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Giving through a charitiable trust
Mr A, a lawyer, and Mrs A, a former City professional, each had been giving money to charity for many years when they decided to give "in a more coherent, thoughtful way". Mr A explained: "I felt that I ought to be giving more than I did" and, added Mrs A, "we shared priorities and a common goal, and so felt that our giving should also be mutual." They established a joint, flow-through charitable trust, which has suited their needs well, and which they found to be inexpensive to set up and to have modest ongoing administrative requirements.
Through the trust, which is funded through a combination of regular payroll giving and one-off Gift Aid contributions, Mr and Mrs A have increased the effectiveness of their giving by formalizing a decision-making process with established criteria. They aim to give roughly 10% of their combined annual income each year to charitable organisations and initiatives, primarily to arts and heritage, overseas development, poverty relief and disability charities. Additional causes supported include education, training and children, legal and local initiatives.
Mr and Mrs A focus their giving on charities and areas with which they are involved, such as legal charities and international development organisations (Mrs A has had experience in developing countries). As they are both keen patrons of the arts, Mr and Mrs A also support a variety of performing and visual arts organisations as well as several individual artists. Mr A explained: "If you give where you care, then you want to be involved, to read the reports, to ask questions and to learn."
Most of the trust's grants represent recurring giving to existing beneficiaries. Mr and Mrs A look for opportunities to make an impact with their donations, especially among less popular causes. For example, they give to Quaker Social Action, a charity tackling poverty and social exclusion in East London, which impressed them with its "intelligent and strategic advocacy work". In addition, they continue to support the Karuna Trust, a UK-based charity that helps disadvantaged individuals in India, which they have found to be "good at asking for money and good at reporting results".
A key challenge Mr and Mrs A face in supporting a large portfolio of charities (approximately 30 in a recent year) is how to make an impact with relatively small donations. They wish to be confident that their donation will be properly and effectively used. This may be a problem in some countries, particularly in Africa. They were, however, persuaded to give to Sight Savers International, a UK-based charity that combats blindness in developing countries in Africa and elsewhere, after receiving some marketing literature detailing how much could be achieved for specific levels of donations.
Mr and Mrs A's philanthropy is motivated by a sense of social obligation and a desire to give something back to society: "I have more than enough, and so should give something back." Mrs A's philanthropy is also inspired by her parents, who had little money but were "deeply committed to helping others". For example, when Mrs A was a little girl her parents took in a Hungarian refugee during the 1956 Hungarian Revolution.
Their recurring giving is motivated by empathy, as well as the excitement of being a part of "making something happen" while sharing the experience with like-minded individuals-be they other donors, the charity's staff, or individual beneficiaries. For example, a number of years ago they supported an emerging opera singer as part of a syndicate. They have enjoyed keeping in touch as she progressed in her career to become an acclaimed performer. Yet both Mr and Mrs A agree that one of the most rewarding aspects of their philanthropy is "doing it together".
(from A Guide to Giving, 2nd edition)
