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How New is the
‘New Philanthropy’?
               py


      Dr Beth Breeze
     University of K t
     U i    it f Kent

        29 August 2012
Who are the New Philanthropists?



“[New philanthropists] are individuals still in the prime of life who have been
 [New                      individuals,                      life,
successful in their chosen careers, made money, sometimes a lot of it, either in
business or in their profession.
Having
H i made enough f th i own needs th now want t use th i money, th i skills
           d           h for their        d they          t to    their         their kill
and their abilities to get things done to create something transparently useful in society.
They talk of making a difference, of giving something back, but they aren’t satisfied
by iti
b writing cheques t worthy causes, valuable th
           h       to     th              l bl though such charity can b
                                                     h    h h it        be.
These people want to be in the driving seat because that’s where they belong…
‘The chance to do this ’ one interviewee said ‘makes the whole business of making
 The              this,                  said, makes
money worthwhile’”
                                  Charles Handy (2006) The New Philanthropists, p.9
What is allegedly new about ‘New Philanthropy’?



1.
1 New types of donors
   They are younger, richer, self-made, entrepreneurial and living a cosmopolitan lifestyle.
2. New types of causes
   They
   Th support emerging i
              t     i issues notably global h lth problems and th environmental
                               t bl l b l health     bl      d the   i      t l
   crisis.
3. New approaches to giving
   They
   Th conduct th i philanthropy i a h d
            d t their hil th     in hands-on, controlling, strategic, innovative, catalytic,
                                                 t lli      t t i i         ti      t l ti
   leveraging and outcome-focused way


NB: ‘New philanthropy’ is synonymous with:
    – Venture philanthropists
    – Philanthrocapitalists
    – High-engagement philanthropists
New Philanthropist traits have been
                      identified on both sides of the Atlantic


“Britain's new philanthropists share with Buffet and Gates a mixture of impatience and
 Britain s
business acumen that is shaking up the charity world. Reluctant to sign away their money
to traditional [charities], they are adopting a hard-nosed approach that insists on looking
at the bottom line. They want to make a difference, but balk at feeding the maws of self-
                          y                           ,                g
perpetuating bureaucracies that squander money on administration and promotional
campaigns. If charities don't cut the mustard, they are prepared to go it alone.”
                                                                     Sunday Times 2/7/06
But, are these ‘New Philanthropy’ traits…



– Wholly new?
– Particularly widespread?
– Specific to p
   p          philanthropic activity?
                        p          y
How new are the ‘new types of donors’?




Are they distinctively younger, richer, more likely to be self-made, entrepreneurial and
living a more cosmopolitan lifestyle than philanthropists from the past?


Andrew Carnegie
John D. Rockefeller
J h D R k f ll
Thomas Guy
Isaac Wolfson
Joseph Rowntree
How new are the ‘new types of causes’?



Are they distinctive in dealing with emerging issues?


Prevailing issues change over time, e.g.:
         g                g              , g
15th C – replace pre-Dissolution poor relief, help poor maids to marry
16th C – pay ransoms for people captured by pirates
17th C – rebuild London after the Great Fire
18th C – support for foundlings, b ildi H
                 tf f     dli     building Hospitals,
                                                 it l
19th C – abolition of the slave trade, building schools
20th C – support for soldiers, relief for war refugees and war-torn countries
21st C – global health problems notably AIDS climate change
                                           AIDS,



The role for philanthropists in any given era depends on the wider context social norms and
                                                                   context,
what needs are failing to be met by the private and public sectors
Who are the New Philanthropists?



“The worthy citizen of the eighteenth century relieved his conscience by a gift to an
 The
orphanage; the benevolent lady of the nineteenth century distributed soup and blankets.
Her daughter ‘taught the orphan boy to read and the orphan girl to sew’; her grand-daughter
went ‘slumming’. The twentieth-century lady is on the committee of the village institute; her
              g                        y   y                                g           ;
daughter is a guide captain and her son helps at an unemployment centre”

“The garden of charity needs constant pruning and weeding and replanting. Schemes which
have outworn their usefulness must be allowed t di others showing f h shoots must b
h       t     th i     f l        t b ll     d to die; th   h i fresh h t          t be
strengthened, and new growths must be tended and nurtured”
                                           Elizabeth Macadam (1934) The New Philanthropy
How new are ‘new approaches to giving’?



Are they more likely to conduct their philanthropy in a hands on controlling, strategic
                                                        hands-on, controlling strategic,
innovative, catalytic, leveraging and outcome-focused way?


