An overview of research on major donors

1. An overview of research on major donors Institute of Fundraisers Major Donor conference, 3rd March 2014 Dr Beth Breeze, Director, Centre for Philanthropy, University of Kent

2. Overview 1. Key data on major donors: • Sunday Times Rich List Giving Index • Coutts Million Pound Donor Report 2. The context for understanding major donors: • US research • UK research • Public & Media opinion 3. Key findings from my research: • Personal taste & preferences • Philanthropic autobiographies • Enjoyment as a driver of philanthropy 4. The Guinness paradox and other Conclusions

3. Sunday Times Rich List Giving Index

4. Million Pound Donor Report: how many? how much?

5. Source of Million Pound donations in 2012

6. Size of Million Pound Donations in 2012

7. Destination of Million Pound donations in 2012

8. The US research: why do rich people give? • Because they can: They have made more money at a younger age and they recognise they are financially secure. • Because they want to limit the amount of inheritance left for their heirs. • Because they want to apply their entrepreneurial skills in the social and environmental realm. Paul Schervish (2008) In Sargeant (ed.) ‘Routledge Companion to Nonprofit Marketing’ “Philanthropy grows out of the donor’s sense of identity… [Philanthropists wish to leave] footprints in the sand of time” Francie Ostrower (1995) Why the Wealthy Give “Philanthropy exists because of two truths about the human condition: things often go wrong and things could always be better. The philanthropic tradition is the history of the response to these two facts”. Payton and Moody (2008) Understanding Philanthropy: It’s meaning and mission

9. The UK research: why do rich people give? • Because they believe in the cause. • Because they want to be a catalyst for change. • Because philanthropy helps them achieve self-actualisation. • 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. • 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 the recognition that comes with being philanthropic. • Because philanthropy enriches their life. Source: B. Breeze & T. Lloyd (2013) Richer Lives. London: Directory of Social Change

10. Public/Media opinion on why rich people give Widespread cynical/negative view that major donors seek enhanced status, power, control, reputation & elite networking opportunities. Philanthropy is “mere ostentation”, “a passport to the in-crowd” and “another way of exerting power and control” (Polly Toynbee & David Walker 2008 ‘Unjust Rewards’) [Philanthropy] “attracts the bored and under-qualified” (The Times 29/3/06) [Philanthropists are] “hypocrites with more money than sense” (Independent on Sunday 17/9/06) [Philanthropists are] “motivated by a desire to be loved by as many as possible” (Sunday Telegraph 19/2/06) Bill Gates is giving millions to charity. So? Why not? What else could he possibly do with all his money except coat himself in treacle and roll in banknotes?” (The Guardian 28 November 2006) Disgraced philanthropist Dickensian philanthropist Philandering philanthropist Tax-ruse philanthropist Couture-clad philanthropist Ruthless philanthropist All adjectives appear in UK media coverage during 2006

11. Some findings from my research • Personal taste and preferences • Personal background / Philanthropic autobiographies • Enjoyment as a driver of philanthropy

12. The importance of personal tastes and preferences “It’s really what in one’s own mind one thinks is a deserving cause, and it does range, you know, hugely widely, and totally irrationally. I mean, I would support deserving dogs but I wouldn’t support cats [laughs] because I just happen not to like cats” “I donate to the RSPB [Royal Society for the Protection of Birds] because birdwatching is one of my great obsessions. It’s my, kind of, my treat to myself, if you like”. “[I support] Sustrans because we’re interested in cycling… Ramblers [Association] sometimes, because we like walking.” “I’m a passionate skier, so a personal favourite is a charity that provides snow sports opportunities for people with disabilities” “Appropriate beneficiaries are people who are hard up… [but] I did put a rather large sum into helping to buy and restore an old Victorian steam engine… I hope maybe when it gets going I might be allowed to stand on the footplate and blow the whistle!”

