We need to change the narrative around Philanthropy and Philanthropists
Founder of Prism the Gift Fund, Anna Josse discusses the paradoxes present in the philanthropy sector today, and how they could be addressed.
Given government cuts and the cost of living crises, various bodies such as the Charity Commission and DCMS (Department of Culture Media and Sport) are trying to work out the role of major donors and how to engage with them to encourage them to give and give more.
Prism the Gift Fund (Prism) is a UK registered charity which administers the giving of individuals, groups and foundations making significant gifts to charities globally. In 2020 it conducted a survey through NatCen on philanthropy. As a consequence, Prism released a Think Piece.
“This Think Piece describes and illustrates a paradox that has implications for all who care about building a stronger charitable sector: that the British public feels far more positively about the fruits of philanthropy than it does about those who fund it,” said Dr Beth Breeze, the writer of the piece. In addition, the report reinforced two known paradoxes – that donors tend to benefit alongside those they intend to help, and that wealth accumulation tends to precede distribution.
It is concerning that there seems to be a disconnect between the impact of philanthropy and the donors making the gifts. As was shown by our report, there is a broad disdain amongst the wider public and the media towards HNW Philanthropists. There is a danger this could lead to HNW individuals deciding to curb giving to protect themselves. Why would they want to be targeted by media or others? In turn, charities are denied those larger private income streams. More needs to be done to change this narrative.
There is a call in the sector to train financially regulated individuals around philanthropy so that all FCA regulated investment advisors have to complete a module on philanthropy. Creating the infrastructure for change is essential. And the wealth management sector has an important role to play.
For twenty years plus there have been discussions with successive governments about charitable tax breaks. It seems philanthropy is always at the bottom of the in-tray and so the idea of any changes are too complex and before anyone gets to thinking about it, there is a new government in place. Additionally, there seems to be on average between £500m-£750m unclaimed in Gift Aid every year. These are funds that charities addressing some of the most pressing needs in our society today are missing out on.
It was encouraging to see that Stuart Andrew MP was appointed as a minister for civil society and is engaging with the charitable sector. However, the government’s latest advertising for a new position – “Lead Advisor, Philanthropy – office for Investment” is missing the mark. The ad goes on to describe how “You will work with the most exciting and high-profile foundations and philanthropists across the world…Focusing on attracting this philanthropic capital investment into the UK”.
The use of language around philanthropy in this context is very unclear. Philanthropy is charity and yet this does not appear to be charitable. This is investment into government projects – where are the charities, where is the philanthropy? Who has invented the phrase “philanthropic capital investment”? I have never heard it before and I think this is confusing and lacks clarity as to its real meaning. Not to mention the fact that working with high profile foundations and HNWIs takes time and patience – usually years to build a network. They don’t just appear even with Number 10’s involvement.
For over twenty years I have been part of groups – Philanthropy Advisors Forum originally chaired by Lord Robin Javrin and then Philanthropy Impact -trying to educate and positively influence the government, the media about both the developments and challenges in the charitable sector. For a long time, we have discussed the idea of a Minister of Philanthropy – someone permanent we can talk to. I applaud the government for creating a new office for investment but I’m not sure quite how this office will benefit the charities in the UK that are struggling given government cuts. As I have been saying for many years, it is the major donors that are the people that could fill this gap. They need to be encouraged to give more and those that haven’t started their philanthropic journey to be encouraged to begin. They will always gain more than they give.
In addition, let’s educate primary school aged children to feel the responsibility to give. Everyone should feel that responsibility through time and/or money.
Charity Excellence Insight Briefing has shown that sector resilience has been falling since late 2021. The Cost of Living crisis has been both longer and deeper than Covid and the public sector funding cut risk they originally highlighted has now materialised. Cuts to public funding for charities are estimated at £1bn pa, there is a high risk of widespread charity closures and it might be 2025 before we recover to pre-crisis resilience levels, if then.
Philanthropists and their advisors can help plug that gap and can assist in looking at innovative ways of addressing entrenched societal challenges together with communities and government. Let’s learn from the positive aspects of philanthropy; garner more encouragement of philanthropy through knowledge around the tax incentives and where appropriate follow some of the great philanthropists in Europe and USA and celebrate their generosity.
