The Duke of Richmond

Community Philanthropy, old and new

The strong impression conveyed through the continuing media coverage of ‘new philanthropy’ is that it is all about newly wealthy business entrepreneurs and financiers supporting charities through engagement, taking risks and leveraging their funding in ways that haven’t been tried before. It is perhaps an unsurprising message from an industry that is primarily concerned with ‘news’, but it may be surprising to learn that the ‘new’ philanthropy is really not so new after all.

Many of those with inherited land or wealth, for instance, have felt a responsibility to support people in their local community. The current Duke of Richmond takes this responsibility very seriously. Moreover, he is an engaged giver; a vocal advocate of small, local charities; he leverages his funding with other support; and he seeks to effect permanent, positive social and economic change in Sussex.

In addition to supporting the five parish churches on his Goodwood estate outside Chichester, he also has chaired or supported a number of local initiatives, such as the Chichester Cathedral Development Trust and the Sussex Rural Community Council, and is personally involved with a variety of other local charities. Most notably, perhaps, is the Sussex Community Foundation, whose success is largely due to his initiative and active support, driven by a strong desire to leave a permanent legacy to the community.

At Goodwood House, the home of the Dukes of Richmond for 300 years, His Grace talked to Susan Mackenzie about the important role held by those with wealth – be they companies or individuals – in supporting the local community, and about the lessons he has learned in grant-making over the last 50 years.

Philanthropy UK: Could you talk a little about your experiences in supporting the local community in Sussex?

The Duke of Richmond: In 1956 I set up my own charitable trust to give away some of my income, but became more engaged when I moved back to Sussex in 1969. The role of a Duke is sometimes to ‘adorn notepaper’, but sometimes it is more significant, and so I made it a point to learn about fundraising, so that I can help charities to help themselves. For instance, over the last five years I have got to know the charities in Bognor Regis, a town challenged with social deprivation, to better understand the issues. With no connections to the countryside – where most of the county’s wealth resides – they have difficulty finding funds, and so I have been helping them with their fundraising.

With the decline in local authority funding and a lack of corporate giving, small, local charities working at the coal face in the community cannot compete against larger charities. This inspired me to establish the Sussex Community Foundation (SCF), which has been going for 18 months now. We have a wonderful, active board, which includes the Lord Lieutenants of East and West Sussex. We raised £145,000 per year for the three-year start-up phase, and aim in the future to establish endowment funds. It is very rewarding to see this come to fruition after all the hard work of fundraising and networking with both donors and charities.

Q: How do you think community philanthropy has changed over the past few generations?

A: One notable change is a shift in wealth. For example, in 1861 the spire of Chichester Cathedral fell down through the roof, causing untold damage. The three landlords in the region – the Duke of Richmond, the Duke of Norfolk and the Earl of Leconfield – came together within three weeks and paid for the cathedral to be restored. Now, the landed aristocrat of the 19th century has been replaced by the large company. Wealth today is chiefly in the hands of large companies, and more recently, with certain individuals. One of the challenges we have in Sussex is to persuade companies that they have a responsibility to support local charities: that helping their communities helps their employees.

Q: What role can private individuals and companies play in supporting and strengthening their local communities?

A: Supporting local charities provides an opportunity to actively engage with the community, as well as giving money. It can be particularly rewarding to see the difference these charities can make on a daily basis. However, people are often wary about supporting charities that they do not know well. As a result the vast majority of charitable giving goes to a very small number of household names. So an important role for a community foundation is to provide a brokering service, connecting individual and corporate donors to local charities that it has already vetted.

Q: What key lessons have you learned from your experiences in grant-making?

A: One important lesson is to be careful not to overly burden charities with administration. They are starved for resources. So for example SCF keeps its application forms as simple as possible and ensures that its monitoring and assessment are proportionate to the size of the grant. Also, a donor can give too much as well as too little: small charities may not have the capacity to cope with a very large donation. I’ve also learned how successful engagement – and showing potential donors the impact they can have – can be in fundraising. A number of years ago I was asked by the then Archbishop of Canterbury to raise money for the Church Urban Fund. As a first step I took six very wealthy individuals to tour the more deprived areas of Liverpool. It was an eye-opener for all of us. In total I raised £150,000. But perhaps the most important lesson is how rewarding it is to see the impact of your gift on the local community.

Q: What do you see as the key challenges for British philanthropy over the next five years?

A: An important challenge is gaining a better understanding of where the real needs are. We must ensure that giving goes where it is needed, but also not to reinvent the wheel. There is a tendency amongst some new philanthropists to set up something new when others are already doing good work in the area. Class is also an issue but is not talked about; not everyone wants to be engaged with the causes they are supporting. Most of the wealthy in Sussex live in the countryside and many have never been to Bognor Regis and other coastal towns, so they don’t understand the issues – but SCF can connect them to local charities working in the towns.

Another challenge for donors is to better understand how community organisations and other charities operate. For example, donors need to understand that overheads are necessary for charities to be effective. The level depends on the charity: sometimes it is justifiable for administration to be over 10% of income, but other times it should not be more than 5%. In general, though, these small, local charities are having significant impact with very limited resources. Donors should build on the values of charities and resist imposing business values: charities have much to learn from entrepreneurs, but they also have much to offer.

Q: What are the opportunities?

A: The opportunities are unlimited. I would like to see more philanthropy groups – where people come together to address a range of issues on a local or global scale, and leverage their funding. Community foundations also have an important role to play in supporting local communities, and deserve more publicity. If we can link together those with money to give and those with the ideas, then we can make an enormous difference.

PUK: Thank you.

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