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Tips & Advice, For Investors

Charity is changing

Leslie Strudwick September 29, 2011

The world of philanthropy and charity is changing. Which shouldn’t be a surprise – every other industry evolves according to the changes in people’s behaviours and attitudes, so why not charity?

We want more say and more influence over where our money goes. With the rise of social media, we have gotten used to saying our piece whenever we want and having influence.

This article from the UK provides some great details on the changing tide. Replace “trusts” with “private foundation” and the scenario fits just as well for Canada. It’s a scenario that Chimp addresses at every point – making the world of well-managed philanthropy available to everyone.

Don’t think you’re a philanthropist? Don’t sell yourself short; if you’ve ever donated to a charity, to a friend raising money for a cause, even to a panhandler on the street, you’re a philanthropist. This could apply to you, too. So, does it?

 

A quarter of philanthropists set up trusts “for involvement and control”

Twelve per cent did so because of concerns over other charities' costs or efficiency, according to survey by the consultancy Factary.

More than a quarter of philanthropists who set up their own trusts do so because they want involvement and control over the use of their money, according to new findings from the research consultancy Factary.

The organisation interviewed more than 100 founders of grant-making organisations over the past year. When asked what had been their main motivation for setting up their organisation, 27 per cent said it was that they wanted to be involved and have control over where their money went.

Seventeen per cent said they wanted to provide funding for "under-served" causes, and 12 per cent said it was because they had concerns over the administration costs or efficiency of other charities.

Eighty per cent of people who gave this final reason had previous experience in the not-for-profit sector, which the report says is a "slight concern."

Chris Carnie, director of Factary, said charities should note that many of the people setting up trusts did so because they wanted personal involvement and control over their giving.

"That’s the key message for fundraisers," he said. "We’ve gone too long with the idea that ‘we’ll take your money and do what we want’. We have to look at how we can build relationships or partnerships with philanthropists, in which the philanthropist has some measure of involvement and control."

By Sophie Hudson, Third Sector Online, 29 September 2011

 

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