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The Philanthropy Ecosystem: Donor educators

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The idea of the donor journey is common in philanthropy because the process is rich in learning.

Learning about yourself and your values; about the cause you want to give to; and learning from others, whether peers or non-profits; and learning through doing.

All of the members of the donor support ecosystem we have touched on so far bring some form of knowledge whether that’s philanthropy advisors informing their client of different philanthropic approaches or giving vehicle providers explaining the pros and cons of different mechanisms for giving.

In this final article of the series, we will consider those whose primary focus is on learning — the donor educators.

These educators write books and guides on how to approach philanthropy, deliver training courses, and create bespoke learning journeys.

One such educator is Derek Bardowell (right), who is CEO of Ten Years’ Time.

Ten Years’ Time creates learning experiences for donors and foundations to interrogate their wealth, unlearn harmful practices and develop holistic, equitable and reparative approaches to philanthropy.

In this interview Derek explains more about Ten Years’ Time bespoke service which helps donors deep-dive into their cause area of choice and learn how to resource racial and economic justice with care and confidence.

Why is there a need for donor education?

Derek: I think it is crucial. Levels of private giving were going down and the percentage of funds given through charitable trusts and foundations remains woefully low.

I think we need to see a significant change in the culture of giving. That’s not to say that philanthropy can solve all the current problems and issues, it can’t, but there could be more of it and it could be working harder, particularly for minoritised communities.

We’ve gone through Covid, we’ve had the killing of George Floyd and that has created a personal reckoning. People are thinking differently. People of wealth are thinking very differently. They are thinking less about legacy and more about what they do while they are alive.

This is a fantastic opportunity to change not only how much people give but also how they give. Our workshops and coaching help people understand how their wealth was accumulated, how they’re investing it, and who has been harmed by it, and encourages them to look at the whole picture so they understand how they can give their money away in a holistic way.

What do donors get from a learning experience with Ten Years’ Time?

Derek: We work with donors over a three to seven-month period, sometimes longer. We support people on a deep, personal journey and they value being able to have conversations that they perhaps can’t have in other spaces.

They are usually at a level in their professional lives where no one challenges them or criticises their work. We give them that level of challenge.

We also give our clients a firm perspective about the issue that they are dealing with, and encourage them to invest in the behavioural, policy, systemic or structural changes that might create long-term changes.

We also add knowledge that a number of clients would just not be aware of. This includes respecting the knowledge in communities. We talk about decolonisation and intersectionality in a way that breaks these down and shows donors how these are relevant to their giving.

We give donors the knowledge that means they have the confidence to invest wisely, equitably and reparatively.

Can you tell us more about the client’s journey?

Derek: Our clients will go through a range of emotions – there will be ‘aha!’ moments and times when they’re stuck in the mud. We go along the bumps in the road with them because we’re also learning alongside them. That’s important because, whilst we know a lot about some things, we don’t know everything and also because it can be lonely and difficult doing this work.

The aim is to get the head and heart working together as opposed to it being strictly about the heart.

Normally, during the journey, they will find advisors who are quite specific to their cause area and who can become their trusted advisor. We hand on the baton to them. We want clients to realise that we may leave them, but the journey should not end for them.

What has changed for donors?

Derek: There is a greater awareness of philanthropy and its role and a lot more critique. This has a dual affect: some donors are really well informed, and we can have more nuanced conversations; others are afraid to dip their toes into any of this work and a big part of our role is to absorb this anxiety.

We still cover the same themes as before, such as what is systems change, but we’ve changed who is delivering that message.

We will look at this through a gender equity lens and bring in women and women of colour as speakers, experts and facilitators.

For our clients, they are increasingly aware of the responsibility to do more than funding their old university or what’s on their doorstep and we help them to think differently about how they respond to global issues and move beyond just giving small percentages of their wealth.

Derek Bardowell is CEO of Ten Years’ Time and author of Giving Back: How To Do Good, Better

derek@tenyearstime.com

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

Read the rest of Emma’s Philanthropy Ecosystem series:

The Philanthropy Ecosystem: Giving vehicle providers

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Once a philanthropist commits to thinking about their philanthropy as a long-term activity, they need to decide which giving vehicle to use.

This vehicle will support them to ring-fence their money for charitable purposes and help manage its distribution and the involvement of family members.

Foundations

The traditional option has been setting up a foundation.

This is a regulated charity set up for public benefit, which makes grants in support of the chosen cause areas. It remains a popular model with almost three quarters of global foundations being set up in the last 25 years.

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The main downside is that it involves time, effort and some costs to administer because it involves setting up a legal entity that needs to report on its activity and comply with certain standards.

Donor-Advised Funds (DAFs)

The Donor-Advised Fund or DAF has become popular as a less time-consuming alternative.

The funds in a DAF are still committed to be used for public benefit but the DAF provider takes on the administrative burden. DAFs have been criticised because the money can sit in the fund and not be spent and so the donor can gain from the tax incentive before any money reaches a charitable cause.

However, they are also seen as an accessible mechanism that encourages giving and can certainly help a donor to act on their intention to be philanthropic whilst they work out exactly how they will give.

DAFs have increased in popularity over the last decade and there are many UK providers including Stewardship, Prism, CAF and NPT-UK.

Rosemary Macdonald

Community Foundations

In this interview, we spoke to Rosemary Macdonald (pictured right), CEO of UK Community Foundations, about the role of Community Foundations as providers of giving vehicles for philanthropists.

We asked her to explain what Community Foundations are and the benefits to donors of giving through them.

What is a Community Foundation?

Rosemary: Community Foundations cover every postcode in the UK.

They are based in a particular geographical area – a county, a city or, in the case of Scotland, Wales and Northern Ireland, a country.

Community Foundations build an endowment from lots of different funders and use this as a sustainable source of funding to distribute grants locally.

They mainly support the smaller, grassroots charities in their area such as a Scout troop, older people’s lunch club or bereavement counselling service.

Community Foundations also play an important role in encouraging philanthropy locally; providing insight on local needs; and take a convening role in bringing the statutory, private and statutory sectors together to address long-standing issues such as knife crime or poverty.

