Posted on 22nd September 2011
The voluntary sector needs to respond to the changing needs of philanthropists, according to the Community Foundation for Merseyside. It has published a report calling for better communication, more advice about giving effectively and the development of a '21st century model' of giving. The Foundation is part of a national network of community foundations and the largest grant-maker in Merseyside.
Chief executive and author of the Desperate Times, Desperate Measures report, Cathy Elliott, says: “It explores the role of philanthropy as the landscape changes for voluntary sector funding.”
It urges the voluntary sector to communicate more effectively to attract potential donors. The report says: “We need to communicate the change we create for the better in a new language to a private sector audience, demonstrating our track record, identifying needs and proposing solutions to old problems.”
The report points to the fact that charitable donations from the top 100 philanthropists in the UK fell by almost a third to £1.67bn in 2009/10. Yet according to the Sunday Times Rich List 2011, the 1,000 multimillionaires have reportedly increased their wealth by £60.2bn. On a positive note, the report highlights the fact that the number of donors giving more than £1m has grown from 118 to 129 with those philanthropists in the top 30 increasing their giving from 3.22% to 3.42%.
Speaking at the launch of the report, Sir Terry Leahy, former chief executive of Tesco, says: “I think one of the reasons why – if it’s true – you haven’t seen a proportionate increase in philanthropic giving is we haven’t developed the easy vehicles for people to use to invest back into the communities they choose, or into the causes they choose … and I think the Community Foundation is a very welcome response that just makes it easier for people to feel they can give and make a useful contribution.”
Elliott believes philanthropists are in a good position to help in ‘desperate’ times. She says, “freed from the need to be accountable to the electorate or to pacify the media, philanthropists can take greater risks and pursue the causes and concerns that motivate them”.
However, she says philanthropists need more professional services and advice, “to overcome some of the challenges in giving money away effectively to ensure their giving is both easier and more enjoyable”. In turn, philanthropists want to offer “more than money, such as time, influence and in-kind support”.
The report predicts that “in the future, we will see the emergence of more commercial ventures which have a philanthropic aim at their core”. It also heralds “a new age of philanthropy with a new breed of wealthy philanthropists emerging who are more socially aware and more motivated to give back to the communities they came from, as well as global causes”.
Elliot concludes by calling for a 21stcentury model of giving. She says the UK is becoming increasingly aware of the presence and value of philanthropy and new models of giving. “We need to work together across sectors to understand the new landscape, and create, test and develop a new 21stCentury model together.”
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