Philanthropists are often times curious to know the return they will receive on their investment and the amount of time it will take for the return on investment to reach them. For example, if a philanthropist was to invest one million dollars into an organization, than the philanthropist may expect his investment to be doubled within the next three years. If you, as the executive organization do not think this is a goal which can be reached, than do yourself and your organization a favor and do not accept the deal! As an executive of a business, a large philanthropic donation is not something in which you can afford to not pay back in the time frame you have originally set.
Not only will this provide negative exposure toward your organization, but the community will suffer as a result of your inability to produce a sizeable profit margin. Before a philanthropic decision is made, the organization executive may want to consult with other organizational board members on the terms of the philanthropic settlement in order to avoid any legal complications down the road. Once the organizational executive gets a majority vote to move ahead with the philanthropic investor, than the donation may be put in place. This will form a three way agreement between the organizational executive, the organizational board members and the philanthropic investor, which can not legally be broken by any party involved. A philanthropic donation must in no way affect the value of the organization toward the stock holders of the organization.
These are to be two completely separate businesses matters, which will not positively or negatively affect one another in regards to making proper philanthropic business decisions set in forth by the organization. Often times, stock holders will want to see evidence of the amount of good the philanthropic donation will bring to the organization and to the community. If the philanthropic investor is not able to provide a sufficient amount of evidence in terms of positively incorporating itself into the current organizational business model, than the philanthropic investor may need to rethink the process and come up with a better business alternative to the deal. Philanthropic investors, such as Jason Hope, are becoming increasingly valuable to communities and organizations who are looking for economical gains within their area.