Investing in understanding you
Posted: 13 August 2012 Filed under: arts, Australia, culture of giving, grantmaker/grantee relationship, grantmaking, philanthropic sector, Philanthropists | Tags: EAG, education, FRRR, LLEAP, philanthropy, Regional, Rural, Schools, Tender Bridge Leave a comment »I had a chance recently to sit in on Philanthropy Australia’s Rural and Regional Affinity Group Meeting. It’s a group ably led by Jeanice Henderson of the Foundation for Rural and Regional Renewal (FRRR) and links together funders from across Australia with an interest in supporting communities in regional, rural and remote Australia. I was there in my capacity as Co-Convenor of the Philanthropy Australia’s Education Affinity Group but I have subsequently signed up to participate more regularly as a member of the group.
I began wondering why it was that the Foundation I work for hadn’t been involved with the Rural and Regional Affinity Group up until that point. It is a relatively new group and, like all in the philanthropic sector, I find myself ‘time poor’ a good deal of the time but the truth be told I think I may have actually dismissed the fact that I work for a foundation does make investments in those communities. Sometime when you are not explicit about what you fund (in this case regional and rural Australia) you can dismiss the role you should be playing in thinking about how to make better investments in that area.
Interestingly, I have noted the issue with ‘education funding’ too. I speak to a lot of philanthrocrats who aren’t involved in the Education Affinity Group and when we get talking about their funding priorities it’s clear that there is a genuine education cross over. Education is perhaps the broadest of all funding areas – what are we actually talking about when we say ‘education funding’? Is it simply schools support, numeracy and literacy and basic learning support for students? Or, as funders do we need to think about the wider diversity of education support we direct to young people via our arts, environment and health programs?
Last year’s Leading Learning in Education and Philanthropy survey picked up on the diversity of areas that philanthropy was making its investments to in education. A group of 25 funders actually agreed to identify themselves in the survey to outline the diversity of their education funding remit. The breath of funding priorities was impressive with areas as wides as support for the creative arts to vocational education for young people all supported. You can check out the full results via the Leading Learning in Education and Philanthropy (LLEAP) dialogue series.
In 2012 everyone involved in the LLEAP research is hopeful that the full diversity of philanthropic funders involved in education will complete the Philanthropy Survey to try to paint an even clearer picture of what funds are being directed to education by private and corporate funders. So I would urge all those funders who think they fit within the broad education remit to complete the survey and twist the arms of others they know to get involved too. As a philanthropic sector it is important we invest our time and energy into knowing how we currently engage with our partners, so that we might in the longer term improve our practices, share our learnings and ultimately do better by those communities we are aiming to support.
The LLEAP Philanthropy Survey closes on Tuesday 21 August. If you have any questions about the survey or you involvement contact Emma or Michelle via tenderbridge@acer.edu.au.
You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the blog via @3eggphil
The never changing world of philanthropy
Posted: 31 May 2012 Filed under: Centre for Effective Philanthropy, culture of giving, grantmaker/grantee relationship, grantmaking, NFP, philanthropic sector, Philanthropists | Tags: funder, giving, governance, Grantmaking, grantseeker, isomorphism, perception, philanthropy, professionalism 9 Comments »New approaches to solving old problems is the innovation mantra of more than one philanthropic foundation in Australia. Recently this got me thinking about the different approaches operating within the grantmaking space in Australia. With a few notable exceptions aside I think it is fair to say that most trusts and foundations operate in a pretty similar procedural manner. So while funders ask grantseekers to innovate in their practices there is little experimentation around grantmaking practices. Can we assume this lack of innovation from funders in their grantmaking approaches is due to the fact that funders have got their processes perfected? I wonder what grantseekers would say to that?
