John Low, Chief Executive, CAF

An electronic engineer by training, John Low has spent most of his career in the private sector.  His work, much of it international, focused on change management: as he described it, “solving problems in hostile environments”.  In 1999 he joined RNID and became its chief executive in 2002.  Low believes that his business skills apply equally well to managing charities – as both ultimately are about people, innovation, creativity, tackling problems, and continual improvement of performance.  Of course, the stakeholders and measures of success are different, but success requires the same professional management.

In September of this year he took the helm of the Charities Aid Foundation (CAF).  Low is in his element: an organisation in the midst of change, CAF has recently completed a wide-ranging strategic review.  He met with Susan Mackenzie at CAF’s London offices to talk about UK philanthropy, the problems facing donors and charities, and how CAF is rising to the challenge. 

Philanthropy UK:  What are the biggest problems facing philanthropists today?  How will CAF tackle this challenge?

John Low:  Good philanthropy is hard work.  The first challenge is in selecting charities.  The range of causes is bewildering, and the plethora of choices can lead to inertia.  Sources of independent advice are still relatively limited.  Another challenge is in measuring impact.  There are things that cannot be quantitatively measured, and donors should not be prescriptive.   It is important for donors to be able to trust the charity.  If they cannot, then it may be best to look elsewhere. 

CAF is about helping donors, not just encouraging them.  For instance, we help donors think through their objectives as well as provide practical support.  This can include advising on how to call for grants and how to assess them.  We also help them manage their funds to achieve the best financial return.  Our goal is to support the donor to make the donation they want. 

P-UK:  Over the past five years there has been significant growth in the number of philanthropy infrastructure organisations.  What is CAF doing to support philanthropy, and how does it differ from other providers of philanthropy services?

JL:  CAF is a charity, and so there is no point for us to exist if others are doing the work better.  There is no preciousness about it.  However, I believe that we are adding value to the sector in a variety of ways.  For example, we have a lot of experience supporting companies in their philanthropy.  This includes advice on grant programmes, matched giving, or setting up a trust fund.  Moreover, it is difficult to separate companies from high-earners, who are their employees.  Companies typically give in three ‘tranches’: through the company, its employees and its trust fund – yet for CAF it is one relationship. 

CAF also has an extensive international network, which enables us to provide a universal service offering.  Many wealthy individuals generate their wealth through international activities, and so need a global solution.  Finally, through Venturesome CAF offers a social investment vehicle for individual, foundation, and corporate donors.

P-UK:  How is CAF evolving in this changing environment?

JL:  CAF is one organisation serving both donors and charities.  In 2006 over 30,000 charities received a donation via CAF. We do many things well, but we also need to modernise, to continually innovate and to improve customer service.  However, this is not just about structural change, but rather it is about systems, processes, and ways of working.  We want to be a ‘doing’ organisation.  And we will do more things in partnership to achieve our objectives.

P-UK:  You have said that CAF should actively seek to promote tax-efficient giving.  How helpful do you think that Lifetime Legacies would be in encouraging more giving? 

JL:  Lifetime Legacies would be very helpful in promoting giving.  I think that the value will become clearer in time as more people have more money, and they will want more control over their ‘lifetime money’.  For example, individuals might be reluctant to give away capital for reasons of financial security, but might do so if they can maintain the income.  This control over one’s own resources feeds the free association of people to aid society.

P-UK:  Based on your own experience as a charity chief executive, what main problems do you believe charities face in working with major donors? 

JL:  Major donor development can be excruciatingly difficult for charities.  There are simply too many donors to take a bespoke approach to all, so the starting point is hard.  Also, the cost of cultivating donors is high, and requires a massive upfront investment with no certainty of outcome.  Donors generally do not appreciate the resources required.

P-UK:  What advice would you offer new philanthropists?

JL:  I would first advise donors to ask themselves several fundamental questions: Why do you want to give?  What bothers you – what is the injustice?  What challenges you as an individual?  Then they need to work hard to find who or what can help them achieve their objectives.  These could be charities, other donors, colleagues or friends, as well as professional advisory services.  Finally, I would encourage donors to open up and share their experiences.  It is in vulnerability that good philanthropy blossoms.

P-UK:  Thank you.