Skip the primary navigation if you do not want to read it as the next section.
Skip the main content if you do not want to read it as the next section.
Alec Reed CBE with the Royal Ballet's First Artist Gemma Bond dressed in her costume for the Balanchine Ballet, Jewels. © Philanthropy UK/Lisa Barnard
In this regular column we invite influential individuals to contribute their ‘top five tips’ for giving. This issue Philanthropy UK is delighted to welcome Alec Reed, founder of Reed Recruitment Group and a number of international charities, who has just launched his most recent philanthropic project – www.thebiggive.org.uk.
I have been working as a volunteer with charities for the last forty years. In the early 1970s I worked with drug addicts in the West End of London. When the addicts realised that I was an employment agent many of them used every opportunity to ask if I could find them a job, so I founded a registered charity – AREA (Addict Rehabilitation Employment Agency). This proved to be a trend and I could not stop being an entrepreneur even in my charity work.
Twenty years ago I sold a business. Those proceeds due to me I put into a private charity, The Reed Foundation, and for the first time had to think seriously about how to give away money. Again I was much more attracted to ‘entrepreneurial giving’ and invested in my own new charitable ventures. Firstly I started Womankind Worldwide and then Ethiopiaid. Although I did make substantial donations elsewhere they were in the minority.
My latest charitable venture, just over two months old, is www.thebiggive.org.uk. This interactive website is designed to enable philanthropists to be pro-active and reduce the cost of fundraising for charities.
Donors can easily identify projects they may be interested in by searching against the donation value, cause, geography, and specific beneficiaries, such as women or children.
The site currently hosts more than 1,900 projects seeking combined donations of around £940m.
- So the first of my tips for philanthropists must be to look at www.thebiggive.org.uk. First scan the 670 charity logos displayed to mentally enforce the choice available and the size of the task ahead. Then decide on the size of donation that you would like to give. A slide ranges from £100k to £1m, and a function button shows projects of over £10m. You can then choose the type of project you would like to support. The whole spectrum is represented from wildlife to cathedrals, offered by both the country’s largest charities as well as the smallest. Finally decide which part of the world you wish to benefit and identify it on the illustrated map.
- My second tip which suits me very well is separating the spending from the giving. By which I mean deciding how much you want to spend on charity as a lump sum or annually and transfer it to a neutral fund. That could be your own foundation or maybe a fund or account at the Charities Aid Foundation. From there you can continue your research and decide which good causes you wish to support.
- As to which projects you are going to donate to, I suggest that you should largely back your own interests. You will prove a better supporter if the work has your interest as well as your money. You also personally will benefit from a greater sense of satisfaction. Remember you cannot support all the world’s needs, and concentrating on a little can mean a lot to the recipients.
- For the large donation that The Big Give is designed to attract, the donor can reasonably expect good access to the charity. Take the opportunity of visiting their offices and meeting staff at an appropriate level. People make the difference and will determine how much your donation will achieve.
- Finally, do not ignore due diligence. Ask for a copy of the charity’s statutory accounts. Do not be satisfied with extracts that sometimes appear in annual reports. If you cannot read accounts, then ask a friend who can help. The number one question is do they need your money – a few do not! The second question is, are they reasonably frugal? I have seen charity staff travelling business class when I have been a tourist – it smarts!
Alec Reed CBE founded the Reed Recruitment Group in the 1960s, and started the Reed Foundation in 1985 following the sale of a business interest. He has since founded a number of charities, including Ethiopiaid and Womankind Worldwide.
Download Newsletter
Subscribe