Our role is to find the balance between the funders and the needs of the community – we sit in the middle as the translator and advisor to both, which is a unique position to be in.

What giving vehicles do Community Foundations offer?

Rosemary: There are three main ways we work with donors:

1. Named Funds – this is what we call DAFs. For those giving above a certain level, we offer a bespoke fund where they can give to the issues they care about. When donors set up a fund they get a fund agreement which sets out how the funds should be directed, reporting requirements and contribution to costs.

The Community Foundation manages the grant process, carrying out the due diligence on the groups supported to make sure they are the right fit and doing the right thing. The level of engagement varies with some donors wanting to see the applications and deciding which groups they want their funds to go to.

2. Pooled funds – This enables donors to combine their funds with others to address a particular issue such as young people, the arts, or a specific geography.

3. Flow-through funds – This is where a donor wants their money to be used immediately, often in response to a local appeal such as funds to support those affected by the cost-of-living crisis.

What is the benefit to the philanthropist of giving through a Community Foundation?

Rosemary: If a donor wants to make a real difference in a specific geography then they will find the best quality of advice from their Community Foundation.

They will have access to groups they would never come across who are doing amazing things in communities. We provide insight and understanding to make sure their funds go to the right people and places.

Giving through a Community Foundation is a much simpler option for those who want to do something but don’t want the hassle of setting up a new charity.

The donor does not have to worry about the governance or the reporting. We handle the financial side of things and the grant-making.

What changes have you seen?

Rosemary: A positive change is that donors are much more willing to think about unrestricted gifts and trust the groups they are funding to know how best to use this money.

Another change I have seen is that people want things to happen quickly. Because we have had so many crises (Covid, the floods, cost-of-living), donors seem to want to get their money out the door very quickly.

This has had a negative impact on Community Foundations’ ability to build their endowments. It is vital that Community Foundations have these endowments to provide long-term sustainability.

Most of the issues in communities are not going to be solved in three years.

Having an endowment enables more strategic grant-making where we can support longer-term solutions. We can fund groups for longer periods and give them the stability they need to do their job.

Groups will have a greater impact on people’s lives if they are not constantly worrying where their next funding is going to come from. We need donors to think about investing over the longer-term.

With thanks to Rosemary Macdonald, CEO, UK Community Foundations

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

Match funding is so powerful — especially when it quadruples donations

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Four crocuses

By Jane Cabutti, Environmental Funders Network

This month at the Environmental Funders Network we are busy working on the Green Match Fund – an annual campaign with the Big Give to raise money for environmental charities and to raise the profile of environmental philanthropy.

We are seeking match funding from philanthropists and foundations which will be used to incentivise donations from the public during the week of the campaign in April.

We are off to an excellent start: we have been offered £1 million in match funding by a private donor IF we can raise a further million in match funding from philanthropists and foundations ahead of the campaign.

This money, plus any further funding we are able to raise upfront, will be used to double donations from the public during the week of the campaign, offering a real incentive for the public to give.

Any funding that donors and foundations provide in match funding will therefore be quadrupled. 

The public campaign will run from 20 to 27 April, around World Earth Day on 22 April, and we aim to build on the amount raised last year – £2.8 million for 146 environmental charities.

Donations can go further, faster

Match funding is a fantastic opportunity for donors because it allows you to really amplify your funding without having to contribute more funds – your donations will go further and have a greater impact on the causes you care about.

By imposing a deadline and creating a sense of urgency, match funding campaigns create a sense of excitement, incentivising the public to donate even more and in a quicker fashion – and then share the campaign with others.

It is a fact that more people give, and people give more, when their donations are matched.

Who wouldn’t enjoy the thrill of seeing their donation instantly double or even quadruple?

 Who can pledge match funding?

Anyone who can commit the funds can become a match funder – whether you’re an individual donor, a foundation, a trust or a company.

The minimum match funding donation for the Big Give Green Match Fund is £10,000. You can direct your funding to the charities or issues you choose, or donate to the central fund, with projects chosen by the Big Give and EFN from those applying.

Giving to trusted sources

The Green Match Fund is an easy way for everyone – whether a major donor providing match funding or a member of the public donating during the week of the campaign – to give to trusted charities that have a big impact on the urgent climate and nature issues we are experiencing.

The Big Give has a rigorous application and due diligence procedure, and the ‘best in class’ projects that participate in the campaign are chosen by experts from the EFN and the Big Give.

Getting involved with the Big Give Green Match Fund

If you have an interest in match funding and supporting environmental causes and would like to see your donations have quadruple the impact for people and planet, then please consider pledging to the Green Match Fund.

Further details are here, or contact champions@thebiggive.org.uk.

The Philanthropy Ecosystem: The Connectors

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When we think of a philanthropist, we often imagine a ‘lone saviour’. Someone who works alone to determine how best to do good and acts alone to achieve their desired impact.

Of course this is far from the reality.

As we have already seen in this series, there is an ecosystem of support around donors (philanthropy advisors, thinkers, wealth managers) who can help them with their choices.

Philanthropists also do good through the actions of others – those partner organisations and community leaders they choose to support. Increasingly, there is a rise in collaboration, linked to the fact that the world’s problems are too big to be tackled without collective effort.

Part of the philanthropy ecosystem is made up of the connectors – the networks, platforms and collaborations that ensure philanthropy is less lonely.

They connect philanthropists to each other as well as wider learning, practice and ideas.

The Philanthropy Workshop (TPW) is part of this infrastructure supporting a global community of 400 high net worth philanthropists.

(There are others such as The Mesa and Beacon’s new Beacons Connect network which you can read about here.)

TPW was established to educate individual wealth holders and their families; providing frameworks, approaches, toolkits, principles and practices to help them have a greater impact.

Now, alongside the learning programmes, TPW is a community which provides a safe space for discussion and connection, convening peers to share best practice, to learn from and influence one another.

In this interview, Marie-Louise Gourlay, the Managing Director of Europe for TPW, tells us more about their work and how a community of peers benefits philanthropists.

Please tell us more about the work you do.

Marie-Louise: I work closely with a community of 100 philanthropists in the UK and Europe. I bring new philanthropists into the TPW community which involves understanding what they hope to do and identifying the support they need from TPW’s education and our community of peer philanthropists.

