Unsubscribe

Confirm you would like to unsubscribe from this list

Remove strategy

Confirm you would like to remove this strategy from your list

Welcome to Thornburg

Please select your location and role to help personalize the site.
Please review our Terms & Conditions

For Institutional / Wholesale / Professional Clients

The content on this website is intended for institutional and professional investors in the United States only and is not suitable for individual investors or non-U.S. entities. Institutional and professional investors include pension funds, investment companies registered under the Investment Company Act of 1940, financial intermediaries, consultants, endowments and foundations, and investment advisors registered under the Investment Advisors Act of 1940.

TERMS AND CONDITIONS OF USE

Please read the information below. By accessing this web site of Thornburg Investment Management, Inc. ("Thornburg" or "we"), you acknowledge that you understand and accept the following terms and conditions of use.

Disclaimers

Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be licensed or available in all jurisdictions and there may be restrictions or limitations to whom this information may be made available. Unless otherwise indicated, no regulator or government authority has reviewed the information or the merits of the products and services referenced herein. Past performance is not a reliable indicator of future performance. Investments carry risks, including possible loss of principal.

Reference to a fund or security anywhere on this website is not a recommendation to buy, sell or hold that or any other security. The information is not a complete analysis of every material fact concerning any market, industry, or investment, nor is it intended to predict the performance of any investment or market.

All opinions and estimates included on this website constitute judgements of Thornburg as at the date of this website and are subject to change without notice.

All information and contents of this website are furnished "as is." Data has been obtained from sources considered reliable, but Thornburg makes no representation as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg disclaims, to the fullest extent of the law, any implied or express warranty of any kind, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement.

If you live in a state that does not allow disclaimers of implied warranties, our disclaimer may not apply to you.

Although Thornburg intends the information contained in this website to be accurate and reliable, errors sometimes occur. Thornburg does not warrant that the information to be free of errors, that the functions contained in the site will be uninterrupted, that defects will be corrected or that the site and servers are free from viruses or other harmful components. You agree that you are responsible for the means you use to access this website and understand that your hardware, software, the Internet, your Internet service provider, and other third parties involved in connecting you to our website may not perform as intended or desired. We also disclaim responsibility for damages third parties may cause to you through the use of this website, whether intentional or unintentional. For example, you understand that hackers could breach our security procedures, and that we will not be responsible for any related damages.

Thornburg Investment Management, Inc. is regulated by the U.S. Securities and Exchange under U.S. laws which may differ materially from laws in other jurisdictions.

Online Privacy and Cookie Policy

Please review our Online Privacy and Cookie Policy, which is hereby incorporated by reference as part of these terms and conditions.

Third Party Content

Certain website's content has been obtained from sources that Thornburg believes to be reliable as of the date presented but Thornburg cannot guarantee the accuracy, timeliness, completeness, or suitability for use of such content. The content does not take into account individual investor's circumstances, objectives or needs. The content is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services, nor does it constitute investment advice and should not be used as the basis for any investment decision.

Suitability

No determination has been made regarding the suitability of any securities, financial instruments or strategies for any investor. The website's content is provided on the basis and subject to the explanations, caveats and warnings set out in this notice and elsewhere herein. The website's content does not purport to provide any legal, tax or accounting advice. Any discussion of risk management is intended to describe Thornburg's efforts to monitor and manage risk but does not imply low risk.

Limited License and Restrictions on Use

Except as otherwise stated in these terms of use or as expressly authorized by Thornburg in writing, you may not:

  • Modify, copy, distribute, transmit, post, display, perform, reproduce, publish, broadcast, license, create derivative works from, transfer, sell, or exploit any reports, data, information, content, software, RSS and podcast feeds, products, services, or other materials (collectively, "Materials") on, generated by or obtained from this website, whether through links or otherwise;
  • Redeliver any page, text, image or Materials on this website using "framing" or other technology;
  • Engage in any conduct that could damage, disable, or overburden (i) this website, (ii) any Materials or services provided through this website, or (iii) any systems, networks, servers, or accounts related to this website, including without limitation, using devices or software that provide repeated automated access to this website, other than those made generally available by Thornburg;
  • Probe, scan, or test the vulnerability of any Materials, services, systems, networks, servers, or accounts related to this website or attempt to gain unauthorized access to Materials, services, systems, networks, servers, or accounts connected or associated with this website through hacking, password or data mining, or any other means of circumventing any access-limiting, user authentication or security device of any Materials, services, systems, networks, servers, or accounts related to this website; or
  • Modify, copy, obscure, remove or display the Thornburg name, logo, trademarks, notices or images without Thornburg's express written permission. To obtain such permission, you may e-mail us at info@thornburg.com.

