Richer
Lives:
why rich
people give
Presented by Theresa Lloyd
Curated by Chapel & York Limited
What we’ll look at today
• The changing nature of philanthropy – in the UK and
elsewhere
• Characteristics of “new” philan...
Which Rich - the data set
• over 80 wealthy UK donors, divided equally between a
cohort who were first interviewed by Ther...
Changes in the UK Philanthropy
scene
We identify 6 main themes
• Growth in giving by the rich, in a context of increasing ...
More trends
We also note
• Shift in source of wealth
• Increase in overall wealth levels
• Global inter-generational trans...
A changing marketplace
• A number of people developing new models and products
• New sources of information
• Increasing i...
Philanthropy matters more to
donors and society
80% - personal commitment to philanthropy has increased
78% - profile of p...
Key messages about donors
• Philanthropy is a very important aspect of the lives of both
younger and older donors
• Donors...
What is different about new
philanthropists?
• Level of wealth
• Attitudes
– Entrepreneurial and risk taking
– More strate...
New ways of supporting
charities
• New types of financing
• Targeting gaps in current services
• Venture philanthropy
• Th...
Venture philanthropy
• High engagement
• Tailored financing
• Multi-year support
• Non-financial support
• Organisational ...
Social investment
• Use of capital to generate social as well as financial returns
• Vision for its use
• Sits in an inves...
Types of social investment
products
• Social impact bonds
• Performance related investments
• Directly into social enterpr...
What has this to do with me?
• This is the marketplace in which philanthropists and those seeking
their engagement are ope...
What makes a donor?
• Values
• Motivations
Influences on values
• Faith
• Family and community
• The immigrant experience
Why do rich people give?
• Because they believe in the cause
• Because they want to be a catalyst for change
• Because phi...
Also...
• Because they believe philanthropy is the right use of surplus
money.
• Because they are clear about the compleme...
Giving to specific causes
• They have an existing interest in the issues or the cause
• They are confident that their mone...
So what else matters when they
decide what requests to consider?
• if asked by an existing donor who is someone they know
...
How do they filter requests?
- I really feel my money will make a difference
- I am already interested in the cause
- It f...
Other factors?
• Taking time to develop the relationship
• Matched funding – more of an incentive than the tax break
• Giv...
Most satisfying donations
• Support of individuals – making a difference to individual
lives
• Making something happen (th...
Why people don’t give
• A lack of understanding of the real level of wealth, coupled with
feelings of insecurity
• Absence...
Some more reasons why
people don’t give
• Fear of donations being mishandled, or not spent effectively
• Living in a socia...
But what about fundraisers?
• Fundraisers are seen to have become more professional in their
approach
– better research be...
Some important questions
• Does the approach of the fundraiser matter?
• What kind of relationship do donors expect and wh...
Implications
• The role of peer ambassadors is hugely important
It will then be up to the charity to
• persuade the prospe...
What does this mean for
charities
I think people respond really well when you’ve got
a really crystal clear idea and you’v...
Recommendations
1) Charities must become far better at asking.
2) Experiences of serious giving must be positive and
reinf...
Being philanthropic enriches
the lives of donors
“Philanthropy makes you feel good, and I don’t mean
goody-goody two shoes...
Some UK-based sources of
information
Newspapers and regular publications
• Financial Times
• Economist
• Spears wealth man...
More sources of information
Research
• Million Pound Donor reports:
http://www.kent.ac.uk/sspssr/cphsj/research/couttsmill...
Your opportunity – turning dreams into
reality
“Giving is a way of life, it is part of the reason I think I exist. The
lik...
Thank you!
• For participating
• For reading the book
• For helping to build a stronger culture of philanthropy in
the UK ...
Contact information
For more information go to http://www.richerlives.org/
To order go to www.dsc.org.uk/rl
Theresa Lloyd
...
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Richer Lives: Why Rich People Give - Presented by Theresa Lloyd

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Philanthropy is of increasing importance in modern society, yet the motivations and expectations of philanthropists appear little understood, either by those seeking funds or by those hoping that voluntary donations will help to bridge public sector funding gaps.