So what do grantseekers think of Australian funders? Officially we don’t really know but I doubt that is because applicants and grantees don’t have opinions. The unfortunate reality is that there is little opportunity provided for grantseeker or grantee feedback about a funders approach to their grantmaking. In the United States the Centre for Effective Philanthropy has developed the The Grantee Perception Report® (GPR) which provides grantmakers with comparative and frank feedback on how grantees think they are performing. Some funders even choose to make their reports publicly available. The GPR allows philanthropic boards to assess their performance as funders, this in turn helps them to work more effectively with grantees in the pursuit of their mission.
If it walks like a duck and talks like a duck…
So is the answer to better practices and diversity in grantmaking approach as simple as the provision of a feedback loop? While comparatively speaking there are greater levels of diversity in philanthropic practices across the United States it could be argued that ‘sameness’ is still the dominant feature of their foundation sector.
In a 2009 post on her philanthropy blog, Stanford University’s Centre on Philanthropy and Civil Society Visiting Fellow, Lucy Bernholz, questioned why, when there is so much that people outside of the foundation field would change about how philanthropy functions, has so little changed in past 100 years. She contends:
“It doesn’t seem possible that these practices survive because they work well, please the customers, or even please the board and staff who choose them and re-create them. Institutional isomorphism is one of those graduate school concepts that is… true to life – organizations mimic like organizations, even when it doesn’t necessarily serve their purposes” (2009).
Isomorphism is basically the much flashier way of saying ‘sameness’. It should also be said that not all about isomorphism is bad. If you look like a duck and talk like a duck chances are other ducks are going to accept you. These behaviors are really evident in the corporate world where organisations that look like each other (in terms of board structure, staffing structure, business philosophies) will more easily attract investors, customers and secure loans. In short isomorphic behavior gives many organisations legitimacy.
There have been studies that suggest that isomorphism within the nonprofit sector is not as evident as it might be in the corporate world. I’d contend however that traditional philanthropy is the exception to that nonprofit rule and there are a couple of reasons for that. Think of the really big Australian philanthropic foundations, even most of the small ones too – they seem to operate and look pretty similar to one another in their grantmaking (e.g. application process, closing dates, reviews, board meeting, results etc). Objectives and priorities might be different, but processes and board structures are fairly similar. Part of this is driven by fiduciary responsibilities. Trustees of foundations need to concerns themselves first and foremost with management of the assets – the upside is that if they do this well they can give away more money. So with grantmaking merely a by-product, it’s not hard to understand why diversity in grantmaking approach is not as evident as it might be.
Competition in the corporate world drives innovation and new behaviours. In the nonprofit world, there is competition too for funds as well as the mission driven approach that dictates how NFPs work and the skills sets that they have on their boards and among their staff. In philanthropy that competition doesn’t exist and compliance is focused almost solely on tax and law. So how do we drive diversity? How to do celebrate those foundations that invest more in understanding that sometimes what is really important is the way you give? Perhaps a good starting point is to accept some feedback from those we work with most closely, our grantees. We also need to start listening and learning from those funders who are working a little bit outside the box. What have been their experiences, successes and failures? How did they bring their boards on that journey?
So what do people think really good models of philanthropy look like? Can we start to compile some of the features that not only lead to better practices in philanthropy but greater impact on the ground?
You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the blog via @3eggphil
Increasing professionalism: the role of trustee companies in philanthropy
Posted: 3 May 2012 Filed under: Australia, culture of giving, grantmaker/grantee relationship, grantmaking, philanthropic sector, Philanthropists, Uncategorized | Tags: altruism, Australia, capacity building, donor, giving, Grantmaking, philanthropist, philanthropy, professionalism, trustee company 6 Comments »It has been expressed to me on more than one occasion that philanthropy is becoming too professional. I work in the sector, so I try not to take it personally but I think it is time to pick apart the debate a little. We’ve previously tackled on this blog the delicate balance that good philanthropic grantmaking must attempt to strike: a warm heart and a cold eye. There have been a number of good posts and speeches about the nature of philanthropy and the belief that altruism is unique and embedded within human nature. There are also the economists of this world and other theorists who believe altruism, like all other human behaviours, is incentivised and can be moulded into form.