We have a core learning programme and that provides a shared framework and language, which in turn creates the basis for a shared sense of community.

TPW is officially cause-agnostic and so we focus on the process, the ‘how to’ of philanthropy. We give people access, knowledge, resources and lots of connections. We hold the space for peers to influence their fellow peers.

Our work is underpinned by our values: we are open and collaborative, promote transparency and action-oriented mindsets and we have a strong focus on equity and justice.

We really want people to move from education to action and collaboration.

How does this benefit philanthropists?

Marie-Louise: There are so many things members get from being part of TPW: education, connections, community. There is huge value in the peer to peer influencing – the ability to sit down with peers who have trodden this path before them. There’s a lot more complexity than people first realise.

New philanthropists often don’t know how to navigate the sector, are concerned they are not having enough impact and consequently some lack the confidence to move forward.

Many report feeling a huge responsibility to achieve immediate impact and that can sometimes get in the way of giving:  we sometimes hear people say: “We’ve set up a Foundation but we haven’t made a grant yet”.

We provide a safe space where they can ask anything: What are the questions I should be asking? How do I do due diligence? How do I do a field scan? How should I consider risk?  They build their knowledge, their tools, their approaches and confidence. We talk a lot about root causes, so they really understand how best to effect change at a wider systemic level.

We’ve had members who have gone on to set up their own organisations, or a co-funding arrangement or collaboration.

We can’t attribute this solely to TPW but we believe our role in holding a trusted space plays a vital part in accelerating their philanthropy and its outcomes, and there is no other community or convening space for philanthropists like it.

Another value of the community is that it is two-way. You’re coming not only to learn but also to give back, through mentorship, thought leadership, or sharing learning, failures and best practice. We encourage members to think beyond their own giving to their influence on the wider sector and how they can push things forward.

And the benefit of connecting with peers goes far beyond discussing philanthropy. It could be talking about family dynamics or prenuptial agreements.

Our community is a safe space for people to come together who are facing a lot of the same challenges such as the responsibility of stewarding wealth, understanding where their wealth came from and what that means today.

What differences do you see when supporting younger wealth holders?

Marie-Louise: In the past people felt that it was their wealth to decide what to do with and when and how to hand down.

Increasingly we’re hearing that the next generation see themselves as stewarding money that is not theirs. Younger philanthropists are more interested in changing the system and they apply different lenses – justice, climate, racial equity – rather than focus on a single issue.

We’ve also seen a shift to leading with impact.

This could mean extending their philanthropy to include activism, giving that is non-financial e.g. time, and taking a total portfolio approach. This changes the intention from “How do I do the best philanthropy? to “How do I get the greatest impact?”

A lot has changed in my eight years with TPW.

Members are now more open to the value of influencing one another and see that as part of their responsibility in driving more rapid change. They are looking to the community to share opportunities, to ask for ideas of what to fund, and to make connections.

They aren’t afraid to challenge one another and certainly hold one another to account. The culture of money as a taboo topic remains something of a limitation: our community builds trust and breaks down the entirely private nature of discussing finance.

Increasingly members are thinking about what their role – and the role of philanthropy – is in society, beyond what their own strategic interventions might be, and how to find the levers for change.

Marie-Louise Gourlay is Managing Director of Europe at The Philanthropy Workshop.

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

Where next?

The Philanthropy Ecosystem: Private Client Advisors

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Most philanthropists will have other advisors in place before they seek help with their philanthropy. These private client advisors may include wealth managers, accountants, lawyers, financial planners, and tax advisors.

The degree to which they cover philanthropy will vary as it is not the primary focus of their work. Yet they are well placed to raise the topic of giving and to help with certain aspects, such as advising on giving vehicles, as well as referring their clients to philanthropy advisors and others in the philanthropy support ecosystem.

George King is a leading wealth manager who embeds philanthropy into his work. In his role as Senior Wealth Manager at MASECO Private Wealth, he provides investment management, financial planning and financial advice to high-net-worth individuals.

Alongside this, George is on a mission to see philanthropy advice included in the wealth management proposition. As a Trustee at Philanthropy Impact, he seeks to promote philanthropy and trains wealth managers and other private client advisors.

Private client advisors

George King
Senior Wealth Manager
MASECO Private Wealth

Tell us more about the work you do

George:

My day job is directly supporting clients, most of whom have a transatlantic connection. My conversations include questions and explorations around aligning their values with their capital. This includes philanthropy alongside ESG and sustainable investing. I came to this work when setting up the Royal Bank of Canada’s wealth management offer in the UK. I wanted to infuse values and philanthropy advice in our work both as a differentiator in the market and because I believe you are not a competent or complete wealth manager if you’re not able to have these conversations. You don’t talk with clients about leaving an inheritance to their children without raising the issue of taxes. Similarly, when you talk to your clients about what money is for and what they care about, this has to include philanthropy.

Alongside my core work, I am involved in initiatives that promote the values-aligned allocation of capital. I view my role as a positive catalyst. However, I don’t consider myself as a philanthropy advisor. I am involved with ascertaining values, exploring what my clients want to accomplish through their philanthropy, helping them think through the options such as giving in their lifetime or after death, supporting local causes or systemic change. I don’t help with the last mile of the decision process – finding the specific entity to give to – so for this part I connect them with specialist philanthropy advisors.

How does your work help philanthropists?

George:

It is hard to quantify the value of this work but for people where it really matters, it matters a lot. For example, I have one client who did not set out to be rich, they just ended up in a job that meant they earned millions.

They now have more money than they can ever need in their lifetime and their kids are embarrassed by this wealth. I am helping them think through what money means to them and what it is for.

The value in this relationship is not in the discussion about the investment transactions (though that is fine too), it is in the discussion about their relationship with their wealth. The client sees that someone hears them, understands what they care about, and can help them advance their values.

For others, they are not in a position to think about moving from a traditional approach to investing right now. However, they value knowing that when they are ready there is someone there who can help them.

What should philanthropists expect from their advisors?

