Wealthy and Wise: Philanthropic Trends In The Shared Residence Industry - Part 1

To give away money is an easy matter and in any man's power. But to decide to whom to give it and how large and when, and for what purpose and how, is neither in every man power nor an easy matter. 
- Aristotle, NICOMACHEAN ETHICS

Along with exceptional wealth comes special sets of concerns - from moral to political, and certainly, emotional. One such issue reminds us of the old adage that Texan farmers say about money and manure – they only work if you spread 'em around. Yet, unlike the physical work of taking a pitchfork to the heap and spreading it in the garden, the soul work of philanthropically spreading wealth is a bit more, well, variegated.

In our deflated economic environment, it would seem that the philanthropic instinct would also be deflated, but as of this writing, a complex economy appears to optimize the social conscience, not depress it. Those who still have are more than willing to share, even in recessionary times. According to Giving USA: The Annual Report on Philanthropy, in 2007 people gave approximately $300B to charity, with the average change rate during a recession has been a drop of only 1%.

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Adam Capes, CEO of Equity Escapes, says, “Over the past 2-1/2 years, since our inception, we've donated nights held by our management company to numerous charities and non-profits to help them raise money. And our trips have raised around $100,000 per year for different causes in 2007 and 2008. While many of these causes are based where we are in Atlanta, Georgia, we've also raised money for causes in other cities, including New York City, St. Louis, and Milwaukee. Our 3 night donations, generally used as silent auction items, have raised as much as $10,000. Our company culture places huge importance on giving back to the communities we and our owner members live.”

Different from Equity Escapes, the businesses mentioned below have a philanthropic dimension built-in to their models, and are thus allowing their potential members, active members, and charitable others to do good as they do well.

Elite Destination Homes creates small, private partnerships to own extraordinary vacation homes in some of the world’s most desirable and exclusive destinations, including New York, Florida, Colorado, Europe, the Caribbean, Mexico, and more. The Legacy Portfolio Foundation is the philanthropic component of Elite Destination Homes. It provides a select few investors significant ownership and flexible enjoyment of several remarkable homes in locations like Kauai, HI; Vail, CO; and Cabo San Lucas, Mexico. In the process, The Legacy Portfolio will generate approximately $1.75m in contributions for charities that help disadvantaged and at-risk youth.

“We are in an unusual business that provides exceptional homes and experiences for exceptional people -- the Legacy idea just seemed like a natural outcropping of all of these things” says CEO, Bill Bisanz.

It is a 501(c)(3) established to help nurture the physical, emotional, spiritual and developmental needs of at-risk and disadvantaged children in the US and abroad. The purpose of the foundation is to identify the very best charities serving this same mission and distribute funds to them. Here are some that The Legacy Portfolio has helped recently:

• Mustard Seed Youth Ranch
• Feed the Children
• Mel Blount Youth Home - Vision
• International Justice Mission

The Legacy Portfolio suggests a $16,500 earnest contribution to reserve a spot. This money is entirely refundable and will be applied to the first year’s annual dues should you choose to purchase an interest. The purchase price for the interest is $400,000. Partners will be able to write off 10% or $40,000 of the investment as a charitable contribution.

The Society For Leisure Enthusiasts, called The Society, is an international portfolio of more than 5,000 luxury vacation rentals for travelers who wish to experience the benefits of a destination club (concierges, private chefs, airport transfers, etc.) without the membership fees. Founded in 2008 by two Oxford University graduates, the Society is becoming known as much for their charitable successes as it is for the high-end vacation home and villa rental program.

The Society's philanthropic arm is called Vacation Homes for Charity. Co-Founder, Michael McFadden, states, “The Society is utilizing our resources to bring ease and efficiency in sourcing luxury homes for fundraising events. This initiative is offered by The Society’s Luxe Alliance partners and residence owners who wish to “give back” to the community.” McFadden continues, “We are using our technology platform to assist non-profits and charitable organizations to source quality vacation homes for their auctions and other fund raising events.” VH4C is continually adding new homes to their selection of donations. The homes range from comfortable 2 or 3 bedroom condos to extravagant 8 and 9 bedroom estates. These homes are auctioned or raffled at fund-raising events and can raise anywhere between $2,000 and $50,000.