Join Theresa Lloyd, co-author of the groundbreaking book ‘Richer Lives – Why Rich People Give’ for this presentation as she explains why and how the richer members of our society engage in philanthropy.

This webinar is designed for:

- Fundraisers, especially major donor fundraisers.
- CEOs, senior managers, staff and volunteers in non-profit organisations as well as charity trustees.
- Professional advisers (e.g. bankers & lawyers, as well as philanthropy experts) working with donors and charities, and relevant umbrella bodies.
- Academics including students on courses concerned with the voluntary sector, especially students of philanthropy, fundraising and the third sector as well as general social policy.
- University libraries and resource centres operated by voluntary organisations.

Slides taken from the 25th April 2014 Webinar

A recording of this presentation is available. Please contact websupport@chapel-york.com for further information

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Richer Lives: Why Rich People Give - Presented by Theresa Lloyd

  1. 1. Richer Lives: why rich people give Presented by Theresa Lloyd Curated by Chapel & York Limited
  2. 2. What we’ll look at today • The changing nature of philanthropy – in the UK and elsewhere • Characteristics of “new” philanthropists • A review of motivations • Giving to a specific cause • How requests are filtered • What donors think of fundraisers • What is a major gift • Implications and recommendations
  3. 3. Which Rich - the data set • over 80 wealthy UK donors, divided equally between a cohort who were first interviewed by Theresa Lloyd in 2002, for Why Rich People Give (“established”), and a set of younger donors, some relatively new to philanthropy (“emerging”). • 12 philanthropy advisers • 16 fundraisers and other experts.
  4. 4. Changes in the UK Philanthropy scene We identify 6 main themes • Growth in giving by the rich, in a context of increasing wealth disparity • The development of the UK philanthropy infrastructure, including the provision of advice and the development of philanthropy as an academic study • The growing government interest and investment in encouraging charitable giving, including matched funding initiatives, and wider sector initiatives to promote and recognise philanthropy • The development of new ways of philanthropic engagement, including venture philanthropy and various forms of social investment • The transformations triggered by technology • The rise of ‘enrichment’ as a key driver of philanthropic activity, including The Giving Pledge.
  5. 5. More trends We also note • Shift in source of wealth • Increase in overall wealth levels • Global inter-generational transfer of wealth • An increasingly educated donor constituency, with high expectation
  6. 6. A changing marketplace • A number of people developing new models and products • New sources of information • Increasing interest in measuring the impact of donor intervention • Untapped market of wealthier people • Increasing interest in donor education • Role models who are willing to stand up and be counted • Improving research base • Developments in the tax regime, particularly for higher net worth individuals • Wealth managers and advisers seeing philanthropy advice as an opportunity to add value to their service, and more people seeking advice
  7. 7. Philanthropy matters more to donors and society 80% - personal commitment to philanthropy has increased 78% - profile of philanthropy in the UK has improved 67% - public opinion is more positive 55% - political climate is more conducive to encouraging philanthropy .
  8. 8. Key messages about donors • Philanthropy is a very important aspect of the lives of both younger and older donors • Donors give because it enriches their lives • Philanthropists change they way they give over time • The end of the armchair philanthropist • Fundraising is improving but there is no room for complacency and it needs the input of donors as askers
  9. 9. What is different about new philanthropists? • Level of wealth • Attitudes – Entrepreneurial and risk taking – More strategic and engaged – Interest in impact, accountability and transparency – Leverage and collaboration
  10. 10. New ways of supporting charities • New types of financing • Targeting gaps in current services • Venture philanthropy • The rise of the social investor
  11. 11. Venture philanthropy • High engagement • Tailored financing • Multi-year support • Non-financial support • Organisational capacity-building • Performance measurement • http://evpa.eu.com
