Jean-Pierre Conte is chairman and managing partner of Genstar Capital, a private equity leader and philanthropist.
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As business leaders, we’re constantly focused on where we should devote our time and capital. We’re thinking about who to hire, where to invest and how to grow a business. I believe this same mindset can be applied in service to philanthropic efforts.
The Importance Of Shareholder Value In Business And Philanthropy
Modern businesses have a primary goal: Maximize shareholder value. The same is true for nonprofits. Rather than monetary returns, the primary goal is maximizing impact—providing the best quality of service to as many individuals as possible.
If we operate with this lens—that all of a nonprofit’s actions are in service of a primary goal—we can see how a nonprofit draws many similarities to high-stakes business. For example, I’m on the advisory board and a financial backer for a nonprofit called Sponsors for Educational Opportunity San Francisco. The organization supports students on their path to becoming first-generation college graduates. The nonprofit was struggling with leadership and the board decided, much like in private equity, to bring in new leadership. The effect was multiplying—the organization was able to serve five to seven times more students in the Bay Area.
How To Maximize Your Philanthropic Impact
As a donor, I believe hands-on involvement and insistence on measurable outcomes are the foundation of maximizing impact. However, before you can begin maximizing a nonprofit, you also have to maximize your own giving. Here’s how:
Choose a cause that aligns with your values.
As with any investor, no matter how much money you have, capital is always finite. So, it’s important to consider which organizations you will support. I like to focus on a couple of key causes—the most notable among them is education.
My interest in education is rooted in my family’s story. My father fled war-torn France and my mother fled communist Cuba, both coming to America in search of a better life. In the United States, my father worked as a tailor and clothing salesman to the city’s premier financiers. His clients became mentors of mine, helping me achieve my college education and enter into the business world. Now, many years later, I am focused on returning the favor through organizations like SEO San Francisco, but also 10,000 degrees, which similarly focuses on helping students achieve college dreams.
I encourage each of you to identify what you are passionate about supporting—whatever it is, there’s likely a nonprofit out there that aligns with your values and passions.
Be strategic.
Spreading capital around without a vision significantly reduces the impact one can have on meaningful causes. Identifying key causes and deploying capital with a plan is key. Just like with investing, a smart philanthropist should always do their due diligence. I also look for organizations where I know that I can have an outsized impact on furthering a specific mission.
Be willing to make hard decisions.
Deciding to bring in new leadership at SEO San Francisco wasn’t an easy call—but it was one that had to be made and we can already see the positive impact it’s had on the organization. As a major donor, you’ll be (and you’ll want to be) involved in these big decisions—making the right ones and the hard ones will be key to maximizing the positive impact of your dollars.
There has never been a greater array of causes and nonprofits that could benefit from the support and experience of today’s business leaders. Using your expertise and exploring your passions through strategic philanthropic involvement is one of the best ways to give back.
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