Archive for the ‘Next Generation Philanthropy’ Category

After The Giving Pledge: Giving Behaviour of 22 Donors

June 4, 2013

In February this year, the Gates Foundation announced that the Giving Pledge, founded by Warren Buffett and Bill and Melinda Gates in 2010, would for the first time extend its invitation to wealthy donors outside the US.  They added twelve signatories from eight non-US countries, bringing the total number of those who have so far taken the Pledge to 105. In response to this announcement, we conducted a survey of our own network of philanthropists to gauge their attitudes to the Pledge, the results of which can be viewed here. The findings of the survey raised several interesting points, of which the question of timeframe over which to disburse philanthropic assets was one.

To drill deeper into this issue, and to respond to interest from alumni of our donor education programmes, we asked philanthropists within our networks about the rate at which they intend to deploy their philanthropic assets.  They provided us with the following response about their giving behaviour.

About the 22 donors who responded to our survey

  • They come from the UK, the US, Brazil, Canada, Lebanon and Mexico;
  • They give away an annual average of $2,168,050;
  • Their foundations have an average endowment of $79,081,250;
  • Their areas of philanthropic giving, in order of frequency, are: education; children and youth; community re-generation; environment; healthcare; international development; women and girls; board governance; impact investing; reproductive health; film as a vehicle for social change; local charities; technology; transparency; human rights; encouraging philanthropy; encouraging non-profit impact; alleviation of poverty; religion; and historic preservation.
  • Eight donors had made provision for their families to pursue their own philanthropic goals separate to their own philanthropy.  Eight had not, and four others had not yet decided.

The rates of their giving

  • Of the twenty-two donors, seven had decided the precise time-frames within which they were looking to give away all of their philanthropic capital.  Three of them aim to do so within the next ten years; two of them aim to do so five to ten years after their death; one over the next five to eight years; and one over the course of the next twenty years.
  • One of the donors commented that “I strongly believe that philanthropy can be more effective when driven by the wishes and strategy of a living donor. Long-lasting philanthropic institutions can become sclerotic and bureaucratic, not always but often. Family foundations may end up with their hands tied, by a legacy directed at tackling a social problem that no longer exists. Innovation and risk taking is often reduced.
  • Another stated thatRisk taking and innovation are crucial for philanthropy. Philanthropy needs to be able to adapt as social problems and the needs of society change over time.”

The percentages of their giving

graph

The values and beliefs that drive their giving

  • “Partnership: the more we (civil society, philanthropists, NGOs and activists) can work together towards a cause, the faster we can move the needle.  Engagement: not only personal engagement, but moral and legal and financial engagement.  Empower the organisation so they do the best they can to move the needle. Help the executive team to excel in their strategy and operations to achieve their mission and reach goals they have set with their trustees (and other constituencies).”
  • “I focus on leadership and because my funds are limited, I support smallish charities with dynamic leadership in unattractive and unpopular fields where it is difficult to raise funds.”
  • “Philanthropic capital should be deployed in the most strategic way possible.”
  • “I generally believe in addressing the needs of underserved poor in the neediest parts of the world (where I have worked for much of my professional life), not the arts or environmental needs so popular among donors here at home, or SOBs (symphony, opera, ballet) – as much as I love them personally.”
  • “Everybody deserves the opportunity to grow in a safe environment, with responsible, caring and self-sufficient parents, as well, to receive quality education. Seeing how many individuals and communities have improved their lives as a result of my father´s work in philanthropy is the best example of the importance of philanthropy in my life.”

www.instituteforphilanthropy.org

For more information please contact:

Mary Glanville

Mary.Glanville@instituteforphilanthropy.org

+44 (0) 207 2400626

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Sharing ideas: the Nexus Europe Youth Summit and Module Three of The Philanthropy Workshop

May 15, 2013

On Saturday the 11th May, we had the great pleasure of taking part in the Nexus Europe Youth Summit on Innovative Philanthropy and Social Entrepreneurship at The Clubhouse in Central London. In the words of the organisers, the Summit “brought together philanthropists, investors, social entrepreneurs and allies under the age of 40 from across Europe, to inspire new leadership, greater generosity and more strategic investing in social and environmental projects”.

The Institute organised a breakout session in the afternoon under the headline, “New Models in Philanthropy – If it ain’t broke why fix it?”; Mary Glanville, Managing Director of the Institute for Philanthropy in the UK, facilitated an animated discussion between two eminent philanthropists with different approaches to giving, Fran Perrin and Marcelle Speller. Fran is the Founder and Director of the Indigo Trust, a grant-making trust that funds technology-driven projects that bring about social change, largely in African countries; and Marcelle is the Founder and CEO of the online fundraising platform for small and local charities, Localgiving.com.