George:

It will vary for different types of advisors as it depends on the nature of the relationship. For example, lawyers rarely have ongoing contact with their clients; their work is usually more transactional. Wealth managers have much more of an opportunity to talk about philanthropy as we have the frequency of contact over several years that means relationships evolve and deepen.

It is easier for us to talk about what matters to our clients and what they are passionately interested in. And we have lots of time to do so because we do not bill for our time. However, any private client advisor should know enough about the philanthropy ecosystem to help their client.

They should be able to raise the issue of philanthropy in a helpful and thoughtful way and, where there is a need or an interest, plug their client into the relevant resources. These conversations should be initiated by the advisors – you don’t wait for a client to ask if there is a tax consequence or if they are taking enough or too much risk.

So it is the job of the advisor to put philanthropy on the table in a non-judgmental way. For example, is this something you are thinking about? Is this something you’ve done before? Is this something you want to learn more about now or in the future? Wealth owners should expect – and are increasingly looking for – advisors with knowledge and competence in values-related issues including philanthropy.

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

Beacon releases two reports mapping the path to growth

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In a week when Beacon was involved in the launch of two reports, a pertinent comment from one of Beacon’s close friends came to mind: “Do we need all these reports being produced by the philanthropy and social investment sectors? Is this a good use of philanthropic resource? Don’t we really need more action?”

These are fair points, especially as the mission of many of the organisations producing these reports is “to increase philanthropy and social investment by….doing something”.

While one could dismiss it as a post-Covid flurry, however, I would argue there is something more significant happening here. 

R&D matters

In 2019, the public and private sectors in the UK spent £38.5 billion on research and development, or 1.7% of GDP. 

R&D is usually defined as “…creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.”

Furthering humankind might be in the definition, but this is no philanthropic act. R&D drives innovation and it drives value – so much so, the government has set a target that 2.4% of total GDP should be spent on R&D by 2027. 

If the philanthropy sector were going toe-to-toe with the public and private sectors, even on current spend there would be £85 million spent per year on R&D to support the estimated £5 billion of philanthropic value annually contributed to public benefit organisations. 

Now there’s a thought. 

While the philanthropy and social investment sectors have an excellent track record on bootstrapping innovation, it is hard not to think of Henry Kissinger’s most famous plagiarism: “If you don’t know where you are going, every road will get you nowhere.”

Research identifies opportunity, it de-risks action and it enables progress to be measured.  

If there is a common goal, there must also be one agreed critical path

In the absence of deep R&D budgets, the philanthropy and social investment sectors have become adept at sharing.

Knowledge, ideas and insights have been shared and woven through a number of recent reports, in many cases intentionally, as different organisations build on earlier work. 

If each iteration drives cohesion around a common agenda, this is not duplication but an increasingly refined analysis of the critical path toward a shared goal.

If each organisation brings a different perspective and a fresh set of insights, this enriches the map and helps to chart the best route through tricky terrain. 

Without advocacy, we are nowhere

Philanthropy occupies a space that sits between the public and private spheres. It, therefore, relies on actions from both sides in order to thrive.

Philanthropy and social investment will only grow when policymakers are clear about their role in the public agenda and when regulators provide a targeted framework, thus enabling private sector players, as well as the charity, philanthropy and social investment sectors themselves, to professionalise their support for end donors and investors. 

This value chain isn’t functioning well in the UK.

In the absence of a clear narrative on the role of philanthropy and social investment from the government, and with regulators unable to provide targeted guidance for socially-driven action, private sector providers are left in the unsustainable position of trying to drive donor engagement through meaningful experiences in an incoherent marketplace.

To grow philanthropy and social investment, we need policies from the government that can enable the work of the sector.

Policymakers are more likely to champion the needs of the philanthropy and social investment sectors if they can offer refined, evidence-based, and agreed proposals. This kind of high-quality advocacy requires a shared platform of research. 

Unlocking private assets for public benefit

With this preamble, it will come as no surprise that the reports we launched last week included vital contributions from partners across the philanthropy and social investment sectors. 

Unlocking Private Assets for Impact is a summary of the work of the 12-month Individual Impact Investing Commission, which was co-led by the Beacon Collaborative and Big Society Capital.

Eleven commissioners, representing investors, impact investment firms and sector organisations, shone a forensic light on the barriers that prevent more private individuals from putting their capital to work in impact investment opportunities. 

The report puts the needs of high-net-worth investors in the context of the wider growth and development of the impact investing sector. It concludes that private capital flows are being choked at source due to a lack of effective intermediation between opportunities and investors.

This partly reflects the lack of maturity in the impact investment marketplace, and partly the lack of responsiveness among wealth advisers to support their clients to invest across the values-based spectrum. 

It makes 12 recommendations, supported by a detailed action plan, showing how different actors within the sector can contribute to change. 

During the same week, the All-Party Parliamentary Group held its second meeting in Westminster to launch Unleashing the Potential of Philanthropy and Social Investment.

The report offers a 10-point plan setting out how government can help the philanthropy and social investment sectors to be more effective.

This action plan is based on insights and recommendations from organisations across both sectors. It highlights the essential role that government needs to play in order to enable more private capital to flow toward social impact.

Outlining a common agenda, highlighting innovation and advocating for government support, these reports aim to encourage all those with the capacity to drive change to play their part in unlocking more private assets for public benefit in the UK.  

We, therefore, invite any colleagues to take forward the ideas outlined in these reports and to share with us actions they are already undertaking on these themes.

At its best, philanthropy is a shared endeavour. Growing philanthropy too will be an act of partnership, driven by a common goal and shared understanding.

Unlocking private assets for impact

Author(s)

The Beacon Collaborative, The Individual Impact Investing Commission (IIIC)

Year

2022

View

Unleashing the potential of philanthropy and social investment

Author(s)

The All Party Parliamentary Group on Philanthropy and Social Investment

Year

2022

View

The Philanthropy Ecosystem: Thinkers, researchers, academics

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Philanthropy can look very simple – a case of deciding who to give some money to. However, one or two steps into the journey the complexity reveals itself.

There is an overwhelming array of options to choose between and different approaches to take.

Each decision involves difficult choices: is it better to respond to a crisis or tackle the root causes of a problem?

