I suspect very few Utahns feel financially secure these days. I know I don’t. This is certainly a matter of relative perspective, but for whatever reason, I don’t find myself looking at our family savings account thinking, “Hey, we have extra here that we can’t use, we should find a worthy cause to support.” My sense is that our future is uncertain enough and our family young enough that we should save for a “rainy day.” Additionally, we don’t have the kind of estate plan that suggests we give to charity primarily to minimize our taxes. We generally pony up, willing to do our part, grateful for opportunity and happy to live in America.
I consider myself both a skilled entrepreneur and a practiced investor. I have launched several businesses and guided them through stability and growth. I have managed the investment of over $150 million in private Utah companies. I see myself as a builder and creator. I was a founder at Mercato Partners, vSpring Capital, the v|100 and Junto partners. I am comfortable with chaos, accountability, trial and error, uncertainty and risk. I also consider myself to be service oriented, freely giving of my time and resources to help others, especially younger aspiring entrepreneurs. This is also a matter of relative perspective, but in my heart, I seek to do the ‘right thing.’ I am not always sure how to best help others to bring about positive and persistent change, but I try.
I have personally invested a few million in the private equity of companies over several years and feel like I am getting better as I go. On the other hand, I have personally donated several million to Utah non-profits and don’t feel any smarter or more effective for the effort. If anything, I feel less confident in my philanthropic decisions. From my experience, I offer some observations here but in doing so I recognize that this may not represent anyone’s experience but my own. So please be patient with me as I learn.
In my private equity investing, I have taken a thoughtful approach in identifying promising industries and investment targets, and in selecting industry-leading companies with great potential. In my non-profit giving, I have followed the patterns of others without giving much critical thought to their performance or potential.
In my private equity investing, I have taken an exhaustive approach to pre-investment due diligence; investigating management, strategy and deliverables. In my non-profit giving, I have never once made a reference call or closely examined a strategic plan. As I write this, I feel a sense of embarrassment with this confession. But, that’s the painful truth.
In my private equity investing, I have taken a pro-active approach to improving investee company’s performance by making valuable introductions, providing strategic insights and participating in appropriate governance. In my non-profit giving, I typically have no relevant or meaningful communication with the non-profit after giving. There is minimal accountability of communication.
In some ways, I’m like the builder whose home is in disrepair, the mechanic with the unreliable car or the doctor in poor health. Certainly it happens, but it doesn’t make much sense. My inability to be confident in my giving, my inability to feel sure of my philanthropic choices, or my inability to feel empowered diminishes my enthusiasm for philanthropy. In many ways, this is my issue. But, it goes against the entrepreneurs’ motto to give up on something worthwhile because it’s hard or uncomfortable. The question becomes, what kind of philanthropy is attractive to people like me, whose ideas may be more valuable than their bank account?
Utah’s complex issues cry out for innovation and a new generation of stewards: A generation willing to commit financial and intellectual capital to the complex problems facing our state, a generation willing to work together to bring the full diversity of Utah’s resources to invest in our communities.
My growing sense is that effective solutions will come in the form of innovative business models and opportunity driven approaches born of “out of the box” thinking. We’re going to have to take some risks, try some things, fail a few times and persist. I believe the rewards will be worth the effort. I think our grand kids would agree.
Utah’s pioneer heritage has spawned a culture of creative ‘can-do’ entrepreneurs. Ours is a dynamic, growing economy, driven in large measure by incredibly talented people growing successful businesses dedicated to solving market needs. My sense is that these entrepreneurs are the most underrepresented group in the Utah philanthropic conversation. There may be several explanations for this, all of which I have uttered on one day or another:
“I will engage in philanthropy when I get a bit older and the intense part of my career is behind me.”
My sense is that in the coming decades, my personal network will become less relevant, my knowledge will be less current and my capacity to work hard for long hours will begin to diminish. Our ability to be creative, influence others and bring about change will peak with our careers. Looking to get involved now may increase our impact. Sustainable solutions created today have greater value due to their compounding effect.
“I’m really not wealthy enough to make a difference now.”
True, if it were about money. Like a start up, some capital may be required to lubricate the machinery. But I can tell you that most new business ideas thrive on credibility enhancing strategies, networking for ideas and knowledge, negotiating access to strategic assets, partnering to accelerate progress and financial bootstrapping. The philanthropic landscape in Utah may benefit from the tactical ingenuity of our entrepreneurial community and their capital efficient growth models.
“I donate consistently to the LDS Church and maybe that should be enough.”
The LDS Church certainly contributes to many cherished aspects of our community and supports many important causes. It’s my belief that the appropriate goals and missions of the Church naturally channel resources outside the state as well. It seems to me that there are many causes around child welfare, the arts, affordable housing and our environment where opportunity remains unaddressed. Charitable giving choices are personal choices, but if we all take this stance, the Utah we pass to our children and grandchildren will not be the same as that given to us by our parents.
The mission of the Community Foundation of Utah is to harness our entrepreneurial spirit in service to the common good through smart philanthropy. We welcome your participation and need your energy. You see, we believe in the wisdom of crowds. Our success will depend on the participation and endorsement of a diverse group of independent minded Utahns. Not perpetuating the current approaches without challenge, but a blend of experiences and perspectives, through a process of disagreement, contest and debate that will reveal a more expansive set of alternative solutions to our problems.
We invite you to join us on this journey of change. Donate your best critical thinking; your best ideas. Introduce these ideas to others who might be thinking philanthropically. Tell us of the opportunities and obstacles you see before us. Join us in thinking big, in challenging ourselves. Join us in something difficult yet worthwhile. Join us in working to preserve Utah for future generations.
Greg Warnock, Founding Chair of the Board of Trustees