The session kicked off with a discussion around the role of philanthropists today. Fran put forward the view that philanthropists ought to use their unique position to fund innovative, potentially risky, projects that the Government cannot. In some cases, that might mean providing capital in order to test a new model for delivery (governments often find it difficult to invest in “unproven” organisations or models). Marcelle agreed that philanthropists need to recognise their comparative advantage in the social change ecosystem by providing “more than money”: philanthropic investments must add up to “more than the sum of their parts”, and effect change well beyond the value of the initial investment.

Bringing “more than money” to philanthropy was a theme that ran through the discussions. Marcelle co-founded Holiday-Rentals.com in 1996, and when she sold the business in 2005 she sought to apply her business experience from Holiday Rentals to her philanthropy. Marcelle has not only built a successful platform from which oft-overlooked social groups can raise money and awareness of their work, but she’s also leveraged substantial funds from other institutions, including Government. Earlier this year, Localgiving.com ran a matched fund which raised an impressive total of £1.2 million from an initial £500,000 investment from the Office for Civil Society.

Fran has similarly applied her professional skills to her philanthropy, using her extensive knowledge of online and digital technologies to assess grant applications and offer advice to Indigo Trust grantees. However, whilst Fran and Marcelle have applied their substantial existing experience to philanthropy, they both recognise the need to network and learn from others. For Fran in particular, this is also about publicly sharing detailed information about the grants the Indigo Trust makes. This strong belief in funder transparency has led Indigo to sign up to the International Aid Transparency Initiative (IATI), a consistent way of publishing information about international aid.

Sharing insight and experience lies at the core of the Institute’s flagship donor education programme, The Philanthropy Workshop (TPW). TPW provides a confidential forum in which philanthropists may seek advice of their peers, get feedback, and share learnings from achievements (and failures!). This week, members of Cohort 19 of TPW are convening in New York for the third module of learning of the programme. Participants will gain practical knowledge on essential tools to measure results, learn about advocacy as a tool for social change, and receive constructive feedback on their individual strategies for giving. Upon graduation from the Workshop, they will join a supportive group of TPW alumni with whom they will continue to network and develop their knowledge of philanthropy.

For information about joining the next cohort of TPW, please see here or contact The Philanthropy Workshop team at tpw@instituteforphilanthropy.org or on +44 (0) 207 040 0262 (in the UK) or +1 212 513 0020 (in the US). 

Relative Values: A conversation on philanthropy across generations

March 22, 2013

Last week, the Institute and Barclays hosted an exclusive event in central London on the topic of family philanthropy. Three prominent philanthropists – Hannah Rothschild of the Rothschild Foundation, Anna Southall of the Barrow Cadbury Trust and Katherine Lorenz of The Cynthia and George Mitchell Foundation – formed a panel, facilitated by Mary Glanville, Managing Director UK of the Institute and introduced by Emma Turner, Director of Client Philanthropy Service at Barclays Wealth and Investment Management, to discuss their personal experiences of giving with an audience of over forty philanthropists.

At the Institute, we regularly consider the issues around next generation philanthropy – both in our education courses for donors as well as in our knowledge development programme – and we appreciate the unique challenges and opportunities that arise when giving as a family. As one panellist said, “family philanthropy can be very difficult – it can sometimes feel as though you have to choose between social impact and your relationship with your family”. Mary facilitated an informative and lively discussion between the panellists, who spoke frankly about their own experiences and in so doing provided practical advice to our audience. Here are some highlights of their discussion:

  • Getting involved in your family’s philanthropy can serve not only to develop understanding of best practice in philanthropy, but can also assist your professional career. One panellist explained that her experience of being a trustee at a young age gave her invaluable knowledge of governance which she used very successfully in her independent career. The knowledge transfer has worked both ways for each of our panellists as expertise gained in their respective careers has also given added dimension to their family’s giving.
  • It’s helpful to encourage the next generation to get involved in philanthropic activity at a very early age – perhaps by ring-fencing small sums of money and asking them to choose how to give it, or getting them to do a pitch on behalf of their chosen charity to the trustees of the foundation.
  • Recruiting trustees and staff members who are not members of your own family can be pivotal in bringing balance in structures dominated by family dynamics, as well as a different perspective to board discussions. You can also gain valuable issue-area expertise that members of your family may not already bring to the table.
  • Recognising the value of your name may enable you to use all of your assets for good; one of our speakers’ trusts took a strategic decision to allow grantees to say that they had received philanthropic money from them as they saw that it helped the groups they support to leverage other funding and strengthen their advocacy initiatives.
  • Think about the future of your family’s trust: consider setting a strategy that means the trust isn’t restricted to funding very specific issues in the future if they are no longer relevant. This may allow each generation to shape the focus of the trust and to ensure that its work is always appropriate for current needs.