How do you judge whether an intervention will be effective? Questions go beyond the practical to the fundamental: should you fund something which you think should be covered by taxes? Should your decisions be led by need rather than your own interests? This is where the thinkers can help.

There are researchers looking at topics including giving trends, donor motivation and measuring impact; think tanks and thought leaders are influencing policymakers and providing opinions and publishing books on what ‘better’ giving looks like.

One of these thinkers is Rhodri Davies. Rhodri has set up the new website and resource, Why Philanthropy Matters that pulls together his writing and podcasts. He is a Philanthropy Expert-in-residence with the Pears Foundation where he acts as a sounding board on philanthropy issues as well as a resource for the organisations funded by the Foundation. He is also a Research Fellow at the University of Kent’s Centre for Philanthropy, where he carries out research and helps teach on the Masters course in Philanthropic Studies. Rhodri describes his role as thinking and writing about philanthropy.

In this interview, he explains how this brings value to philanthropists themselves.

The thinkers – researchers, academics, think tanks, thought leaders

Rhodri Davies
Why Philanthropy Matters

Rhodri has written two books:
For Public Good by Private Means

What is Philanthropy For?

How did you end up as a philanthropy thinker?

Rhodri:

I originally wanted to be an academic and started out in philosophy before realising I wanted my research to be focused in the real world. By a series of happy accidents, I ended up on a research project where I interviewed philanthropists. I got to find out what made them tick and found it fascinating.
I’ve gone further down that rabbit hole ever since.

Tell us more about the work you do?

Rhodri:

I sit between academic study and practice. I step back from practice to show how philanthropy fits into a broader context but I don’t step back so far that my thinking is not relevant to practitioners. Philanthropy can easily be seen as a niche topic that sits in a corner of the charity sector. My aim is to get conversations about philanthropy to a wider audience. By framing it in the right way people can see that it is relevant to what they do and are thinking about. Take for example the relationship between charity and justice. It can sound theoretical, but it plays out in everyday lives such as philanthropists funding the distribution of vaccines. People recognise giving to support vaccine distribution as a good thing but they are also uncomfortable that it is necessary for philanthropy to step in to do this when they think the state should provide vaccines.

How does your work help philanthropists?

Rhodri:

My work helps in three main ways:

1. Practical
Those getting on and doing philanthropy are busy and rarely have a chance to stop and think about what they do, where it comes from and how it touches on fundamental questions about the nature of humanity and what we want society to look like. On a practical basis, I can do some of the leg work and then share what is interesting.

2. Reassuring
It can feel a bit lonely as a donor or someone running a foundation. It is reassuring to know that not only are lots of people in the world right now going through the same things but also that historical figures have also grappled with the same challenges. I hope philanthropists take strength from knowing they are not alone.

3. Enriching
There is so much knowledge out there to draw on and most trends in philanthropy have a historical precedent. My hope is that my work enriches people’s understanding of philanthropy – it’s history, where it sits in current debates and where it might go in the future.

What do you find challenging?

Rhodri: When you recognise that philanthropy moves in cycles you realise that nothing is clear cut. I do have my own views on how philanthropy at its best should look and work, but I also don’t think my view is the final word because there are perfectly valid alternatives. It can be tricky to stay in the middle and try to be balanced and nuanced. And there are some issues such as climate change or racial justice where the challenges are even greater, because in attempting to be even-handed you risk giving legitimacy to points of view that many would see as actively distasteful. Wherever possible though, I want to hold that middle space which allows people who might not agree with each other to think through and discuss issues and work together, because ultimately, they share the same ambition of wanting philanthropy to do good in the world.

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

The Philanthropy Ecosystem: What is a philanthropy advisor and what do they do?

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We are delighted to introduce the first article of our brand new Philanthropy Ecosystem Series, designed to break the ‘isolation tank’ syndrome that philanthropists can sometimes find themselves in. The good news is they are not alone and an evolving ecosystem of support exists to help them.

In this series, we will introduce and interview some of the incredible individuals and organisations that are here to help and support all potential and existing philanthropists. We are grateful to Emma Beeston, herself a Philanthropy Advisor, for conducting these real-world interviews on behalf of Beacon.

In this first article, we will be discussing what a philanthropy advisor is and what they do in the company of Lizzy Steinhart, a Philanthropy Advisor for the multi-family office LCM Family Limited. For any philanthropists trying to work out how best to make a difference in the world, the great news is that advisors like Lizzy will help them reach their goals.

What Is a Philanthropy Advisor And What Do They Do?

The role of a Philanthropy Advisor

A Philanthropy Advisor is a philanthropist’s essential guide through the myriad of choices you will make as you move from being a generally charitable individual to becoming an intentional giver. They act as a critical friend who is there to help you when it comes to deciding your philanthropic goals as well as bringing their sector expertise to inform (and sometimes challenge) your giving choices. Philanthropy Advisors can be found in a range of settings: banks, family offices, and wealth management firms as well as being independent consultants and advisory practitioners.

Many Philanthropy Advisors will be generalists who are able to help you with any aspect of what you want to achieve from your giving. Some Philanthropy Advisors specialise in a particular cause area such as the environment or a particular philanthropic approach such as strategic philanthropy, or particular aspects such as those involving the family and issues that can arise there.

A Philanthropy Advisor is not yet a well-known professional role. To demonstrate what they do we interviewed Lizzy Steinhart, a Philanthropy Advisor for the multi-family office LCM Family Limited. Lizzy has a background in the charity and grant-making sectors and joined the firm to set up their philanthropy service. Her purpose is to support individuals and families in turning their generosity into thoughtful and planned giving. Her typical day demonstrates the variety of areas that philanthropy advisors can help with such as liaising with tax advisors for a client wanting to set up a donor-advised fund conducting due diligence assessments and even accompanying a client on their project visits.

Some of Lizzys’ clients may come up with a firm idea that she will then help to make sure they have considered a broader marketplace than the charities they may already be aware of. Other clients of hers may come to her with a blank sheet of paper which means that Lizzy can work with them for several months or even over years to help them decide where they want their money to go and what the most effective and efficient timing of donations for both the client and the charities involved would be.

