Money Well Spent: A Strategic Plan for Smart Philanthropy, Second Edition

393 Pages·2018·3.03 MB·English

by  Paul Brest & Hal Harvey

Advance Praise for the Second Edition
“Philanthropy is a complicated trade, and anyone who wants to understand
how to be truly effective must read Brest and Harvey’s indispensable book.
It offers a comprehensive and comprehensible overview of the process,
supplemented by a rich trove of examples and insights from
two masters of the craft.”
—LARRY KRAMER, President, Hewlett Foundation
“The extraordinary freedom enjoyed by philanthropy brings responsibilities.
Brest and Harvey offer new and experienced philanthropists alike an
invaluable guide to consider those responsibilities and to learn about the
exciting innovations and growth in philanthropy over the last decade.”
—CAROL LARSON, President and CEO, David and Lucile Packard Foundation
“The most important book for how to translate large-scale fi nancial
resources into large-scale social change. Brest and Harvey provide an
essential resource for how foundations can successfully navigate the vast
complexities of evidence-based philanthropy, impact investing,
and policy change, while creating measurable value.”
—LAURA ARRILLAGA-ANDREESSEN, Founder of SV2, Stanford PACS,
LAAF.org, and author of New York Times Bestseller, Giving 2.0
“Paul Brest and Hal Harvey offer a lucid, reader-friendly, and persuasive
case for why rigorous strategy is indispensable for anyone
using philanthropy to make the world a better place.
It is the best guide available today, bar none.”
—JOEL L. FLEISHMAN, Duke University, author of Putting Wealth to Work
“Money Well Spent is the most thorough, comprehensive, and authoritative
guide to effective philanthropy published to date. It weaves together
compelling examples of philanthropic successes and failures with
practical, step-by-step guidance. Every major donor, foundation staff and
board member, and philanthropic advisor needs to read this book.”
—PHIL BUCHANAN, President, The Center for Effective Philanthropy
Praise for the First Edition
“An invaluable resource that distills the essence of strategic philanthropy
for those seeking to achieve a greater social impact.”
—BILL GATES, Co-chair, Bill & Melinda Gates Foundation
“This is an ever-so-practical and yet ever-so-thoughtful contribution
to our understanding of how philanthropy should work.”
—WILLIAM G. BOWEN, Late President,
The Andrew W. Mellon Foundation and Princeton University
“In philanthropy, as in investing, you need a solid strategy to understand
what works, what fails, and why. Money Well Spent provides the tools
philanthropists need to create an effective strategy and achieve success.”
—GEORGE SOROS
MONEY WELL SPENT
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MONEY WELL SPENT
A Strategic Plan for
Smart Philanthropy,
Second Edition
Paul Brest and Hal Harvey
STANFORD BUSINESS BOOKS
An Imprint of Stanford University Press • Stanford, California
Stanford University Press
Stanford, California
© 2018 by Paul Brest and Hal Harvey. All rights reserved.
No part of this book may be reproduced or transmitted in any form or by any
means, electronic or mechanical, including photocopying and recording,
or in any information storage or retrieval system without the prior written
permission of Stanford University Press.
Special discounts for bulk quantities of Stanford Business Books are available
to corporations, professional associations, and other organizations. For details
and discount information, contact the special sales department of Stanford
University Press. Tel: [phone], Fax: [phone]
Printed in the United States of America on acid-free, archival-quality paper
Library of Congress Cataloging-in-Publication Data
Names: Brest, Paul, author. | Harvey, Hal, author .
Title: Money well spent : a strategic plan for smart philanthropy / Paul Brest
and Hal Harvey.
Description: Second edition. | Stanford, California : Stanford Business Books,
an imprint of Stanford University Press, 2018. | Includes bibliographical
references and index.
Identifi ers: LCCN 2017057764 (print) | LCCN 2017058935 (ebook) |
ISBN 9781503606036 (electronic) | ISBN 9781503602618 (cloth :
alk. paper)
Subjects: LCSH: Nonprofi t organizations—United States. | Philanthropists—
Charitable contributions—United States. | Charities—United States.
Classifi cation: LCC HD2769.2.U6 (ebook) | LCC HD2769.2.U6 B74 2018 (print)
| DDC 658.4/012—dc23
LC record available at https://lccn.loc.gov/2017057764
Cover design: Michel Vrana
Typeset by Motto Publishing Services in 11/15 ITC New Baskerville
For Iris, my life partner and uncompromising editor,
with love and gratitude.
PAUL
To Heather, for her tolerance and love,
and to Jeremy, Thea, and Mariah,
for making this old man proud (most) every day.
HAL
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CONTENTS
Preface to the Second Edition xi
Introduction 1
PART 1: INTRODUCTION TO STRATEGIC PHILANTHROPY 5
1. The Promise of Strategic Philanthropy 7
PART 2: PHILANTHROPIC STRATEGY FROM SOUP TO NUTS 29
2. Problem Analysis 31
3. Developing Solutions 48
4. From Theory to Action 61
5. Evaluating the Impact of Your Philanthropy 76
6. Using Outcome Data to Increase Your Impact 92
PART 3: GRANTMAKING 113
7. Preparing to Open for Business 115
8. Inviting Proposals and Conducting Due Diligence 129
9. Forms of Philanthropic Engagement and Funding 148
10. Impact Investing and Mission Investments 164
11. Working with Others in the Field 188
12. Principles and Practices of Effective Philanthropy 210