It appears the nonprofit sector, with the exception of a couple of amateur sporting codes (Gaelic football comes to mind), is the final domain of debate around whether increased professionalism diminishes rather than increases the value of a sector. Does increased professionalism, and the development and employment costs it carries, remove much needed funding from the service coal face, or ultimately help to deliver more while building efficiencies?
With relation to professionalism within philanthropy I hear two main complaints:
- There are a lot of people making a lot of money out of spruiking the value of professional organised philanthropy and/or;
- Philanthropy has lost its benevolent heart and is no longer organic or enjoyable. In short, it’s become work rather than play.
The question of philanthropy profiteering is more often than not pointed in one direction – trustee companies. With the enormous growth in private ancillary funds and the governance arrangements they carry there is suddenly money to be made in giving away money. Of the 5,000 or so estimated trusts and foundations in Australia more than half are thought to be held within trustee companies. These pots of funding are held outside of the public view and are managed and coupled with investment and other financial services. To the cynical, trustee company philanthropy is perceived as tax-break grantmaking and the philanthropic services they offer is viewed as being muddled up with, and merely ancillary to, the bigger bucks of the financial services game.
Equally, those who lament the loss of the benevolent heart of philanthropy are genuinely fearful that philanthropy is the latest victim of fads and bureaucracies that add little value and ultimately deter people from giving. In the world of strategic grantmaking, venture philanthropy, philanhrocapitalism and engaged philanthropy, the concern is that the joy of giving has been lost and with it, potential philanthropists.
It would surprise some detractors perhaps to learn that despite concerns around profiteering and the loss of the joy of philanthropy, it appears that financial advisers and trustee companies might actually be playing an important role in both attracting people to and educating people about philanthropy. A report from the Queensland University of Technology, Foundations for Giving: why and how Australians structure their philanthropy, documents responses from 40 people involved in structured, formalised philanthropy. Virtually all respondents indicated that advisers and other intermediaries played some role in their philanthropy and the views expressed were generally positive. In fact, the negative views expressed by respondents around advisers seems to suggest a greater level of expertise in philanthropy and skills in grantmaking would be preferable.
Philanthropy is and always will be a ‘people’s’ game. Its about people being inspired by other people. Its about people trusting and believing in other people. Most of all it is about people wanting to create better lives and communities for others. It is hard to imagine that the heart of philanthropy will be lost simply through increased professionalism. In fact there is mounting evidence to suggest that the opposite may actually be true. Some of Australia’s trustee companies are driving not only increased professionalism within philanthropy, but also a greater diversity in practices and approaches to grantmaking. Some of our most vocal proponents for greater levels of giving among Australia’s wealthy, increased investment in organizational capacity support and improved engagement and evaluation of grantmaking approaches, are coming from within the trustee company sector. The gags many individual philanthropists are compelled to wear when talking about their philanthropy are less evident within adviser circles.
Good trustee companies will be passionate about their philanthropy and the approaches available to their clients. Poor trustee companies will see philanthropic services as ancillary, and more than likely will charge a hefty price for the pleasure. As is the case with all services, donors should shop around, the cream of the crop will quickly become evident.
The professionalism that trustee companies bring to client services is beginning to have an impact on philanthropy as it is delivered in Australia. It’s a diversity that the sector absolutely needs. More choice for donors and potential philanthropists is important as is greater debate on grantmaking approaches and philosophies.
You can follow the musings of Caitriona Fay via @cat_fay on twitter and the eggs via @3eggphil
Gonski calls to philanthropy
Posted: 21 February 2012 Filed under: grantmaker/grantee relationship, grantmaking, philanthropic sector, Philanthropists | Tags: capacity building, education, Gonski, Grantmaking, philanthropist, Philanthropy Australia, QUT, School 1 Comment »In the 24 hours since its release the public response has been mostly positive to David Gonski’s comprehensive report on the funding of Australia’s schools. The independent and catholic school systems, state education proponents and unions are all urging the Gillard Government to act on the recommendations of the report. With 5 billion extra dollars being earmarked by Gonski to fund his reforms it’s not all together surprising.
