How can the ecosystem help wealth holders on their philanthropy journey?
After getting started in philanthropy, you quickly realise there is a whole body of knowledge and professional practice associated with giving money well, not to mention the thousands of charities and the many different ways you can support them.
The philanthropy sector is an ecosystem of different kinds of organisations, including other donors, that help you to navigate how you can use your wealth for social and environmental good.
This ecosystem plays a very important part in philanthropy because it helps you to get the most out of your giving and to move along your donor journey. And it doesn’t just help with giving. There has been a growth in the provision of professional support for those who wish to manage more of their wealth in ways that align with the social or environmental impact they want to see, including through social investment and impact investment.
Organisations in the philanthropy ecosystem cover a range of disciplines. Here is a brief description below of the main ones.
- Membership bodies – there are several membership bodies in the philanthropy sector and impact investment sector that can support you with knowledge, resources and best practices.
- Philanthropy advisers – specialist philanthropy advisers you can work with to develop your giving strategy and support you over time with the execution of that strategy and monitoring of results. There are independent philanthropy advisers and specialist consultancy firms. Philanthropy advisers can also be found in some wealth management firms.
- Researchers and think tanks – there are a number of think tanks and research
organisations whose work addresses how civil society operates in the UK. They assess the wider landscape: where there is need, what interventions are successful and what additional policy changes are also needed. - Lawyers, accountants and financial advisers – professional services providers can
provide you with support to establish efficient and effective structures and help your
philanthropic giving. This may include ensuring giving is included in financial modelling and planning, setting up a specific giving vehicle, advice on tax, administration and compliance with any relevant regulations. Financial advisers may also be able to help you to consider your social investment or impact investment options. - Community foundations and intermediary funders – intermediary funders are
fundraising organisations that pool and channel funds to particular places and causes. There are 47 community foundations across the UK all of which have specialist knowledge about the needs of their communities. Community foundations and intermediary funders can either connect you with specific charities or pool your funds with others as part of a collective or local giving effort. - Donor advised funds – these providers offer an umbrella structure which allows you to set up and run your own regulated giving vehicle, with outsourced administration. Donor advised funds can also supply advice if you need guidance about where to allocate your money.
- Donor networks and giving circles – there are a growing number of donor networks and giving circles in the UK that provide a mechanism for like-minded donors to collectivise their knowledge and their giving. See the learning from others page which explains more about these networks.
- Major donor fundraisers – many charities have dedicated major donor fundraisers who understand that philanthropic donors want to give strategically. Their role is to manage the relationship between major donors and the charity. It is important for donors to remember that most of the resources of charities are focused on the mission, so major donor fundraisers are an important conduit of information about the work of the charity.
- Giving platforms – there are a growing number of technology platforms that provide information about different charities, that support fundraising efforts and that enable match funding campaigns which target particular causes and issues.
It is important to note that charitable activity is regulated in the UK. There are three regulators:
This ecosystem can help donors to navigate the rules that apply to charitable giving and understand where all of the other stakeholders sit in the sector.
Should I do this on my own or with others?
Philanthropy is essentially a collaborative activity. If you are trying to support social or environmental change, then it is important to understand the needs, the context and who else is involved in a particular issue or cause. Philanthropy is a small intervention in a much larger system and effective philanthropy is always done in partnership with others.
If you want to go fast, go alone, if you want to go far, go together.
African Proverb
Sylvia Brown
“It’s a challenge to convince people to spend time and money researching their donations. But I am absolutely convinced that more enlightened donors will seek out and support charities doing the best work“
Laura Montgomery
“It has been such a rewarding process of engaging with the individuals we want to support, and we have been in a unique position to be in full listening mode and to be open to them and their inputs.“