The Institute for Philanthropy will be running a two-day education course for next generation philanthropists in London in June. For more information about this course, or any of our other donor education programmes, please contact the The Philanthropy Workshop team on: tpw@instituteforphilanthropy.org

A response to the Giving Pledge announcement

February 19, 2013

The Giving Pledge is the most high profile public campaign promoting philanthropy among the wealthy. A unique, international survey of high net worth individuals has been conducted by the Institute for Philanthropy which reveals the attitudes of philanthropists to the Giving Pledge.

The majority of respondents (68.4%) estimate that they will give up to 50% of their wealth in their lifetimes. Of the 26.3% of respondents who estimated that they will give at least 50% of their wealth in their lifetimes less than half (four of ten) have signed up to the Giving Pledge or adopted its principles.  Two people (5%) did not respond to this question. 18.42% estimate they will give between 51-75% of wealth; 7.9% estimate they will give over 76% of wealth.  Furthermore, the majority have already decided the way in which they will carry out their giving (in their lifetimes, or through a vehicle after their death, for example).

David Sainsbury, one of the new Giving Pledge signatories announced today, explains his motivations for philanthropy: “A number of years ago my wife, Susie, and I decided that spending any more money on ourselves or our family would not add anything to our happiness, but that using it to support social progress was something that we both found deeply fulfilling. We, therefore, decided to transfer gradually most of our wealth to our charitable trusts, and looking back that has turned out to be a very life-enhancing decision.”

The motive for the four philanthropists who completed the survey and who have signed up to the Giving Pledge or have adopted principles is “Wish to devote the majority of wealth to good causes”, not “Wish to encourage other people to become more involved in philanthropy” or “Belief that wealth is a burden on future generations”.

Interestingly, our results indicate that the number of philanthropists who have already made the decision to commit the majority of their wealth to good causes is potentially much greater than the Giving Pledge campaign implies.

This could be due to a low level of knowledge of the Pledge among philanthropists (just over half of the respondents had heard of the Giving Pledge and knew what it consisted of (55.2%) and of those who have not heard of the Giving Pledge, half are in the UK (four people) and half in North America (three from the US and one from Canada)).

There are however other factors beyond a lack of knowledge: our survey found that the most common consideration behind not signing the Pledge or adopting principles is a desire to remain private. The second most popular consideration was a wish to pass wealth to future generations.

NOTES:

  • Respondents came from seven different countries, the UK (39.5%) and US (36.8%) were the most common geographies, however we also had respondents from Canada, Mexico, Netherlands, Finland and Italy.
  • The average annual giving of respondents is $1,532,941 (result possibly skewed by two donors who are giving away very large sums of money). One third of respondents are giving away at least $1m annually.
  • Of those who have signed up or have adopted the principles of the Giving Pledge, these people are giving away at least $1m philanthropically a year
  • The timeframe in which giving will take place is fairly mixed: 26.3% said the majority of giving would be carried out during the philanthropists lifetime, 31.5% said that there would be a vehicle for philanthropy after their death, and 29% said that they had not decided yet.
  • The majority of respondents reported they believed that the Giving Pledge would result in an increase in philanthropic money (71%).
  • Many respondents expressed the belief that the role of philanthropy was not just to “throw money at problems”; rather it should be well-researched, thought through and strategically deployed for impact. As one donor said of the Giving Pledge: “money shouldn’t be the only thing acknowledged”.
  • The survey was distributed throughout an influential network of philanthropists, many of whom have graduated from The Philanthropy Workshop (TPW) programme which educates major donors in the skills of strategic philanthropy.
  • 38 people responded to the survey

www.instituteforphilanthropy.org

For more information please contact:

Daisy Wakefield,

daisy@instituteforphilanthropy.org

+44 (0) 207 2400626

PRESS RELEASE: Government funding will inspire the next generation of philanthropists

June 13, 2012

An innovative programme to raise awareness of philanthropy among young people has been awarded £303,800 from the Social Action Fund (SAF). The Youth and Philanthropy Initiative (YPI) currently works with 10,000 young people in England, developing skills through hands-on experience of philanthropy and providing them with ‘real life’ experiences of charitable giving.

Working in teams to identify the social needs of their local community, pupils select a local charity that best addresses their chosen issue. They interview staff and beneficiaries before preparing a presentation for a judging panel with the best team winning a £3,000 donation for their charity. The new funding from the SAF means the London-based project can expand to the Midlands and North West, enabling a total of 18,000 pupils to participate.