One of the big surprises falling from the report was the focus on the need for greater partnerships between schools and philanthropy. The recommendations equally acknowledge the role philanthropy plays in our communities and the need to better equip schools to access that funding. We’ve raised some of the issues facing philanthropists wishing to support schools in a previous post and it was great to see some of the important voices on the issue, Ros Black, Michelle Anderson, Philanthropy Australia, Brian Caldwell, Myles McGregor-Lowndes et al, referenced in the Report.
So let’s take a quick look at the recommendations the Report makes on philanthropy and school partnerships.
1. A fund to encourage philanthropic giving to schools in low socioeconomic areas
The report outlines this fund as a DGR entity focused on assisting schools to develop philanthropic partnerships. As a staffed organisation, the fund would be responsible for facilitation of school-philanthropy partnerships while also building the capacity of individual schools to better partner with philanthropy. We have seen a number of organisations working actively in this space. For example, The Australian Council for Education Research (ACER) has established the Tender Bridge with the specific intent of assisting schools to develop the skills and knowledge required to better access and work with philanthropic and corporate partners. ACER and Tend Bridge have also been the key drivers behind the Leading Learning in Education and Philanthropy (LLEAP) initiative that is investigating the impact of philanthropy in education with the aim of building knowledge and improving outcomes for schools and their philanthropic partners.
2. Capacity building
Access is a critical issue for many schools when attempting to interact with philanthropy and other potential donors.
- Access to philanthropy – understanding who is out there, how to approach donors and what a suitable partnership looks like
- Access to individuals – building and growing alumni with a view to keeping former students connected to their school communities for longer
- Access to DGR status– limitations around DGR funds, particularly for state schools means community partnerships must be developed with the non-profit sector
- Access to knowledge – understanding different types of grantmaking and sponsorship partnership and what reciprocal obligations, if any, they create
Building the capacity of schools to improve their access to all of the above is imperative in allowing school-philanthropy-business partnerships continue to grow.
3. Increase taxation incentives for donations to government schools
Seen by some as a soulless altruism, tax incentives have been highlighted as a potential means to increase donations to government schools. Debate is still hot on whether these incentives actually work but as highlighted in the Report they could at the very least be an important conversation starter between some donors and schools.
There is a good deal to do before the vision and potential of a more active philanthropy-schools collaboration is realised. Senator Jacinta Collins has been tasked by the Government with examining the Report’s philanthropy recommendations further and to continue a consultation process with the key stakeholders. The great thing however is that philanthropy has been slowly moving towards more sustained engagement with the school sector for some time. Organisations like the former Education Foundation and the Foundation for Young Australians have a wonderful history in this space. The development of the Business Working with Education Foundation is a further example of this movement as is the wonderfully engaged interaction of so many philanthropic funders with the Leading Learning in Education and Philanthropy (LLEAP) research project over the past 12 months. All of this serves as a reminder of the commitment many funders already have to finding better ways of working with schools. Let’s hope Senator Collins engages with them all.
You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the blog via @3eggphil.
2012 Trends in Philanthropy – Political Advocacy
Posted: 24 January 2012 Filed under: Advocacy, Australia, culture of giving, grantmaking, NFP, philanthropic sector, Philanthropists, USA | Tags: Aid/Watch, Blueprint 2012, Changemakers, Charity, citizens united, giving, Grantmaking, law reform, Lucy Bernholz, philanthropy 1 Comment »
As promised this post is going to continue to examine some of the trends for 2012 highlighted in Philanthropy and Social Investment Blueprint 2012 – the annual industry forecast produced by Lucy Bernholz. In my last post I looked at the first of three major shifts identified in the Blueprint, today I’ll be moving on to trend number two: the implications of the US Supreme Court‘s Citizens United ruling on philanthropy and social investing.
