Centre-right think tank Policy Exchange, rated as 'Think Tank of the Year' by Prospect magazine, has launched a project to investigate ways to increase philanthropic giving and social investment in order to further develop a philanthropic capital market in the UK. The research will have a particular focus on the UK financial services industry.
The project will analyse the existing philanthropic market and structure in the UK, compare it to models in other countries and assess market drivers through analysis, interviews and targeted polling. Outputs of the research will include proposed policy reforms, including fiscal incentives, governance standards, innovative financial structures and other measures, to encourage the development of a philanthropic market infrastructure and increased giving particularly from the finance industry's new group of wealthy financiers and entrepreneurs.
Louisa Mitchell, Policy Exchange research director, explained: "We recognise that experts have done much research in this area and hope we can build on that work by bringing it into our public policy research programme as a focus topic, with the aim of making policy recommendations to increase philanthropy and social investment in the UK".
Policy Exchange launched its new research project with a packed and lively seminar on the 3rd May. The panel - comprising a philanthropy consultant, a philanthropist and a politician - were asked to discuss how the City of London, with its growing number of wealthy employees, can play a bigger part in creating a vibrant philanthropic sector in the UK.
The first speaker, Theresa Lloyd, argued that a link between the City and giving has deep, historic roots, from the establishment of Bart's Hospital in the twelfth century to new approaches to philanthropy embodied by 'venture capitalists'. However, Lloyd spoke of many people earning 7-figure salaries who say they "don't feel wealthy" and "can't afford to give". Lloyd concluded that active encouragement, a positive media and more role models are a better solution than either compulsion or naming-and-shaming. The City would produce more philanthropists once high-earners realised "it's not a hair-shirt thing to do but part of being a complete person".
Sir Peter Lampl, Chairman of the Sutton Trust, provided a philanthropist's perspective. He argued that donors want to see results and expect to see philanthropically funded projects run on similar lines to successful businesses.
Finally, Conservative MP Boris Johnson claimed there's a need for "psychological reconditioning" of the British people to see philanthropy as virtuous rather than vulgar. He felt the wealthy would respond to praise, including more transparent use of the honours system to reward philanthropy.
The report will be published in late 2007. To contribute to the research, contact Louisa Mitchell on louisa.mitchell@policyexchange.org.uk or Rob John, lead researcher for the project, on rob.john@oba.co.uk - www.policyexchange.org.uk