Since September 2007, 40,000 young people in England have participated in YPI and over 220 local charities have benefited from donations totalling over £660,000. An evaluation report from York Consulting, also published today, praised the success of the programme to date: “YPI is an intensive, all-round skills development package for schools, with universal appeal for young people of all abilities. Feedback from young people and the commitment shown by them shows how much they enjoy and value taking part.”

Minister for Civil Society, Nick Hurd, said:

“The Youth and Philanthropy Initiative is clearly making a real difference to communities across the UK. The money we have awarded through the Social Action Fund means this hugely successful initiative can extend its reach beyond London enabling more young people to support local good causes. It will broaden young people’s horizons, empower them to address community issues and gives them real opportunities to develop their teamwork and presentation skills. Head teachers across the country should embrace this programme.”

Alex Reynolds, YPI Director, said:

“We are hugely grateful for this support from the Social Action Fund. It will enable us to inspire thousands more teenagers across the country to positively engage with their local communities and develop a new generation of philanthropists.”

ENDS

Notes to editors

  1. For further information or to request an interview, please contact Anna Zachariassen on 07794 126211 / anna@thrivemedia.co.uk
  2. A complete list of successful applicants to both windows of the Social Action Fund is available at http://www.thesocialinvestmentbusiness.org/our-funds/social-action-fund/winners/
  3. The Social Action Fund is managed by The Social Investment Business, on behalf of the Cabinet Office and will fund social action projects in England from civil society organisations, public sector bodies and businesses with a track record of delivering social action programmes.
  4. The Social Action Fund is part of a broader programme of support for social action that was announced in the Giving White Paper and takes its place alongside two other funding streams – Innovation in Giving Fund and Challenge Prizes.
  5. The Social Investment Business, the largest social investor in the UK, exists to help social enterprises, charities and community organisations do more of what they do best – supporting people and communities most in need. It helps organisations prosper by providing innovative financial solutions, business support and long term strategic thinking www.thesocialinvestmentbusiness.org @TheSocialInvest
  6. The Social Investment Business manages the Futurebuilders Fund and the Social Action Fund on behalf of the Office for Civil Society, the Social Enterprise Investment Fund for the Department of Health and the Communitybuilders Fund which was endowed to parent charity the Adventure Capital Fund by the Department for Communities and Local Government.
  7. It has over 1,100 active investments ranging in size and scope from, for example:
    1.  £3,600 to help a small organisation bid successfully for a public sector contract;
    2.  £6.7million to help a large national charity establish and develop innovative new services for children and young people.
  8. The Youth and Philanthropy Initiative (YPI) is an active citizenship programme that raises awareness among young people about philanthropy. The programme was launched in Toronto by the Toskan Casale Foundation and is directed in the UK by the Institute for Philanthropy.
  9. The York Consulting Evaluation of the Youth and Philanthropy Initiative is available here http://www.instituteforphilanthropy.org/content/Youth-Philanthropy-Initiative

Philanthropy Lesson #005: Think Small (with thanks to Aik Saath)

September 14, 2010

Philanthropy is a world where you often hear uncomfortably lofty language; there are times when the ambitions of donors seem grandiose, if not unattainable altogether.  Tackling climate change?  Eradicating poverty?  These are problems of great complexity, and it often seems futile even to attempt their solution.

In making such an attempt, the goal – somewhat paradoxically – is to think small; to look to the roots, and particularly the grassroots, of a social issue.  This was a lesson illustrated by Aik Saath, one of the recipients of £3,000 from our Youth and Philanthropy Initiative.  Aik Saath was formed in response to ethnic unrest between Asian youths in Slough, a town a few miles from London; its successful approach was based upon engaging carefully with those closest to the problem.  They set up dispute resolution groups composed not of external advisors, but of young people who were directly affected by the rising threats and violence.  Taught by Dr. Dudley Weeks, a world expert in the field of conflict resolution, these teenagers responded so decisively that within only two years the trouble that had so sharply flared was swiftly doused.

When looking at problems of a global scale, it’s often tempting – and reassuring – to look for grand solutions.  But more often than not, as Aik Saath have shown, it’s best to look closest to home for your answers; in other words, to think small.

Philanthropy Lesson #002: “Pass It On”

August 4, 2010

Many philanthropists, when speaking of the motivations behind their giving, talk of a desire to give something back to the community that has given them so much.  We applaud that aim; at the same time, it’s never too early to start thinking about changing the world around you for the better.  With that in mind, we’ve prepared Tomorrow’s Donors; a paper examining how family philanthropy can be a powerful tool for good, as the older generations pass down their learning to the younger ones – and learn from the younger ones in the process.  The paper features six case studies with families of donors with whom we have worked, as well as ten tips for philanthropic families as they go about their giving.