There is no doubt that grantmakers here in Australia have a lot to learn from philanthropy overseas. I am often reminded however that much of how and why we practice philanthropy is unique. By constantly casting an eye towards North America and Europe we risk failing to recognise and value the innovation taking place in our own backyard. So what can we here in Australia possibly learn from examining the potential implications of the Citizens United US Supreme Court decision?
Before I address that question in detail, it probably serves to give a quick rundown on what that Supreme Court decision actually amounts to. In short Citizen United removed prior restrictions on spending by corporations on election campaigns; in essence allowing these bodies the similar first amendment rights to free speech as everyday American citizens. These newly available dollars will certainly come into play in 2012, the first presidential election year since the ruling was handed down. Rather than promoting and opposing political candidates or parties directly, much of the funding from corporations is likely to flow via non profit organisations advocating on issues that serve their purpose. It is the implication of that funding process has some interesting cross over with Australia.
Around the same time that Citizens United was taking it’s case to the US Supreme Court, here in Australia an international aid watch dog called Aid/WATCH was taking its fight to hold on to its charitable tax exemptions to the High Court. In Australia, like in the US, the judges ruled in their favour. The decision asserted that Aid/WATCH, as an independent watch-dog examining how aid is distributed, may well be involved in political advocacy. Because the generation of public debate created by Aid/WATCH through their advocacy focused on the relief of poverty through foreign aid, the Judges ruled that it should not be excluded as a charitable activity. This ruling opened up direct funding of political advocacy by charitable trusts and foundations, ensuring that neither the donor, or the non-profit they were supporting, put their charitable status at risk. The Eggs have posted previously on the new place for advocacy in the Australian non-profit sector, but perhaps we have not explored the potential implications for donors in full.
In an environment more open to political advocacy from our non-profits, what are the potential implications on donors and ultimately donations? In the US, it’s likely that the Citizens United decision will lead to not only more political advocacy from non-profits but also more non-profits being created with a focus on raising money for or against their preferred candidates and issues. Here in Australia, the likelihood is that we’re gong to see a greater intensity of out and out advocacy. For some funders, the thought of seeing their long supported charities engaged in the political might be too much to bear. For other funders it will open up spheres of influence like never before.
I’ve spoken with people on both sides of the advocacy fence, those that find philanthropic support of political advocacy unseemly and those that see it as critical vehicle in mission based philanthropy. Not all philanthropic organisations in Australia believe or want to be mission driven, the warm heart of benevolence for many is still the greatest motivator. There will always be a place for both. I do sense however, that the new wave of youth and online philanthropy in this country will drive a new era of donor funded advocacy.
Should you wish to learn more about the trends in philanthropy and social investment for 2012, I’d encourage you to get your hands on a copy of Blueprint 2012:
- Hard copies from Lulu
- PDFs at Scribd
- Kindle version from Amazon
- eBook from Smashwords. Also available for Amazon Kindle, B & N Nook and others.
You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the blog via @3eggphil
Verbal reporting… the next step in effective philanthropy?
Posted: 16 January 2012 Filed under: evaluation, grantmaker/grantee relationship, grantmaking, NFP, philanthropic sector, Philanthropists | Tags: due diligence, evaluation, Grantmaking, Myer Family Philanthropic Services, philanthropy, reporting 9 Comments »
Louise Kuramoto is a Grant Researcher at the Myer Family Company. She works with families, foundation and corporates providing philanthropic research, administration and strategic advice with regard to their philanthropy.
Engaging effectively with grantees is something that many philanthropists and philanthrocrats alike strive to achieve but are we really getting it right? And when I talk of ‘engaging effectively’ I am not talking of post application feedback but rather the day-to-day relationships you hold with your grantees.