13. The role of ‘philanthropic autobiographies’ “I grew up by the sea so I support the RNLI” “I have a child and the very first thing I started off doing was child sponsorship”, “My brother died of bowel cancer so I give to cancer research”. “[I support] butterfly conservation. When I was a boy I collected butterflies so I’m trying to give back, if you like, the damage that I did [because] in those days you were encouraged to kill butterflies and collect them, so that’s an important one” “Sigmund Freud called biology destiny. In philanthropy, biography is destiny” Reynold Leyy (1999) Give and Take. Harvard Business School Press

14. The crucial factor of Enjoyment “I like to have something worthwhile to get up for each morning… I find that the larger and more strategic the gift, the more pleasure I get out of it”. Stephanie Shirley, 2010 report “[my donation of $150m to Oxford University] has really been the most exciting and fascinating opportunity and it has changed my life for the better” James Martin, 2010 report “The huge pleasure and satisfaction that is to be gained from spending one’s time in giving in your later years far outweighs any pleasures that you can possibly gain on the golf course, on the beach or on the back of the yacht in the Mediterranean sipping martinis.” Mike Oglesby, 2010 report “For me, it is not just a case of giving away money, it’s about meeting the researchers we fund. Meeting people like neuroscientists is more interesting than anything I will ever do in any other part of my life” Richard Ross, 2011 report “I can’t get over it; I’m still shaking when I talk about it. It’s just incredible… I feel a bit guilty about getting so much pleasure out of giving” Terry Bramall, 2012 report “When I get thanked and hugged, I always say: “I’m actually getting as much benefit and happiness out of it as you are!” Barrie Wells, 2012 report

15. Why do people give – a simpler explanation?

16. Giving Pledgers explain their philanthropy Est. 2010 - by April 2013 105 signatories, worth a minimum of $500 billion. “The idea of the pledge came out of discussions we had with other givers about what they were doing, about what had worked in philanthropy and what had not worked. Everyone shared how giving had made their lives richer.” Bill Gates “Over the years, the emotional and psychological returns I have earned from charitable giving have been enormous. The more I do for others, the happier I am. The happiness and optimism I have gained from helping others are a big part of what keeps me sane… A number of my closest friends, partners and advisors I met through charitable giving… Life becomes richer the more one gives away… I get tremendous pleasure from helping others. It’s what makes my life worth living.” Bill Ackman “Making a difference in people’s lives — and seeing it with your own eyes - is perhaps the most satisfying thing you’ll ever do. If you want to fully enjoy life — give.” Michael Bloomberg

17. Giving Pledgers (UK) “We do not believe that spending any more money on ourselves or our family would add anything to our happiness” David Sainsbury “‘Stuff’ really is not what brings happiness. Family, friends, good health and the satisfaction that comes from making a positive difference are what really matters.” Richard Branson “Philanthropy gives me far more pleasure and satisfaction than making money. In fact, making money is now largely driven by the knowledge that I will be able to leave even more wealth behind for charitable causes when I go… My message to those who have not yet found philanthropy is that they may well find that it becomes a drug that gives far more pleasure than the creation of wealth.” John Caudwell

18. If it’s so much fun, how come some people don’t give? Of 1,223 billionaires (Forbes 2012) only 115 have signed the Giving Pledge. Why? Because of the phenomenal character of experiences such as philanthropy. Or in other words: “I’ve never tried it because I don’t like it” Phenomenal knowledge (or ‘what it’s like’ knowledge) = the knowledge of what it feels like to experience something can only be obtained by having that experience. “Experience is something you don’t get until just after you need it” (Steven Wright)

19. In conclusion: Major donors want their philanthropy to be: • Transformative – to achieve something tangible that wouldn’t otherwise have happened • Personally engaging – with both the causes and the organisations they support • Integrated into their personal and family lives • Enjoyable – they want their lives to be enriched as a result of giving.

20. Final word from the no. 1 on the 2013 Giving List “I have found that with money, the two happiest times are first when you are making it and second when you are giving it away.” David Kirch

21. Please feel free to contact me at • b.breeze@kent.ac.uk