What Is a Philanthropy Advisor And What Do They Do?

Elizabeth Steinhart
Philanthropy Advisor
www.lcmfamily.co.uk

What benefits does a Philanthropy Advisor bring?

Lizzy:

It is hard for a philanthropist to pick up the phone and say “I may or may not be interested in giving you some money”. Philanthropy advisors are really useful intermediaries that can facilitate connections and conversations to benefit both parties as they are able to make these conversations deeper, clearer and more strategic.

Advisors also enable broader conversations about the purpose of wealth across families. This can help the wealth creator to express their values at the same time as listening, inspiring and guiding the future inheritors in financial literacy and charitable giving. This can prevent the issues that arise when family members only find out at death that someone has given lots of money away to charity. More importantly, it enables children and grandchildren to be incredibly proud of what their family has achieved.

Ideally, you are helping your client to become confident and self-sufficient to ask charities the right questions about causes and projects that they may want to invest in. As well as making introductions and guiding what good due diligence of a charity should look like, I can steer them in how to research a specialist cause or ‘ marketplace’ of charities working within a specific field and also support them in conducting meetings with charities.

They can then go off and follow that particular charity relationship themselves, often that will last many years. The majority of my clients are very intelligent people with fabulous careers. They are coming to this with huge intellect, curiosity and compassion. It’s about facilitating their onward journey without me.

What Is a Philanthropy Advisor And What Do They Do?

What should philanthropists look for in an advisor?

Lizzy:

This brings us back to our question of what is a philanthropy advisor. Look at their career path, their professional networks and their previous experience and knowledge of the charitable sector. There are plenty of good people out there so talk to others and get personal recommendations.

What challenges do you face in this role?

Lizzy:

Philanthropy is so meaningful and enjoyable that I find it frustrating that it is not part of all conversations about wealth across private clients‘ ‘financial services’. Clients don’t often know the added value they, their families and charities will gain from investing in some professional philanthropy advice. Too many wealthy individuals still make significant ad hoc, spontaneous donations to causes that they care about, rather than using their day-to-day business acumen to research, take advice and ‘invest’ in that cause to maximise their own knowledge, the terms, value and impact of the gift.

What do you like most about your role?

Lizzy:

I love the breadth of the individuals I get to work with – from the wealthy clients wanting to make a socially conscious impact with their money, to meeting with incredibly dedicated charity staff, volunteers, and of course, the end beneficiaries of funding – many of whom have humbling and inspirational stories to tell. It is so rewarding to take a client on their giving journey and see this often open up a new enriching chapter for them and their families.

Emma Beeston

Emma Beeston

Independent Philanthropy Advisor

Emma Beeston is an independent Philanthropy Advisor supporting individuals and families with their giving.

Her book on Advising Philanthropists (Co-authored with Beth Breeze) is out now.

www.emmabeeston.co.uk

Where are the women in philanthropy?

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Lucy Hart writes for Beacon Collaborative about the current level of philanthropic funding for women and women-facing initiatives and asks what we can do to increase it.

“Control F”

In May, the 2022 Sunday Times Giving List was published. As a nonprofit consultant, this is a pretty handy one-stop guide for an overview of who is giving and where in the UK. A quick “control F” of “gender” and “women” throws back one result for “gender equality” (thank you, Sir Chris Hohn) and for “women”, three.

Out of 120. Really? Really?

Of course, there’s a caveat: women’s issues and gender both come under many other philanthropic giving areas, like education, health and so forth. Understand me: I hasten to suggest only four donors give to these two causes. But alarm bells indubitably ring.

I am currently re-reading Can We All Be Feminists?  by June Eric-Udorie. In it she writes: 

“to those women with privilege, this is what we need from you: Organise with us, but let us be the authority on our own experiences and in our activism. Don’t speak for us – we can speak for ourselves”. 

Firstly, I highly recommend this book as a starting point to verse yourself with the challenges facing, and debates within, feminism today. And secondly, acknowledge my position of privilege.

For those unfamiliar with the term intersectionality, it’s Kimberle Crenshaw’s “attempt to make feminism, anti-racist activism, and anti-discrimination law do what I thought they should – highlight the multiple avenues through which racial and gender oppression were experienced so that the problems would be easier to discuss and understand”.

In other words, Western feminism as many of us have known it, has too long been centred on the white, middle-class experience and it’s a truth we must live by and correct. 

With this in mind: I am overwhelmed by the cacophony of voices speaking on “women’s issues”, and yet: where are the funds?

Back in August 2021 I gave my two cents on my hopes for the future of philanthropy in Alliance Magazine’s 25th anniversary edition. In it I referred to the 2020 The Women and Girls Index figure showing that just 1.6 per cent of philanthropic giving in the US goes to women and girls’ organisations.

So, what are we going to do about it?

And here lies feminist philanthropy. A philanthropic form that “encourages individuals and corporations to think more deeply not about who they donate to, but why they’re donating”. By adopting a feminist lens, philanthropy might look towards the margins and, for that matter, be far more transformative.

I deeply admire the work of Global Fund for Women. They’re a feminist fund with an intersectional lens. Back in 1987, four bold women: Anne Firth Murray, Frances Kissling, Laura Lederer and Nita Barrow were frustrated by a lack of interest in funding women’s human rights, so they founded an organisation to fund grass-roots women-led movements directly. 

As a feminist funder, they actively shift the power to historically marginalized communities including women, girls, and gender non-conforming people. Flexible funding and resources move directly into the hands of feminist activists who know exactly how to use it. 

As a non-profit consultant who works to build the capability, capacity and coherence of socially-focused organisations, it would be remiss not to say that we can help. The funders are out there, but finding the right ones? That’s the challenge. Often, funds are poured into issues “in vogue”, but let us not forget: women do comprise half the human race.

Our clients fight every day against poverty, racism, violence, environmental injustice, lack of education, misinformation and the dismantling of quality journalism, and encroachments on democracy. I would love to see more organisations tackling gender and women’s issues walk through our door. So, I say, come on in and let’s talk.

Afterword: Is change coming?