So, where do you sit on the spectrum? Think of a program you have funded and ask yourself three questions;
1. Do I have the direct contact details of the person managing or responsible for the program and have I had a conversation with them?
2. Can I explain the program’s three main challenges to achieving its objectives?
3. Am I aware of the program’s progression (or otherwise!) in the last six to twelve months?
For those of you who could not confidently answer ‘yes’ to each of the above questions you may want to give verbal reporting further consideration.
Otherwise known as face-to-face reporting, verbal reporting is a tool that some foundations have been using to varying degrees as a way to truly understand the organisations they fund and the complexities and challenges of the areas in which they work. Foundation staff cite that the reduction of paperwork for both the funded organisation and the philanthropic body is a bonus, but the real benefits of verbal reporting lie in the face-to-face interactions they have with their grantees. It is these face-to-face meetings they state, that have proved to facilitate a more open and honest dialogue between the two parties, consequently enabling the foundation to form a true partnership with its grantees and in turn, yield better results.
The Myer Family Company, in collaboration with The Portland House Foundation, held a forum late last year to explore this topic further, specifically focusing on The Portland House Foundation’s reporting model which encompasses:
- A high trust, low documentation process;
- The CEO or leader of the funded organisation committing to attend at least one face-to-face reporting meeting per year (this meeting would also include a number of other funded organisations who verbally report on their projects); and
- Supplementary documentation (such as financials etc.) is requested as needed.
The organisations represented at the forum also described the verbal reporting process as highly beneficial to their work because it provides a ‘safe’ environment whereby their organisational and project challenges can be offered for discussion and brainstorming with the donor and other attendees. This point is especially pertinent for us philanthropists/crats, who have a tendency to focus on financial giving and at times underestimate the value of the non-financial support we are able to offer. Whether it’s as a sounding board to discuss program design or harnessing the skills, knowledge or networks of board members, the value these links and expertise can leverage is often much more than any monetary figure the donor could provide.
So next time you seek an update on a particular project or receive an application in the mail, think about picking up the phone and organising a meeting with your grantee, it might change your outlook entirely.
You can follow Louise on Twitter @LouKuramoto or the Myer Family Company via @MF_Philanthropy
Prevention at the expense of the cure
Posted: 29 September 2011 Filed under: culture of giving, disadvantage, grantmaking, philanthropic sector, Philanthropists, Transparency | Tags: ambulance at the bottom, Australia, cure, Fence at the top, giving, Grantmaking, philanthropy, prevention 1 Comment »Let’s face it, these days it’s simply not in vogue to be considered a philanthropist (or philanthrocrat) driven by a spirit of benevolence. We have entered the era of the venture philanthropists, the philanthrocapitalists, the tactical philanthropists. In philanthropy, strategy is now the name of the game. Philanthropists and their foundations are finding smarter ways to give and more innovative ways of funding for impact. If this group of strategy driven philanthropists had a mantra it would likely be prevention, prevention, prevention. But when everyone wants to be the funder helping to build the fence at the top of the cliff, what does that mean for those people who need the ambulance at the bottom of it?
The philanthropic sector in Australia is racing towards a new level of maturity. It’s vastly more professional than it was as little as five years ago. But professionalism has led to a recognition that supporting prevention and mitigation programs offers greater bang for the funder’s buck. There is no disputing the fact that prevention is less costly than the cure. However, if we as a sector are encouraging a greater focus on prevention, perhaps it’s important to stop for a moment and consider at what cost?
Photographer : Cybele
I’m fortunate enough to work for a foundation that has the capacity and the inclination to fund across the grantmaking spectrum. Funding programs that seek to mitigate against homelessness are great, but there is still a desire at Board level to make sure issues of food security and the need for refuge are also addressed. For some, funding the ambulance at the expense of the fence might appear counter-productive but we’ll always need the balance.
