Philanthropists are changing how they interact with nonprofit organizations (NPOs) or established foundations. “Twenty five years ago,” says Richard Mittenthal, president and CEO of New York-based TCC Group, philanthropists would give money to “museums, the opera, the United Way [or] Girl Scouts.”
Now, the number of nonprofits has “exploded,” with “1.6 million in the U.S.,” alone, a number that has doubled in the past several years, Mittenthal said in an interview at his New York office with AdvisorOne.com.
At the same time, new philanthropists often come from entrepreneurial, business and Wall Street backgrounds, Mittenthal says, and performance metrics and strategic thinking inform their philanthropic endeavors. Mittenthal’s TCC Group works with wealthy individuals or families who wish to set up a foundation or giving program, and nonprofit groups that want to be more effective organizations.
Often, donors’ attorneys refer them to TCC so that Mittenthal and his team can help them “think through starting a foundation—the board, strategy,” programs and other considerations. TCC also consults with already-established foundations on their giving programs, staffing or other needs. This can include evaluating which nonprofits are most likely to use the foundation’s grants to get the fullest effect and how to get family members, including next generations, involved.
Five family foundations are actually housed in TCC Group’s offices. TCC does not manage the foundations’ endowments and the firm is not an investment advisor.