This paper considers some of the key risks warranting board of directors' attention in the next year and proposes practical steps to take in response to political risk and the role of emerging economies, supply chain risk and business resiliency, capital investment and project-related risk, cyber risk, and compliance and regulatory risk.
By making charitable contributions from within the family's closely held business, the potential donor can maximize the benefits of a charitable contribution and the value of the assets being contributed, structure the gift transaction to supplement the business owner's finances after the gift, and coordinate with succession planning for the business.
Socially responsible investing has focused largely on what investors don't do, such as choosing not to invest in tobacco, weapons manufacturers, or alcohol. Socially innovative investing takes the concept a step further by reviewing securities across a spectrum of criteria that weigh both social responsibility and financial fundamentals.
Finding the right thing to say to a friend with cancer can be difficult. But by responding in a way that feels comfortable, respecting privacy, being supportive, and finding concrete ways to assist, you can show that person you care and want to help.
Becoming thoughtful and intentional about altruism and the passion to make a difference is the difference between having good intentions and being intentional about our values and commitments to others. This newsletter offers tips on how to give better, helps 'tween philanthropists ask seven critical questions about giving, and provides a visual way to explain the difference between charity and philanthropy.
Now is a good time for not-for-profit organizations to clean their gift closets by assessing endowment funds. This can help to keep funds from being misapplied, identify funds that are dormant due to donor restrictions, and reveal uses that could be applied to new organization initiatives. Check the documentation and review the terms of each gift.
Parents who are concerned about family harmony after their deaths are wise to address the issues of estate equalization as a key element of their estate and business planning. Most of the problems that would create disharmony among their children can be handled with careful thought and with wills, trusts and business agreements that clearly dictate the legacy plan.
The time to consider the reinvestment risk of selling a family business is before, not after, the sale. A reinvention plan can help by taking into consideration the remaining ties to the business, estate and tax planning issues related to the sale, and personal reinvention for family members as they continue on without the business.
Owners who are looking to transition their businesses face the question of whether it is better to sell now or wait until later, particularly in light of the current tax situation. In making this consideration, they should consider the pros and cons of various options: status quo, management buyout, ESOP, sale to a financial buyer, or sale to a strategic buyer.
Donors are reassessing their giving to maximize impact and to ensure their money is being utilized effectively and efficiently by the non-profit organizations they support. Meantime watchdog organizations are grading the non-profit community and posting their ratings online.