  12. 12. Social investment • Use of capital to generate social as well as financial returns • Vision for its use • Sits in an investment portfolio between philanthropy and commercial investments • Critical component of a commitment to impact investment
  13. 13. Types of social investment products • Social impact bonds • Performance related investments • Directly into social enterprises or • Indirectly into intermediary funds
  14. 14. What has this to do with me? • This is the marketplace in which philanthropists and those seeking their engagement are operating! • Donors have a choice of causes and a choice of investment models • Donors like the concept because – They believe it incentivises impact – It provides a return which they can reinvest – It provides a hand-up rather than a hand-out
  15. 15. What makes a donor? • Values • Motivations
  16. 16. Influences on values • Faith • Family and community • The immigrant experience
  17. 17. Why do rich people give? • Because they believe in the cause • Because they want to be a catalyst for change • Because philanthropy helps them to develop as a person • Because they feel a duty and responsibility to share their wealth • Because they enjoy the relationships that develop with the charity leadership, with fellow donors and with the beneficiaries
  18. 18. Also... • Because they believe philanthropy is the right use of surplus money. • Because they are clear about the complementary roles of government and philanthropy. • Because they believe philanthropy is a good parenting tool. • Because they appreciate appropriate recognition • Because they get joy out of giving.
  19. 19. Giving to specific causes • They have an existing interest in the issues or the cause • They are confident that their money really will – be spent effectively, by a well-managed organisation that has a robust business plan and a culture of accountability and transparency – make a real difference to/have an impact on the lives of people about whom they care, and be of public benefit • also (in 2012/13) • It fits in with their predetermined giving objectives “I conduct research trips to seek out funding opportunities – approaching charities that are of interest. If the meetings go well I will ask the charities to submit proposals”.
  20. 20. So what else matters when they decide what requests to consider? • if asked by an existing donor who is someone they know and respect
  21. 21. How do they filter requests? - I really feel my money will make a difference - I am already interested in the cause - It fits in well with my pre-determined giving aims - I am asked by someone I know and respect - I like the approach made by the fundraiser 74% 74% 73% 69% 31%
  22. 22. Other factors? • Taking time to develop the relationship • Matched funding – more of an incentive than the tax break • Giving collaboratively
  23. 23. Most satisfying donations • Support of individuals – making a difference to individual lives • Making something happen (that wouldn’t otherwise have happened) • Effective relationship management • Support of local community, or other community with whom have strong affinity
  24. 24. Why people don’t give • A lack of understanding of the real level of wealth, coupled with feelings of insecurity • Absence of a tradition or expectation that they would give • Uncertainty about the level at which to give • Not being asked effectively • Lack of peer pressure, or pressure from someone they wish to impress
  25. 25. Some more reasons why people don’t give • Fear of donations being mishandled, or not spent effectively • Living in a social cocoon • Have not seen or experienced a cause or issue about which they care passionately • Have not seen how they could make a difference • Haven’t experienced the buzz and fun of giving • Perceived complexity • Lack of time to devote to the issue
  26. 26. But what about fundraisers? • Fundraisers are seen to have become more professional in their approach – better research before donors are approached – better understanding of how donors wish to engage with causes. • But not so good at – explaining tax breaks – offering appropriate recognition
  27. 27. Some important questions • Does the approach of the fundraiser matter? • What kind of relationship do donors expect and whom do they expect to deal with? • How do you and your organisation define a major donor? How do donors see it? • Being alert to reciprocity! • Getting it wrong