In November 2020, the Bill & Melinda Gates Foundation, the largest philanthropic organization in the world, appointed their first-ever President of Gender Equality, Anita Zaidi. She leads the Foundation’s efforts to achieve gender equality by integrating gender across the Foundation’s global work. If such an influential funder has taken this step, is change coming?

lucy hart

Lucy Hart

Coordinator of Research and Capacity-Building

Lucy Hart is the Coordinator of Research and Capacity-Building at The Athena Advisors, a nonprofit consulting firm driven by a belief in social justice. She holds an MSc in Women, Peace and Security from the London School of Economics. For a no-obligation conversation on the challenges your nonprofit is facing, you can reach Lucy at lucy.hart@theathenaadvisors.com.

Philanthropy Right Now: Stimulating Intergenerational Dialogue

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intergenerational giving header

‘Philanthropy Right Now’ is a monthly opinion column for Beacon Collaborative. It features commentary and thought-pieces from experts working in UK philanthropy. In this month’s column, Marie-Louise Gourlay – Managing Director of Europe at The Philanthropy Workshop – implores us to increase dialogue between older and younger philanthropists in order to achieve real change.

It feels, at least from where I sit, that everything comes back to community.

Those groups that hold you, support you, advocate for you. Yet, a community needs room to pulse, to evolve, to tackle conflict. It needs the opportunity to develop new and better ways forward.

A community naturally comprises multiple identities; it’s those differences, combined with common values, that create discussion and the potential for shared progression.

“You need to know the rules to break them.”

We use frameworks and roadmaps within the philanthropy community to provide a path forward. And, as important as they are, those very same frameworks need to be picked apart. They should act as a springboard for people to build on, as well as to deviate from.

After all, you need to know the rules to break them.

As with any status quo, challenges within philanthropy come in many forms. One of those is the generational line: deep chasms are felt between generations on the issues philanthropy should prioritise, and the approaches & tools that can be deployed.

We’re starting to see new, younger generations of wealth stewards focusing on social change as the ultimate goal. These generations also report being the champions of impact investing within their families, coupled with a drive towards aligning their values and principles across their entire portfolio, from traditional grant-making to for-profit investing.

“We’re starting to see new, younger generations of wealth stewards focusing on social change as the ultimate goal.”

The intergenerational wealth transfer which is already underway (estimated at $3trillion), is now throwing a light on the lack of authentic discussion between younger and older philanthropists.

In our society, there are limited spaces where genuine intergenerational discussion can take place without age playing a role in who is listened to and who is ignored.

Families are often subject to generational power dynamics, with greater respect given to the wisdom (real or perceived) of family members whose lives span more decades than our own. In professional environments, we also experience these hierarchies. Unspoken rules that dictate whose ideas may be taken forward, irrespective of credibility or relevance.

In speaking with funders across a spectrum of ages, I see this issue daily. Some feel that younger family members lack the maturity to see the full picture, that they don’t have necessary experience to make decisions.

And whilst cultures differ from East to West, there is a general acceptance that length of time on our planet can be an indicator of wisdom, prompting the older generation to have the final say.

But younger generations provide invaluable guidance to these discussions. From digital skills to professional nous, younger philanthropists have the abilities and desires that are essential to solve many of our current social issues. Their voice needs to be welcomed into the philanthropy community.

But this social change will not happen overnight. Can we really afford to wait for intergenerational dialogue to reach a level where it’s on an equal footing? Where the voices and perspectives of the next generation can sit alongside those of earlier generations, to reach agreement about how to deploy resources for greatest impact?

“Creating intergenerational parity will be a bumpy (and at times difficult) road, but a road with a shared destination.”

We need to ask ourselves whether we can instead focus on what each generation (and each individual) brings to the table – lived experience, practice and knowledge, coupled with new ideas, bold thinking and a shared desire to do good with our resources.

To make this work, we need to approach conversations in a forgiving way. In a way which understands that creating intergenerational parity will be a bumpy (and at times difficult) road, but a road with a shared destination.

The sector should consider moving away from intellectualising discussions and towards open, vulnerable, humble discussions where the voices of different generations can sit side by side, focusing on pooling our perspectives, not dividing our opinions.

We need bold approaches, and fast. These won’t come from continuing to do things in the same way.

marylou gourlay

Marie-Louise Gourlay

Marie-Louise Gourlay is the Managing Director of Europe for The Philanthropy Workshop. Find out more about The Philanthropy Workshop’s activity here.

How To Be The Philanthropist That Makes A Difference

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philanthropist

Save this for later. 

The next time you’re approached by a charity, come back to this article.

That’s if you want to avoid the funders’ remorse, and feel confident that every penny you give is spent well.

Kafui and Steph will be our guides. Why them? Because they sit between the people you want to help and funders like you. Kafui is CEO of FAST London and Steph is Co-founder of Doceo.

Their charities have both benefited from strong relationships with effective philanthropists. By 2024, these relationships will help to change over 10,000 lives.

Based on these conversations, here are 4 ways that you, as a philanthropist, can build a trusting relationship with charity.

What is an effective philanthropist, and why does it matter?

Philanthropy is the desire to promote the welfare of others, especially by donating money to good causes. An effective philanthropist is a person who makes it happen.

Donating to charities is a great way for you to address problems you care about. Like outsourcing the problem solving to other passionate people. 

If every UK multimillionaire gave 1% of their annual income, we would have £46.4m more for charities. But we have to make sure that £46.4m is well spent. 

Next time you consider a charity, apply these 4 things to ensure success.

How To Be An effective philanthropist…

1. Prioritise trust

Prioritise building trust.

25% of HNWI say a lack of faith in how charities are run is a barrier to giving. Some of this is down to misconceptions, but some is because of legitimate issues in the sector. How do you decide who to fund?

Look for expertise, transparency and results. 

At FAST London, Kafui is teaching young people trust, resilience and hope for the future. They live next door to the young people they help.

Funders visit the clubs, meet the young people and hear what the community says about their work. You want this level of access to a charity. But there’s more to it.

Doceo gives disadvantaged young people essential life skills to enter the workforce. They select programmes based on the young people’s personal experiences and conversations with recruiters. You want to understand their theory of change.

How do you build trust? Ask the right questions.

