Trust is still the currency of giving

Right now, there is one issue in the giving world that is discussed no matter where you are in Europe: the role of the internet and its various dot.org evolutions for the future of philanthropy. 

Everybody is excited about it and some people claim that giving to charity through online websites will transform the world of philanthropy. I agree, if this is seen as an extension of the distribution systems for donations and the easier access to information on charities – a tool-based approach. However, the web has restrictions and may even be a roadblock for experiencing more active forms of philanthropy.

The dynamic development of the internet as a giving vehicle can be observed on a European scale, as this random selection of websites and virtual tools shows: www.charityrating.org in Sweden, www.donorinfo.be in Belgium, www.spendenplattform.ch in Switzerland, www.emailcharity.com in Austria, www.2aid.org or www.helpdirect.org in Germany. The list appears to be endless. This is also true of those that have already closed down again.

Some of these are real gateways for donations in their respective national markets; others are start-ups that are trying to promote innovative fundraising techniques. Some provide information on charitable organisations; others are pathways for donations to charities. Some are open market platforms where everybody can ask for a donation; others post organisations based on a certification process. All of them struggle with the one thing that is crucial for philanthropy and, in more general terms, for all markets: trust.

As in most other consumer markets we are likely to observe the evolution of a couple of strong (European) brands that donors trust. A key question will be whether this trust needs to be underpinned by a rigid, transparent due diligence as New Philanthropy Capital in the UK is developing. Or whether it is like www.betterplace.org in Germany, based on a so-called 'web of trust'. The latter signifies that, if several donors give to an organisation, the validity of a posted project and trust placed in it increases. These are the two competing concepts for gaining credibility.

The earthquake in Haiti has underlined the impact of web-based giving tools. Some of the platforms were able to react quickly to the needs of disaster relief organisations, and others immediately presented charitable investments for a sustainable, lasting reconstruction of the country in the Caribbean. Again, the web provided the infrastructure for a quicker distribution of donations and information on charitable causes. Past natural disasters showed that, for instance, in Germany 20% of all donations are given online. The statistics will show that most of the money given through the web went to a select number of charities: the trusted brands.

But: is philanthropy really only about (better) donations? No. Philanthropy is often defined as the giving of time, talent and treasure – at Active Philanthropy we have added ‘trust’ to the list. It is about volunteering with a food bank, discussing the best strategies to improve education with teachers. It is about hearing about a glacier in Greenland melting and talking with scientists about solutions to stop this. At Active Philanthropy, we experienced again and again that these are the moments that donors recall. They want to dive into this reality and, together with others – the web can play a part in this – to develop solutions for the challenges out there. For them, philanthropy is about experiences with all senses: the heart, the hands and the head.

If our societies strive for better, sustainable, strategic giving, we must create real opportunities for donors and the third sector to learn from each other. This is especially true for most places in Continental Europe, where the state is often still seen as the one who will ‘fix’ a problem. As part of a civil society, donors need to present solutions – even the smallest – for the state to consider. It is good to know that these cases already exist, but I, at least, feel that there is a need for more and a greater diversity of them.

Every donor needs to ask themselves, “What do I want to achieve with my giving?” The question is the starting point for an exploration into the ethics, resources, approaches, objectives and causes of his, her, or even a whole family’s giving. This is not only true for the wealthy donor. If we are willing to give, then every one of us should consider our achievements and aims behind it.

The internet is one tool to increase the impact of these achievements. But it is only as convincing as the passionate people that support it. In the end, the donor decides for her or himself whether a cause or a group of people is worth her or his trust. Shakespeare, who also profited from his day’s generosity, wryly once said “Love all, but trust a few”. In philanthropy we should strive for this in the virtual world, but no more so than in reality.

Michael Alberg-Seberich is executive partner at Active Philanthropy. Active Philanthropy is committed to the promotion of a more strategic culture of giving in Europe through information materials, workshops and expeditions and advisory services for individuals and families.

Michael Alberg-Seberich is executive partner at Active Philanthropy. www.activephilanthropy.org

You can contact Michael at alberg-seberich@activephilanthropy.org