17th C – Emergence of ‘associational philanthropy’
18th C – Loan finance for hospitals’ running costs, Foundling Hospital cost-benefit ratios
19th C – Social housing movement and ‘Five percent philanthropy’
20th C – M
         Measuring need (
                 i      d (e.g. B th) sustainability th
                                Booth),    t i bilit through earnt i
                                                            h    t income ( (eg. bli d h
                                                                                 blind homes)
                                                                                            )
Why has the idea of ‘New Philanthropy’
                     gained widespread acceptance?


1.
1 The loss of historical memory
2. The ‘preference for novelty’
3. The desire for distinction
Conclusions



The role of the philanthropist is continually being re-invented to reflect contemporary
                                                    re invented
needs, dominant values, available wealth, technological developments and the broader
socio-political context.

‘New philanthropy’ is primarily a presentational trope and a strategy to make philanthropy
more appealing to both potential donors and the observing public.

Philanthropy i no ‘
Phil th      is   ‘newer’ t d th at any period i th past.
                        ’ today than t     i d in the  t
Philanthropy is now, as it always has been, a product of its time.
If you don’t believe me, listen to the donors…



“I know that other big givers often have a strong theory behind their giving but mine is
quite simple. I h
   i   i l      have made some money and think I ought to give something b k to the
                        d                   d hi k      h     i          hi back       h
people and places that are significant in my life.”
Jimi Heselden, £25m+ to Leeds Community Foundation

“Perhaps if I had a family member with a different health problem, like autism, then I
would be supporting a charity that helps autistic children rather than the Great Ormond
Street Hospital But this is the situation that I find myself in ”
       Hospital.                                             in.
Heather Beckwith, £1m to GOSH for research into a condition affecting her
grandson

“Talent, hard work, young people heading to the top. But of course – I have to like them”
Barrie Wells, £2m funding for talented young Olympians, talking about how he
chooses who to fund

“The only yardstick that I can ultimately use to judge my philanthropic decisions,
is the tingling sensation I get in my body, which means: that is what I need to do.”
George Koukis 2012 Million Pound Donors Report
          Koukis,
Please keep in touch!




Dr Beth Breeze
         Bree e
Centre for Philanthropy, University of Kent

email:     b.breeze@kent.ac.uk
website: www.kent.ac.uk/sspssr/cphsj
twitter:   @UKCPhilanthropy
blog:      blogs.kent.ac.uk/philanthropy

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How new is the 'new philanthropy'?

