British philanthropy is in the midst of a sea change: more wealthy people are giving, and in more sophisticated ways. Donors of all wealth levels are concerned about how effectively and efficiently their money will be spent. They also are increasingly seeking professional advice to help them to give effectively, so that their contributions can have a real impact.
Demand for support is highest at the earliest stages of a philanthropic journey, and many people simply ‘don’t know where to start’. A Guide to Giving provides inspirational, practical and objective guidance to help you get started in philanthropy, so that you can make a meaningful, positive difference to the causes you care about.
What is effective giving?
Effective giving involves making informed choices, being confident that your gift will make a difference, and being assured that your donation is an efficient use of your money and time.
While this framework and its key principles aim to help inform your giving decisions with objective analysis – that is, how you give – they are not intended to diminish the importance of your empathy and commitment – for instance, what motivates you to give in the first place. Indeed, good philanthropy successfully blends objectivity with compassion.
Following just a few key principles will help you to give effectively.
Key principles
- Give responsibly. Be knowledgeable about the causes and organisations you are supporting. Even if you do not have time to engage directly with the recipients of your gifts, read the evaluation reports and modify your giving programme as appropriate.
- Understand the impact of your giving. Be confident that you are achieving your objectives. What impact do you seek? What impact do you have on the organisation and on its beneficiaries?
- Seek advice. There are a variety of good and experienced sources who can advise you on your giving programme and on individual investments. These include professional advisory services as well as informal sources of support, such as family, friends and colleagues.
A framework for effective giving
Guided by these key principles, Philanthropy UK’s ‘Framework for effective giving’ guides you through a step-by-step process to create a charitable giving strategy that reflects your own motivations, interests, circumstances and objectives. This strategy in turn guides your selection of specific charities (or other recipients) for your philanthropic portfolio.
We wish to emphasise that there is no ‘right’ strategy or ‘right’ portfolio – it is a question of what matters to you, who you would like to involve, and how you would like to organise the decision-making process. This framework aims, as a guide and a stimulus, to support you as you choose your own path to effective giving.
How to use this Guide
Beginning with our Framework for effective giving, this handbook provides you with a step-by-step process for creating a charitable giving strategy that will reflect your own unique interests, circumstances and objectives. Each stage of the Framework guides you through a variety of approaches to giving. Options include venture philanthropy, social investment and community development finance – all clearly explained by experts.
We’ve added a number of new topics for this third edition of the Guide, including:
- Charity impact evaluation
- Community development finance
- Donor advised funds
- International giving
- Social investment
- Sustainable finance
- Plus a new section on family business and philanthropy
We’ve also included profiles of both new and experienced philanthropists. Their stories bring to life the information and guidance through their inspiring, real-life examples.
Finally, there is a comprehensive guide to the wide range of charitable services and products for UK donors.
Philanthropy UK is delighted to produce this Guide with the continued support of private bank Coutts & Co. Coupled with specialised tax and legal advice from your professional advisor, it is an essential resource for aspiring philanthropists.
Whatever your interests and ambitions, we hope that this Guide helps and inspires you as you develop your own approach to philanthropy. We wish you an extraordinary journey!
Susan Mackenzie
Director
Philanthropy UK