I wrote recently about the growing recognition that great philanthropists can balance the head and the heart. Perhaps the reality is that the benevolent urge to help those in need is the heart of funding. Trying to make progress on the problems and difficulties (a great post here on the difference) that affect our communities is more a challenge for the head.
I remember reading once that Bill Gates sat his young daughter down and tried to explain to her the work the Gates Foundation was doing to find a vaccine for malaria. As they flicked through pictures of the devastation caused to those individuals already struck down she asked ‘who is helping them?’. It was a reminder to Gates, and should be to all of us, not to forget those with immediate and real need for support. It’s important that we don’t leave behind those organisations working at the bottom of the cliff for the sake of increased bang for the buck.
For some funders, prevention is the best way to give within their limited resources. For others, their philanthropy will be driven by a desire to address the need they see every day. I don’t ever think we’ll get to a stage where all funders are focusing prevention at the expense of the ‘cure’. We do however, need to be careful not to dismiss programs and organisations working to provide immediate support,as having no place in strategy driven philanthropy.
As a sector, philanthropy needs to be more introspective. Perhaps it’s time to shift our focus from funding where government can’t or won’t and start looking more closely at where the philanthropic gaps are. That requires new levels of collaboration and a transparency around our foundation missions and objectives. If we can get the balance right and find a way to solve problems and service our society’s greatest difficulties, then as a sector we will be more impactful.
You can connect with Caitriona Fay on Twitter via @cat_fay or any of the eggs via @3eggphil.
Philanthropy, the Next Generation
Posted: 22 September 2011 Filed under: culture of giving, Philanthropists, Uncategorized | Tags: Art Support Australia, Danielle Caruana, Dr Sam Prince, Emagine Foundation, Jurlique, The Australia Council, The Seed, Thora Klein-Gibaud Leave a comment »The Australia Council’s Artsupport team held two private events last week in Sydney and Melbourne, to launch an initiative targeted at cultivating a new generation of giving in Australia. I went to the Melbourne event as an interested philanthrocrat, wanting to hear the stories of the three panellists (more about them below). But my interest was mainly sparked by a desire to know what’s being done to encourage greater giving in Australia, given the ongoing negative press about wealthy Australians’ meanness. It’s a common talking point, as our blog attests.
Artsupport’s purpose is to grow cultural philanthropy in Australia. It began in 2003 with just two staff members in Sydney but now has representatives in every state and territory (except Tasmania). It’s estimated that, so far, the initiative has facilitated more than $50 million of new philanthropic income to around 200 Australian artists and 600 arts organisations – as their page of the Aus Co website says, this is a strong outcome for a government investment of nearly $5.2 million: providing a return of nearly 1,000 per cent.
The two events last week are billed as stage one of a three-year ‘New generation of giving’ plan to build a community of young philanthropists, aged between 28-39 years, with inherited or self-generated wealth; through panel sessions, dinners and other networking events (a field trip to the US was mooted…..). The younger generation, where better to start?
The Melbourne event was held at Comme, a swanky bar in Melbourne’s CBD and a favourite after-work haunt of the be-suited ladies and gentleman of the city. A smart choice given the invitees, if we’re to go purely on stereotypes that is. In fact the choice of venue called to mind my blog ’Giving is Sexy’ which explored UK research findings into why donors give and non donors don’t.
The three panellists were:
- Dr Sam Prince, Founder of the Emagine Foundation and Zambrero Fresh Mex Grill Restaurants
- Danielle Caruana, aka Mama Kin, co-Founder and director of The Seed (previously known as The JB Seed)
- Thora Klein-Gibaud, Former Director, Jurlique International and someone whose passion for music is lived out through Ngaringa Farm Arts Foundation.
Each had a very individual story about what inspired them to give, how they chose the focus of their philanthropy, what they aim to achieve through their giving and, in a good reality check, some of the problems they experienced along the way. It was inspirational stuff and I hope the intended next gen philanthropists left the evening duly inspired, with a sense of what is possible, and a better understanding of the drive, determination, motivation and nous they will need if they decide to step up to the plate.
