environmental impact rather than financial gain. Start by clearly defining objectives, be ambitious about what you want to achieve, decide how much money you want to spend, and scope your ambition toward your budget. Successful family foundations establish clear criteria of what they will and will not support, this create a coherent theory of change that guides all funding decisions, instead of responding to individual requests as they arise.
Le Roux van der Westhuizen, Executive Trustee at the Millennium Trust.
Effective philanthropy requires thorough vetting of potential recipients. Organisations should have a practical plan of action, trusted leadership, and operate in a cost-efficient and sustainable manner. Investigate whether a potential recipient has a practical plan and the know-how to deliver on that plan, even better, an effective delivery track record. While time consuming, this due diligence process dramatically improves the likelihood of meaningful impact.
Le Roux van der Westhuizen, Executive Trustee at the Millennium Trust.
Successful iniatives must be led by communities and experts who understand local needs. this approach prevents the common mistake of external funders imposing solutions that don't address actual needs, which is a very quick setup to fail. Additionally, speak to other people and hear what they are doing, to avoid duplication. Don't be afraid to work in partnerships - a new perspective can double the money and make more than double the impact.
Julie Cheetham, Member of the Board of Directors of the Grootbos Foundation.
It’s important to maintain focus over time, particularly across generations. Strong documentation, a clear founding vision, and diverse boards of trustees help organisations stay true to their mission despite changing circumstances and funding pressures. An involved board, strong governance and guardrails around what's important to your vision as a family are essential safeguards. Moreover, multi-year funding commitments allow for organisations to focus on their mission rather than constantly fundraising, which leads to more effective programme delivery.
Julie Cheetham, Member of the Board of Directors of the Grootbos Foundation.