Severability, Governing Law

Failure by Thornburg to enforce any provision(s) of these terms and conditions shall not be construed as a waiver of any provision or right. This website is controlled and operated by Thornburg from its offices in Santa Fe, New Mexico. The laws of the State of New Mexico govern these terms and conditions. If you take legal action relating to these terms and conditions, you agree to file such action only in state or federal court in New Mexico and you consent and submit to the personal jurisdiction of those courts for the purposes of litigating any such action.

Termination

You acknowledge and agree that Thornburg may restrict, suspend or terminate these terms and conditions or your access to, and use, of the all or any part this website, including any links to third-party sites, at any time, with or without cause, including but not limited to any breach of these terms and conditions, in Thornburg's absolute discretion and without prior notice or liability.

Decline

Give Us a Call

Fund Operations
800.847.0200

FIND ANOTHER CONTACT
Advising Clients

Strategic Philanthropy Is Only One Part of Managing Legacy Wealth

Jan Blakeley Holman, CFP, CIMA, ChFC, CDFA, CFS, GFS
Director of Advisor Education
22 Jun 2018
6 min read

A story of a high net worth family foundation, its journey from an organization that began with a traditional funding approach to one that embraced strategic philanthropy and the resulting rewards.

As clients live longer, designate more of their money for philanthropy, and engage family members in their philanthropic endeavors, it is more important than ever that you, as their financial advisor, position yourself as an expert and “go to” advisor on this subject.

The following case study tells the story of one high net worth family foundation, its journey from an organization that began with a traditional funding approach to one that embraced strategic philanthropy and the resulting rewards.

The Thornburg Foundation

In 2013 our founder Garrett Thornburg stepped back to reassess the goals and objectives of his family’s foundation. Mr. Thornburg had a long-standing commitment to philanthropy dating back to his time at Bear Stearns, when Alan “Ace” Greenberg encouraged each partner to contribute at least four percent of their income to charity. Although Ace recommended a four percent target to the Bear Stearns partners, he consistently exceeded that four percent target by contributing 10 percent of his income to charity, and like his former colleague, Garrett Thornburg does the same.

Since founding Thornburg Investment Management in 1982, Garrett Thornburg has followed Ace Greenburg’s “lead” by encouraging all of Thornburg’s managing partners to make annual philanthropic contributions. As a corporation, Thornburg Investment Management also has a strong culture of philanthropy—giving out $500,000 each year for the Arts, Culture, and Education, putting money directly into Santa Fe classrooms, and encouraging employee volunteerism through a corporate program that makes contributions to any non-religious 501(c)(3) organization in which an employee serves on the board or contributes forty hours per year of uncompensated labor.

In 1998, Garrett’s private foundation began making small operational grants to homeless shelters, youth engagement organizations, education organizations, environmental groups, and others. The foundation made dozens of grants to non-profits in the communities where the Thornburg family members resided. But the more the family witnessed the stubborn problems of an underperforming education system, less than responsive government, the demise of local farming economies, and the overgrazing of public lands, the more they wanted the foundation to have a deeper impact on those systematic problems.

In 2013 the Thornburg Foundation’s board decided to hire a full-time director, and sent him to meet with the most innovative foundations across the country to evaluate their philanthropic approaches. After meeting with dozens of foundations, the Thornburg Foundation focused on the success of the Pew Charitable Trust and elected to adopt a similar strategic philanthropy approach.

In addition to the requests received by the Thornburg Foundation, many non-profits make requests to our founder each year. While Garrett refers most of those requests to the foundation for due consideration, and sometimes grant awarding, occasionally he chooses to use an advised fund to anonymously fulfill requests.

What Is Strategic Philanthropy?

Practitioners of strategic philanthropy focus their efforts upstream—looking deeply at societal problems and seeking to advance systemic solutions. This approach requires specific goals, a strong cadre of foundation policy officers who are experts in their field, and regular measurement of results.

The Thornburg Foundation conducted an assessment of the landscape in New Mexico to best understand the root causes of the problems we had identified as most important.

Then we looked at different approaches for mobilizing change toward solutions, in which we assessed the feasibility of each approach by asking ourselves five key questions:

    1. Does the approach have real evidence or proof that it will have an impact?
    2. Can it be accomplished in five years?
    3. Are there strong non-profits to drive this change?
    4. Are there other funding partners who also have skin in the game?
    5. Does the political will exist for making these changes?

If a problem met these criteria, we moved forward.

As a result of the assessment, we focused our work in three areas: Early Childhood Education, Good Government Reform, and Food and Agriculture Reform and committed to investing $1 million per year over five years to these initiatives, focusing solely on New Mexico allowing us to have a statewide policy impact.

In traditional philanthropy, staff members are generalists who evaluate grants across a wide range of areas. In a strategic philanthropy-oriented organization, policy officers are experts in their area of focus and they develop a strategy, engage with issue stakeholders, and co-create strategy with their non-profit partners.