  28. 28. Implications • The role of peer ambassadors is hugely important It will then be up to the charity to • persuade the prospect that the cause is consistent with their own values and predetermined objectives, and • to be able to show how donor investment will be effectively spent and make a real difference to the lives of people about whom they care, and • make the experience as rewarding and enriching as possible so that that they want to repeat it!
  29. 29. What does this mean for charities I think people respond really well when you’ve got a really crystal clear idea and you’ve really defined what the proposition is and they can see clearly where the money will go and what it will achieve. I think the more precise you can be, and the more you can engage people emotionally in whatever it is you want them to give the money to, and they can see the professionalism in how the money will be spent, I think those are things that really get people willing to say yes An experienced donor-asker “ ”
  30. 30. Recommendations 1) Charities must become far better at asking. 2) Experiences of serious giving must be positive and reinforcing. 3) Integrate legacy promotion with other forms of relationship development. 4) Consider matched funding schemes. 5) Charities must address the lack of confidence in their competence and efficiency.
  31. 31. Being philanthropic enriches the lives of donors “Philanthropy makes you feel good, and I don’t mean goody-goody two shoes, righteously good, but it just makes you feel good inside. You get a buzz.” “I do it because it’s such fun, it’s selfish, I get such enjoyment. I am privileged to be able to do it.” “Giving and running my trust has taken the role in my life that was previously occupied by my job. I hope it gives meaning to my life for the next 20 years or so.” “Seeing these projects develop and bring major benefits to people has been a life-enhancing experience” “It’s a really high privilege… It moves me to tears, it lifts the spirits”
  32. 32. Some UK-based sources of information Newspapers and regular publications • Financial Times • Economist • Spears wealth management magazine: http://www.spearswms.com/ • Local papers • http://www.alliancemagazine.org/ Websites/newsletters/articles • New Philanthropy Capital: http://www.thinknpc.org/ • Philanthropy Impact: http://www.philanthropy-impact.org/ Merger of EAPG, PUK and Phil Adviser Forum, in particular: http://www.philanthropy-impact.org/expert-opinion/philanthropic- fundraisingwhat-can-we-learn-wealthy-donors • Institute for Philanthropy: http://www.instituteforphilanthropy.org/ and • All “competitors” for the investment
  33. 33. More sources of information Research • Million Pound Donor reports: http://www.kent.ac.uk/sspssr/cphsj/research/couttsmilliondonor.html • Factary research http://factary.com/ Government funded reports • http://www.hefce.ac.uk/pubs/rereports/year/2012/philanthropyreview/ On venture philanthropy and social investment • http://evpa.eu.com • http://www.cityoflondon.gov.uk/business/supporting-local- communities/Documents/a-brief-handbook-on-social-investment.pdf Books • Richer Lives www.richerlives.org • Why Rich People Give • Giving is Good for You – John Nickson
  34. 34. Your opportunity – turning dreams into reality “Giving is a way of life, it is part of the reason I think I exist. The likelihood of an increase [in my giving] is not a function of how much I have. I will give more if the projects that I believe in are present or a good opportunity exists”. An interviewee for Richer lives “There is no such thing as a shortage of major donors. There is only a shortage of great ideas to raise money. A desperate need for visions and dreams… Mega givers are captivated by the opportunity, the challenge, the magic of being able to do something special” Jerold Panas (1984) Mega Gifts: Who gives them, who gets them? “A dream doesn't become reality through magic; it takes sweat, determination and hard work.” Colin Powell
  35. 35. Thank you! • For participating • For reading the book • For helping to build a stronger culture of philanthropy in the UK and elsewhere
  36. 36. Contact information For more information go to http://www.richerlives.org/ To order go to www.dsc.org.uk/rl Theresa Lloyd The Philanthropy Advisory Service London office: +44 (0) 20 7569 8740 Bath office: +44 (0) 1225 321850 Mobile: +44 7740 512456 Skype: theresaslloyd theresa@theresalloyd.co.uk www.theresalloyd.co.uk Dr Beth Breeze Director, Centre for Philanthropy School of Social Policy, Sociology and Social Research University of Kent Canterbury CT2 7NF 01227 824 303 07932 745 989 b.breeze@kent.ac.uk www.kent.ac.uk/sspssr/cphsj Blogging at https://blogs.kent.ac.uk/philanthropy/ Tweeting @UKCPhilanthropy

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