I was certainly inspired by Danielle’s story. To me it was the most accessible of the three (I am neither an entrepreneur, nor someone with inherited wealth). The Seed’s philanthropy was born on a very small scale, using collaborations which drew on Danielle and her co-Founder, John Butler’s, networks in the music industry to amass enough support to create a fund to “help Australian artists from any background, creating art and music across any genre, to establish themselves as self-sustained, professional artists”. It has since gone on to grow and grow, supporting more and more artists. In essence, it was a great idea which met (and still meets) a need and was able to galvanise people around it. Food for thought. If you’re interested in knowing more about The Seed, this little youtube video will give you a great insight:
The New Generation of Giving initiative has good potential and I’ll watch with interest to see how it develops, because it is of inestimable importance to encourage and nurture the next generation of philanthropists.
You can follow the musings of Claire Rimmer on Twitter via @ClaireMRimmer
When is a wealthy entrepreneur a philanthropist?
Posted: 3 August 2011 Filed under: AEGN, crowd funding, culture of giving, grantmaking, philanthropic sector, Philanthropists, Uncategorized | Tags: environment, fundraising, Grantmaking, NFP, philanthropist 4 Comments »I watched with interest a couple of weeks back as word hit that Graeme Wood and Jan Cameron had tipped in $10million to buy the Triabunna woodchip mill in Tasmania. While Wood and Cameron have already established outstanding philanthropic credentials, many environmentalists would argue that the acquisition of the mill, which they intend to transform into an eco-tourism site, is their greatest gift to the community to date.While some media used language to infer the purchase was philanthropic, others simply referenced Wood and Cameron as two wealthy, conservation-minded entrepreneurs. Environmental philanthropy has long been a game of semantics.
So was the purchase of the mill philanthropic? If we believe that philanthropy is the love of mankind, or the desire to improve the well-being of humankind, then strictly speaking I’d suggest that the purchase certainly came from that place for Wood and Cameron. Regardless of your beliefs or mine, both Wood and Cameron would believe deactivating a native woodchip mill is for the benefit of all people; a healthy environment is good for us all. On the flip side, those in the forestry industry have argued that the purchase will lead to jobs loses, will do little to protect the environment and will be an economic failure as an eco-resort. But consensus on the value of the gift has never been required to define philanthropic acts.
The purchase of the mill has got me thinking; is this a sign of philanthropy moving away from its passive roots? If the purchase of the mill isn’t philanthropy, what is it? Who is it that ultimately gets to define what constitutes philanthropy?
The growth of social enterprises, crowd funding, CSR and giving structures are mixing the world of philanthropy into the world around us. Apart from the Wood and Cameron example, I’ve heard recently of a number of unique approaches to funding and fundraising. For example Anh Do’s gift to the Australian Cancer Research Council of 1% of his book takings looks set to reap some nice financial rewards – a definite act of altruism and philanthropy. I’m also hearing more regularly about the establishment of investment circles, where a percentage of income earned goes to the circle’s charity of choice. And what about sponsoring a friend to grow a ‘mo’ in November, is that an act of personal philanthropy (by both the donor and mo grower)?
No doubt, when the figures are compiled at the end of the year many of these unique approaches and ways to give back to the community will not be recorded in our ‘giving’ data. So, how much should be considered philanthropy and how much should we disregard? Does it need to pass all the public benefit tests before we can celebrate it as philanthropic?
In environment funding, litigation, advocacy and campaigning have always been the bedrock of funding approaches in the United States. It’s been tougher here in Australia. The approach taken at Triabunna Mill by Wood and Cameron is regularly at play in the United States and much of the time it is underwritten by philanthropic trusts and foundations. Perhaps what the environment (and the rest of the NFP sector) needs is less philanthropists and more wealthy, conservation-minded entrepreneurs?
Debra Morgan
Caitriona Fay
Claire Rimmer
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