If philanthropists just fund projects, the risk is that they are weakening the very organisation they want to support. To avoid joining in with this dance, philanthropists can give unrestricted donations for a charity to use on whatever costs they wish. But the desire for a tangible result runs deep, so if you still want to know exactly how your money will be spent, I have a suggestion for you...
It is wonderful that technology allows us to be so easily connected to all the new research and ideas out there, but frustrating that it is so hard to find time to actually digest all this information. Lately I have been working out how best to build reading time in to my week. Assuming this is true for others, I thought I would share my efforts so far
The speech towards the end of the film ‘I Daniel Blake’ included the statement: “I am not a client, a customer, nor a service user”. It is a powerful reminder of the importance of words when used as labels. Anyone who has felt processed when trying to access their rights or a service can relate to how Daniel Blake feels. But exactly what to call ‘the people that a charity is set up to support’ is a problem.
If the external driver for impact measurement dominates, then we could end up with considerable waste as charities spend time gathering data that they don’t use, or implement systems in a token way. As funders, we need to convey the message that, whilst being able to understand the difference a charity makes is important to us, it is even more important that the charity adopts impact measurement systems that are appropriate for their clients and the nature of their work; proportionate to their size and resources; and that helps inform and improve their service delivery.
I noticed at a recent meeting that the term “being business-like” was used as a shorthand for a well-managed charity. Now I do agree that charities and other non-profits can learn from the best of business practice and the increased attention on getting the financial and business model right to try and secure sustainability for vital services is a good thing. However, not all businesses are well run and not all practices are appropriate to the charitable sector.
There are plenty of opportunities to give to good causes and there is also great scope in the UK for philanthropists to give more. NPC’s recent report into ways to increase and improve philanthropy (see link) reminded me that donors are not always motivated to give by the impact they can make but often are encouraged to give by their peers.
My summer reading included Rhodri Davies’ fascinating new book ‘Public Good by Private Means: How Philanthropy Shapes Britain’. In it I was delighted to learn that Charles Dickens was a philanthropy advisor. In the late 19th century he advised Angela Burdett-Coutts on her giving and helped screen and select applications.
One of the consequences of cuts in statutory funding has been increased competition for grants from trusts and foundations. This means that funders can chose to only fund the best: the charities that can already demonstrate a successful track record, prove their impact, are financially sound with robust management in place. Funding the highest quality is a good thing but it can also mean adopting a safe strategy. How do funders still take risks when they are spoiled for choice?
At Quartet Community Foundation’s recent annual philanthropy debate, the question posed was: This house believes it is more difficult to give money away intelligently than to earn it in the first place. As someone who earns my living advising donors which charities to invest in, I had a foot in both camps. It is hard to make a living as a philanthropy advisor in the UK. But the very reason I do get paid to do my job is it is not easy to give to charity, if you want to do it well.
I am often involved in introducing business people to their local charities or the charity sector as a whole. I am always amazed by the persistent myths that people hold about charities: that they are amateur, inefficient, homespun or well-meaning and worthy. A term that is often used – especially when the arts are involved - is ‘fluffy’. Calling charities ‘fluffy’ does them a gross disservice.
For those making donations, giving to a local charity makes a lot of sense. You are likely to understand the issues and see the results of their work. You can visit the charity and so can better trust that your donation makes a difference. Your donation is also more likely to have a bigger impact as local charities tend to be smaller - £500 is a huge windfall for a charity running on £50k per year.