“Our goal is to help charities raise the most amount of money they can. By providing a service where donors and charitable organizations can meet, we are able to increase the “economy of giving.” Many people attending fund-raising events will take vacations in the next 12 months. If a charity can offer a meaningful vacation then they likely to capture a larger donation. Its truly a win win situation.”

Here are a few of The Society’s participating charities for 2008/2009.

• Attention Homes, Shelter for YouthCalifornia Baptist University
• Children’s International Summer Villages (CISV)
• Cystic Fibrosis Foundation
• Deschutes Children’s Foundation
• Discover the Marconi Foundation for Kids
• Everyday Miracles Helps Children with Autism
• First Candle/SIDS Alliance
• Giving Children Hope

Many others are highlighted on the Vacation Homes For Charity website.

Abercrombie & Kent Residence Club is an equity-based destination club, associated with the world renowned Abercrombie & Kent, a company founded over 50 years ago that deals with exceptional travel experiences.

Reflecting Geoffrey Kent’s passion for experiential travel, Abercrombie & Kent is dedicated to preserving the natural and cultural heritages of communities around the world. Over the past 25 years, A&K Philanthropy has supported global causes focused on education, conservation and health. What this means to members of Abercrombie & Kent Residence Club is to be allowed the opportunity to become actively involved in philanthropic efforts both in and around the residences and the destinations.

A&K’s philanthropic initiatives are spearheaded by Abercrombie & Kent’s Vice Chairperson, Jorie Butler Kent. “Members have the opportunity to become actively involved in philanthropic efforts,” she says, “ It is all part of our effort to promote socially and ecologically responsible travel worldwide.”

Projects selected for 2009 include:

• Kenya: Nyumbani Children’s Home, Nairobi - Nyumbani is the first home for AIDS orphans in Kenya. A&K’s support helps to provide the best available medical, psychosocial, academic and spiritual care.
• Egypt: Workshop for Handmade Goods, Cairo - This workshop empowers women from the most impoverished areas in Cairo by helping them support their families through the production of high-quality hand-made products.
• Peru: Niños del Arco Iris (Children of the Rainbow), Cusco, Urubamba - This multifaceted project assists deprived children in the Sacred Valley of the Incas by providing them with education, food, housing, medical and dental services.
• New Zealand: Kiwi Encounter, Rotorua - AKP supports the National Kiwi Trust in its effort to increase the numbers of this beloved national bird. Without human intervention, the kiwi survival rate is only 5% in the wild. .
• India: Deepalaya School, Delhi - This school supports the education of destitute and handicapped students. Their Education on Wheels program provides a mobile bus that reaches children at risk — those working or unable to attend a traditional school.
• In May 2008 Cyclone Nargis devastated Myanmar’s Irrawaddy Delta region. Abercrombie & Kent’s office in Myanmar quickly mobilized teams to gather and deliver essential supplies, reaching more than 17,500 people in the first three weeks after the disaster. AKP donated funds and reached out to friends and family for assistance, raising more than $540,000 in total.
• In addition, philanthropic journeys are another important component to the A&K travel experience. Below are some of the journeys scheduled in 2009:
• A Transforming Journey Through Thailand (September 19-29, 2009)
• Enrichment Through Service in Southern Africa (October 4-13, 2009)
• Conservation Consciousness in the Galapagos (Oct 22 – Nov 1, 2009)
• Fighting Climate Change in Antarctica (December 7-20, 2009)
• Kilimanjaro: To the Summit on a Mission (December 26, 2009 – January 6, 2010)East Africa Conservation Safari (January 9-18, 2009)

Other philanthropic strategies used by private residence clubs, and high end destination clubs will be discussed in Part 2. Stay tuned.