  • 1. How New is the ‘New Philanthropy’? py Dr Beth Breeze University of K t U i it f Kent 29 August 2012
  • 2. Who are the New Philanthropists? “[New philanthropists] are individuals still in the prime of life who have been [New individuals, life, successful in their chosen careers, made money, sometimes a lot of it, either in business or in their profession. Having H i made enough f th i own needs th now want t use th i money, th i skills d h for their d they t to their their kill and their abilities to get things done to create something transparently useful in society. They talk of making a difference, of giving something back, but they aren’t satisfied by iti b writing cheques t worthy causes, valuable th h to th l bl though such charity can b h h h it be. These people want to be in the driving seat because that’s where they belong… ‘The chance to do this ’ one interviewee said ‘makes the whole business of making The this, said, makes money worthwhile’” Charles Handy (2006) The New Philanthropists, p.9
  • 3. What is allegedly new about ‘New Philanthropy’? 1. 1 New types of donors They are younger, richer, self-made, entrepreneurial and living a cosmopolitan lifestyle. 2. New types of causes They Th support emerging i t i issues notably global h lth problems and th environmental t bl l b l health bl d the i t l crisis. 3. New approaches to giving They Th conduct th i philanthropy i a h d d t their hil th in hands-on, controlling, strategic, innovative, catalytic, t lli t t i i ti t l ti leveraging and outcome-focused way NB: ‘New philanthropy’ is synonymous with: – Venture philanthropists – Philanthrocapitalists – High-engagement philanthropists
  • 4. New Philanthropist traits have been identified on both sides of the Atlantic “Britain's new philanthropists share with Buffet and Gates a mixture of impatience and Britain s business acumen that is shaking up the charity world. Reluctant to sign away their money to traditional [charities], they are adopting a hard-nosed approach that insists on looking at the bottom line. They want to make a difference, but balk at feeding the maws of self- y , g perpetuating bureaucracies that squander money on administration and promotional campaigns. If charities don't cut the mustard, they are prepared to go it alone.” Sunday Times 2/7/06
  • 5.
  • 6. But, are these ‘New Philanthropy’ traits… – Wholly new? – Particularly widespread? – Specific to p p philanthropic activity? p y
  • 7. How new are the ‘new types of donors’? Are they distinctively younger, richer, more likely to be self-made, entrepreneurial and living a more cosmopolitan lifestyle than philanthropists from the past? Andrew Carnegie John D. Rockefeller J h D R k f ll Thomas Guy Isaac Wolfson Joseph Rowntree
  • 8. How new are the ‘new types of causes’? Are they distinctive in dealing with emerging issues? Prevailing issues change over time, e.g.: g g , g 15th C – replace pre-Dissolution poor relief, help poor maids to marry 16th C – pay ransoms for people captured by pirates 17th C – rebuild London after the Great Fire 18th C – support for foundlings, b ildi H tf f dli building Hospitals, it l 19th C – abolition of the slave trade, building schools 20th C – support for soldiers, relief for war refugees and war-torn countries 21st C – global health problems notably AIDS climate change AIDS, The role for philanthropists in any given era depends on the wider context social norms and context, what needs are failing to be met by the private and public sectors
  • 9. Who are the New Philanthropists? “The worthy citizen of the eighteenth century relieved his conscience by a gift to an The orphanage; the benevolent lady of the nineteenth century distributed soup and blankets. Her daughter ‘taught the orphan boy to read and the orphan girl to sew’; her grand-daughter went ‘slumming’. The twentieth-century lady is on the committee of the village institute; her g y y g ; daughter is a guide captain and her son helps at an unemployment centre” “The garden of charity needs constant pruning and weeding and replanting. Schemes which have outworn their usefulness must be allowed t di others showing f h shoots must b h t th i f l t b ll d to die; th h i fresh h t t be strengthened, and new growths must be tended and nurtured” Elizabeth Macadam (1934) The New Philanthropy
  • 10. How new are ‘new approaches to giving’? Are they more likely to conduct their philanthropy in a hands on controlling, strategic hands-on, controlling strategic, innovative, catalytic, leveraging and outcome-focused way? 17th C – Emergence of ‘associational philanthropy’ 18th C – Loan finance for hospitals’ running costs, Foundling Hospital cost-benefit ratios 19th C – Social housing movement and ‘Five percent philanthropy’ 20th C – M Measuring need ( i d (e.g. B th) sustainability th Booth), t i bilit through earnt i h t income ( (eg. bli d h blind homes) )
  • 11. Why has the idea of ‘New Philanthropy’ gained widespread acceptance? 1. 1 The loss of historical memory 2. The ‘preference for novelty’ 3. The desire for distinction
  • 12. Conclusions The role of the philanthropist is continually being re-invented to reflect contemporary re invented needs, dominant values, available wealth, technological developments and the broader socio-political context. ‘New philanthropy’ is primarily a presentational trope and a strategy to make philanthropy more appealing to both potential donors and the observing public. Philanthropy i no ‘ Phil th is ‘newer’ t d th at any period i th past. ’ today than t i d in the t Philanthropy is now, as it always has been, a product of its time.
  • 13. If you don’t believe me, listen to the donors… “I know that other big givers often have a strong theory behind their giving but mine is quite simple. I h i i l have made some money and think I ought to give something b k to the d d hi k h i hi back h people and places that are significant in my life.” Jimi Heselden, £25m+ to Leeds Community Foundation “Perhaps if I had a family member with a different health problem, like autism, then I would be supporting a charity that helps autistic children rather than the Great Ormond Street Hospital But this is the situation that I find myself in ” Hospital. in. Heather Beckwith, £1m to GOSH for research into a condition affecting her grandson “Talent, hard work, young people heading to the top. But of course – I have to like them” Barrie Wells, £2m funding for talented young Olympians, talking about how he chooses who to fund “The only yardstick that I can ultimately use to judge my philanthropic decisions, is the tingling sensation I get in my body, which means: that is what I need to do.” George Koukis 2012 Million Pound Donors Report Koukis,
  • 14. Please keep in touch! Dr Beth Breeze Bree e Centre for Philanthropy, University of Kent email: b.breeze@kent.ac.uk website: www.kent.ac.uk/sspssr/cphsj twitter: @UKCPhilanthropy blog: blogs.kent.ac.uk/philanthropy