Ask to see impact data, annual reports, case studies, a theory of change, beneficiaries and more. If you’re interested, they should be able to share this with you.

If you can’t trust them, don’t fund them.

But let’s say you can trust them. What’s next?

2. Set effective expectations

Expectations help you achieve goals. But unrealistic expectations are premeditated resentments. Managing expectations is key.

Have guideline expectations in 3 key areas:

  1. Interaction with you
  2. Running the charity
  3. Solving the problem

Kafui highlights that “in a small charity 3 or 4 of key functions are done by one person.” If you’re expecting a weekly catch up call with a small charity, that would take a lot of time away from delivery.

And if you’re expecting to determine exactly how the charity spends your money, remember, they should be the experts. If you’ve built trust with them, you can trust their approach.

How can you set expectations? Have a kick-off call. Talk about plans for communication and spending. Listen but also challenge them. Take notes so you can refer back to them for accountability. Charities often have to adapt, but some can lose sight of their end goal. Clear expectations will keep your philanthropy on track.

3. Communicate regularly (enough)

Effective communication is crucial. Any relationship, personal or professional, requires input from both sides. Here’s why.

Your chosen charity wants to plan. You’re a part of their plans. They want you to see their work. You want to know your money is making an impact. You might have other skills that can help.

You won’t know any of these things if you only skim read a newsletter every 4 months. Your charity must engage with you, but you need to engage as well.

At Doceo, Steph says “At the bare minimum [expect] regular updates….All of our donors sign up for our mailing list.”.

If you invested in a business, you would keep up to date to safeguard your investment. Philanthropy works the same way.

Read the updates, reports, attend events, see any press, and ask important questions. You could volunteer. Every week? Not necessary. Once a quarter? That could work.

But what happens when you’ve done all the above, and it’s still not working. If you’re considering ending charity support…

4. Know your why

Remember why you care. In the words of Jeff Bezos, be “stubborn on vision and flexible on details”.

Knowing your “why” will keep you focused on the end goal, keep you inspired and guide you to make the most impact. 

Steph has a great suggestion. “Know the impact that the funding is having and the impact that the lack of funding would therefore have.” A simple exercise like this can put into perspective the impact (or lack thereof) of your support.

Take a pen? Pause for 2 minutes and write down what you care about. Why did you start in the first place? Why this issue? It will reassure you to keep going on or highlight that it’s best to try a different charity. Whatever you do, don’t give up. 

The people you set out to help still need you. You just need to find the best way to support them.

Society needs effective philanthropists. You can be one. 

These 4 pillars will help you to maximise the impact of your cheque, and work exceptionally well with the charities you invest in.

Start now.

Follow me, Steph and Kafui on LinkedIn

Emmanuel Ayoola

Director and Principle Consultant at Mission Growth

Philanthropy Right Now: Agreeing to disagree

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rhodri davies philanthropy right now header

Can we agree to disagree when it comes to philanthropy?

‘Philanthropy Right Now’ is a monthly opinion column for Beacon Collaborative. It features commentary and though-pieces from experts working in UK philanthropy. In this month’s column, Rhodri Davies (Philanthropy Expert in Residence at Pears Foundation) highlights the necessity of introducing nuance into today’s binary philanthropy debates.

Philanthropy, as I never tire of telling anyone who will listen, is a curious and complex thing. At a micro level it is all about the choices of individuals, which are deeply personal and reflect ingrained cultural and ethical values (not to mention a whole host of conscious and unconscious biases).

But at a macro level it is also a key mechanism for the redistribution of resources- alongside the state and the market – so it raises fundamental questions about liberty, justice and what we want our society to look like. 

As a result, there is always the risk of conflict when discussing philanthropy, as it can bring to light deep-seated differences in opinion and ideology. Navigating these challenges requires that we embrace nuance and are willing to at least try to see issues from other points of view.

“There is always the risk of conflict when discussing philanthropy.”

Sometimes we even need to hold multiple conflicting, and quite possibly contradictory, thoughts in our head at one time. This should not be impossible, but in an age of increasing polarisation and polemic it feels increasingly difficult. 

The culture war narratives that have taken hold in the media imagination are part of the problem. They push us to view complex issues in overly-simplistic terms and demand that we “choose sides” based on stark dividing lines, when in reality there are often large swathes of grey area.

These narratives also encourage us to “other” those who disagree with us; seeing them not as people with legitimate different points of view, but as “enemies” with whom we should not even engage. 

Social media is almost certainly another factor here. The economics of the online “attention economy” have created further incentives to simplify complex issues and present them in ways that stoke argument and division to keep us clicking.

“The tendency of social media to create filter bubbles[…] leads us to hold views more dogmatically.”

Likewise, the tendency of social media to create filter bubbles in which our own views are echoed and amplified can leads us to hold those views more dogmatically and to see anyone who disagrees with us as “the enemy”. And these problems may well get worse.

The news that Elon Musk is to buy Twitter, for instance, was greeted with dismay by many who fear that his self-proclaimed love of free speech and his own abrasive public persona herald a new era of further coarsening of the online sphere.

The challenge for philanthropy is that this all comes at a time when it is already having to adapt and evolve in the face of major social, political and technological changes; as well as growing scrutiny and critique of the influence of wealth in our society.

For those of us keen to help that evolution happen, it is more vital than ever that parties with a wide range of views about the legitimacy and role of philanthropy are able to engage productively and in good faith.

The danger otherwise is that rather than the nuanced (but probably not always easy) conversations we need to be having in order to move things forward, we instead get only empty debates that collapse into “philanthropy is good” or “philanthropy is bad”.

And that benefits no-one.

rhodri davies

Rhodri Davies

Philanthropy Expert in Residence at Pears Foundation

Rhodri Davies is a widely-respected expert and commentator on philanthropy and civil society issues. He is the author of Public Good by Private Means: How philanthropy shapes Britain, which traces the history of philanthropy in Britain and what it tells us about the modern context.

 

Following his role as Head of Policy at Charities Aid Foundation, Rhodri is now Philanthropy Expert in Residence at Pears Foundation. He is also working as a Pears Fellow in the Centre for Philanthropy at the University of Kent.