Reflections on 2024: The philanthropy perspective

Please note: This article does not constitute advice. Barclays Private Bank does not endorse any of the companies or individuals referenced in this article.

During 2024, our Philanthropy team has spoken to a diverse range of clients about their aspirations, concerns, approaches and questions around giving. Alongside this, we’ve held regular conversations with fellow advisers and philanthropy experts on the fast-evolving landscape and how the sector is (or is not) responding to these shifts.

Following the release of our Guide to Giving earlier this year, we consider some of the ongoing trends, themes and areas for reflection emerging from the past 12 months.

How can philanthropy be a uniting force? 

This summer’s riots in the UK, divisive elections around the world and the ongoing cost-of-living crisis brought many of our conversations to the topic of social cohesion, including the role of philanthropy in helping to bring people together.  

Even with the best of intentions, philanthropy does not always unite people as intended, for a number of reasons. Funding may be ill-informed, missing the big picture, place onerous demands on charities or not adequately consider what “bringing communities together” actually means.

This is potentially complex work – how do you address racism and mistrust within communities? How do you help change attitudes and behaviours linked to exacerbating factors such as poverty and deprivation? Clearly, these issues will not be solved by a single organisation or sector – and they take time to address.   

Listening to those on the ground

One of the most straightforward – but important – approaches in philanthropy is to understand local contexts, the nuances of root causes, and to make yourself as aware as possible.  

Grassroots organisations, local community foundations and broader social sector organisations often work in situ for years, if not decades, so it’s imperative to have their input before offering ideas. Working in humble partnership with those who have deeply rooted local insights is likely to be more impactful, not to mention much more rewarding. 

Once your understanding builds, you may notice particular gaps or critical levers – a policy change, a pocket of deprivation not receiving enough attention or funding, or an issue that needs greater evidence to unlock support.  

There is no one-size-fits-all solution, but philanthropy can be a powerful salve when partnership and solidarity are at the forefront.

The role of philanthropy in peacebuilding 

Sadly, much of the news from around the globe this year has been focused on continuing geopolitical tensions. 

We’ve previously written about the role of philanthropy in conflict and peacebuilding. There is clearly an immediate, humanitarian need for support through the provision of food, water and healthcare in many conflict zones. However, the case for longer-term support around rebuilding communities is equally pressing.

Beyond this, there is a deeper and more critical question: how can philanthropy help prevent conflict or escalations? This is a big topic and raises that age-old concern about who can, and should, wield power and influence in such situations. 

It’s important to understand the causes of conflict, generally and in specific contexts. Human rights violations, marginalisation or violence against particular communities, as well as corruption, poverty and climate change are all well-documented precursors of conflict¹, ². 

Supporting education around citizenship, democratic principles, stewardship, cultural awareness, conflict resolution and empathy contributes to harmonious relationships – and some charities and educational institutions are already doing important work in this area. 

Any infringements of human dignity and justice are also likely to give rise to conflict in time³. Surely supporting human dignity should be a critical function of philanthropy. It’s wise for any donor to consider how their funding (and their behaviours towards those that they fund) enhances or undermines this aspiration. 

Can AI help identify need?

Understanding the issues that require funding can be nuanced and time-consuming, but technological advances may provide efficiencies – albeit there remain a number of ‘unknowns’ with the much-hyped AI. For example, could AI’s ability to analyse vast datasets allow organisations to identify emerging issues, target the most pressing needs and allocate funds more effectively? 

Of course, doing so would depend on the existence of quality data to drive decision-making. Open-source data on grants and donations, through platforms such as 360 Giving, can help identify gaps in resources. 

However, data is often patchy in philanthropy, not least because some issues are difficult to measure and the funding of evidence has been lacking. Consider the prevention of domestic violence, dignity in elderly care, or the risk of human trafficking facing unregistered migrant children. 

The risks of emerging tech

Additionally, an over-reliance on data risks reducing the perceived importance of complex challenges that require long-term solutions. Although we intuitively know that these issues matter, we may not yet have the data to back up our position.

The risk of built-in biases is another significant concern as this can lead to unfair resource allocation or the exclusion of already-marginalised groups.  We must ask ourselves who designs AI tools. How representative are they of the needs of vulnerable communities versus those who have created this technology? Could philanthropy help address inherent biases – for example, by advocating for ethical standards, open-source datasets, and fostering collaboration between tech experts, ethicists and impacted communities? 

Nonetheless, there are promising upsides to this data-driven approach. One of the most time-consuming, and often least-enjoyed, responsibilities of running a foundation is governance. AI could help streamline these activities by generating financial reports and identifying inefficiencies. Automating these tasks could enable charitable foundations to direct more resources towards their mission, rather than operational costs. 

More and better philanthropy across generations

This year, we’ve been involved in three global next-gen education days and had many other conversations with younger donors and investors. With the much-discussed “wealth transfer” already underway⁴, it’s unsurprising that an upcoming generation is interested in the issues of their time, such as climate and social justice. Moreover, these younger donors are keen to innovate when it comes to how they use their wealth for good⁵.

How do we spark the motivation to give and be good stewards of wealth? And how do we empower younger generations to carve their own path if there is an already-established giving strategy, particularly if this initiative has been led by generations with different perspectives and priorities? 

Within our own work, education and inspirational stories are key. However, it is connection that often provides the most momentum. This may mean connecting new donors to others within a network so they can hear first-hand from philanthropists who’ve been on the journey.

It may also mean plugging them into collaborative groups such as Maverick, the Environmental Funders Network or similar next-gen oriented “giving circles”. Through these giving circles, philanthropists can share the practical and emotional load of finding opportunities, and processing what they’re experiencing, while also collating resources. 

Finding expert, specialised support, research and guidance is also key, be it through a dedicated strategic adviser, consultancy or think tank. No two donors are the same, and there is no single right approach, but philanthropy can feel overwhelming, psychologically and emotionally, for many. The right connections and support are essential in helping with this. 

Acting with curiosity, care and self-awareness

A final thought, which relates to all the above themes. While we talk about different ways of giving effectively and towards tangible results, it is important to recognise that philanthropy is not only about what’s “out there”, but also what’s going on inside. 

What are the lenses and biases through which we see the world? What beliefs do we hold about wealth and how we tie this to our identity? How might this affect whether and how much we give, our emotions and how we interact with others? Such insights are crucial, at every stage of life, because so much of effective giving is about how we relate to the world around us. 

What gives us hope is just how many in the philanthropy ecosystem – whether donors, advisers or charities – are engaging in these topics with curiosity, care and self-awareness. 

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