As a family foundation we can fund research, identify best practices, generate stakeholder engagement, and undertake polling. And although we are prohibited from lobbying for funding, we can provide support to our partners up to the doors of the legislature and follow through with additional analysis once a policy becomes law.

Why do we engage in strategic philanthropy? The reason is consistent with why Garrett founded Thornburg Investment Management: return on investment. When he founded Thornburg, Garrett believed in providing investors with investment returns that could help them build real wealth after inflation, taxes, and investment expenses. As it applies to the foundation, return on investment is critical because it enables the family to increase the impact of the foundation’s charitable contributions. And by all accounts, this approach pays off.

A recent study by the National Center for Effective Philanthropy showed that every dollar invested in policy and civic engagement provided a return of $115 in community benefit.

For example, in 2015 the Thornburg Foundation and other early childhood funders invested approximately $25,000 to support non-traditional organizations who sought to advocate for increased funding for home-visiting programs in New Mexico. While almost every other government program was cut, the Governor and Legislature wisely increased the funding for home visits by $900,000.

In three short years, our strategic philanthropy approach has helped our non-profit partners advance common objectives by:

  • Injecting $20 million of new investment into Early Childhood Education by the State of New Mexico.
  • Passing one of the most progressive and transparent city campaign finance systems in the nation.
  • Creating one of the most transparent user-friendly state campaign finance web portals in the country.
  • Developing the first statewide agriculture resilience plan in New Mexico’s history.
  • Investing in a program that enables low-income families to double their food stamp purchases at farmer’s markets. Our $150,000 grant spurred a $400,000 investment by the State of New Mexico and a $5 million investment by the federal government.
  • Leveraging federal matching dollars to create more than $1 million in new business for New Mexican farmers.

Given the fact that the foundation’s programs have positively impacted tens of thousands of New Mexicans—it’s not surprising that the Thornburg family has decided to increase the asset base to $108 million, elevating it to one of the top five foundations in the state.

Another benefit of strategic philanthropy is increased family involvement. Because family members select the areas and help develop the strategy, they remain deeply engaged in the work of their foundations when they employ a strategic approach. The Thornburg family members personally commit time around each of these issues: visiting our farming and ranching partners, hosting roundtables on good government reforms, writing op-eds in support of home visits, and personally engaging with leaders in our community on education issues.

Helping Your Clients Extend Their Philanthropic Reach

Philanthropy was once viewed as a strategy for parking money at the end of the year to get a tax break. Today, philanthropy provides high-net-worth clients with an avenue that allows them to engage in meaningful activities while they’re alive and enables them to establish a legacy that will last generations.

Unfortunately, when it comes to philanthropy, wealthy clients often leave financial advisors out of the planning. According to a November 2015 survey conducted by Foundation Source, the nation’s largest provider of comprehensive services for private foundations, less than 12% of respondents reported that they turn to their financial advisors for advice on giving. Instead, 35% said they seek advice from a philanthropic peer and 28% said that they turn to no one.

To ensure you are included in your clients’ philanthropic decision-making:

  • Position yourself as a Legacy Wealth Manager.
  • Introduce clients to the benefits of creating a wealth plan that addresses all of their financial, life, and philanthropic goals.
  • Work with clients to determine the best way to engage all family members in “shaping the family philanthropic agenda” from goal setting through implementation and monitoring.
  • Provide your clients with information on impact investment opportunities, particularly those that are aligned with their family interests and philanthropic goals.
  • Discuss the advantages and disadvantages of all of the available investment and distribution strategies.

At a time when differentiation is so important for financial advisors who advise high net worth families, becoming well versed in philanthropy is mandatory. Advocating a strategic philanthropic approach is just one of the ways you can assist your clients with their philanthropic planning.

Discover more about:

Stay Connected

Subscribe now to stay up-to-date with Thornburg’s news and insights.
Subscribe

More Insights

Advising Clients

The Death of the 60/40 Portfolio? Think Again.

If investment print and internet article headlines give you anxiety, you've come to the right place. In this podcast, Jan shares ideas that may prevent your blood pressure from spiking the next time you read an alarming headline. Plus, the debut of the Ask Jan segment.
Global Equity

Navigating the Post-COVID Resurgence in Travel and Hospitality

As the storm that crushed the travel and lodging industries clears, we see post-Covid investment opportunities and pitfalls in the skies ahead.
Markets & Economy

Is the Fed Gambling with Markets & the Economy?

Jason Brady believes “We're not going to see anything near the Fed's 2% target inflation… forcing the Fed to continue to be very hawkish."

Our insights. Your inbox.

Sign up to receive timely market commentary and perspectives from our financial experts delivered to your inbox weekly.
This field is for validation purposes and should be left unchanged.
Feedback