-
""

Cause areas and approaches shaping modern philanthropy

26 February 2024

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

Philanthropists can face a daunting task when deciding which cause areas to support. This can be particularly challenging for those who feel passionately about multiple issues.

Here, we explore some common themes in philanthropy and the different approaches to giving, which have been adopted by various communities of donors. These may provide inspiration for donors as they continue to think through how to focus their giving.

Themes for giving

One way to focus your giving is to identify a theme or problem area.​​​​​​​​​​  

Some broad themes include:

  • Health
  • Education
  • Human rights 
  • Environment/climate 
  • Arts and heritage
  • Medical research
  • Poverty  
  • Elderly care.

The UN’s 17 Sustainable Development Goals (SDGs) are also popular themes for funding. Established in 2015, and intended to be achieved by 2030, the SDGs provide a ‘blueprint’ for peace and prosperity in the world1. They have been created with input by experts, practitioners and activists, using a rigorous global process.

By aligning your giving with the SDGs, you fund alongside other donors and governments, and in doing so help address some of the world’s most pressing challenges.

Source: United Nations Sustainable Development Goals, 2015

Underfunded and neglected causes

Another way to focus your giving could be to identify neglected areas.  

Paying attention to causes that appear overlooked or underfunded may provide an opportunity to add unique value. You may identify these as you begin to research your interest areas and speak to other funders or organisations working in these fields. 

Learning from other funders  

Existing communities of philanthropists can be a useful source of guidance, information and partnership. Some such communities even provide ideas for funding and can manage giving on your behalf. 

We provide three varied examples of such approaches below.  

Effective altruism 

Effective altruism, often known as EA, is both a research field and a community of donors who emphasise the use of data and algorithms to identify large-scale global issues.  

Examples of projects include the distribution of 200 million malaria nets, pandemic planning initiatives and academic research into artificial intelligence2.

The effective altruism approach may appeal to donors who are particularly motivated by rational thinking. However, some critics argue that effective altruism could potentially oversimplify complex issues or encourage shorter-term thinking. Others believe this approach may promote the funding of more easily measurable parts of a problem to the detriment of other equally worthy causes. 

Collective impact 

Collective impact is an approach that brings stakeholders together, sometimes from various sectors to address specific challenges. These stakeholders may include charities, businesses, philanthropists and governments. Many of these groups exist around certain themes, such as the environment or women and girls.

Joining forces could help donors to identify opportunities and gaps in funding, as well as to better understand the issues they seek to solve so they can leverage their resources strategically.  

It should be noted that collaboration requires compromise and relationships take time to build. For many donors, however, the sense of companionship, pooling of resources and joy of shared achievement is worth the additional effort.

Community foundations 

Community foundations are charitable entities that support a specific geographical area by fundraising for, and granting to, local organisations. They serve as a useful bridge between philanthropists and those working on the ground, addressing a range of needs including education, healthcare, arts and social services.

These entities could help to identify organisations that philanthropists may otherwise have never come across, while saving time on complex due diligence.

Coordination over competition

With so many charities or foundations working in certain cause areas, it can mean that organisations find themselves duplicating efforts or competing over limited resources.

One of the most effective ways to make an impact could be to consider how your efforts can benefit the broader sector, rather than individual charities or projects in isolation. You could, for example, give funding for organisations to pool resources and share learnings. Another option is to provide funding for better impact measurement or for advocacy and communications, which will help build a strong case for unlocking more funding or changing key policies.

Advanced concepts in modern philanthropy 

If you’re seeking transformative change, or as you begin to navigate real-world challenges, you may find yourself increasingly aware of the complexity of many societal problems. The reality is that many of the challenges that philanthropy seeks to address can only be solved in coordination with other sectors and by taking a big picture view. This requires a shift in mindset, from being a funder of individual projects or organisations, to understanding and participating in an ambitious programme of social change.  

In this section, we look at some advanced concepts for ambitious donors.

Tackling interconnected issues 

One potential difficulty when organising giving into themes is that it can create hard borders between issues. An example is funding health projects separately from education projects, without considering how health impacts a child’s ability to learn and attend school. There may, for example, be cultural factors in certain regions to consider, such as an expectation that girls stay home during menstruation.  

Ultimately, philanthropists can organise their giving beyond singular themes if it may provide opportunities for more meaningful change. A good starting point is to ensure you are well informed about the root causes of the issues you would like to help address. This way, you can understand whether a more open approach would help.

Framing issues  

Some donors choose to frame their giving through a lens. A lens is a priority issue that the donor has decided to address, often alongside others, after a period of research. A lens can help donors to view an issue across themes and sectors comprehensively.

Lenses allow donors to look critically at themselves, their operating models and approach, as well as the organisations they seek to fund and the wider issues at play. A donor may select organisations most aligned to their lens or seek to help organisations (or whole sectors) build better practices over time.  

Examples of lenses include:

  • Gender equity: Acknowledges that dominant cultural and historical attitudes, conceptions and behaviours have fuelled inequitable outcomes for women and girls. 
  • Climate: Recognises a complex interplay between climate change and issues such as economic activity, access to health, clean air and water, education, housing, food systems, democracy, indigenous knowledge and justice, and migration.
  • Restorative/reparative: Acknowledges that wealth may have derived from immoral or extractive practices and prioritises redistribution of power (including decision-making in philanthropy) and resources. 
  • Social and racial justice: Focuses on addressing the factors that perpetuate injustices, and shifting power to oppressed groups. As well as providing funding and resources, this approach can directly challenge the status quo. 

Systems change 

As we have seen, many challenges philanthropy seeks to address (such as poverty, the climate crisis and violence against women) affect whole cultures and societies – and thus involve multiple dimensions. 

As you build a picture of your chosen problem area(s), you may begin to see how influencing the wider system surrounding the issues could be key to lasting change. Systems can include beliefs, values, power structures, resources, institutions, laws and policies.

Changing systems can be the hardest, but arguably the most important, work for philanthropists. However, systems evolve over a long period of time, in response to actions from many participants. It can also be difficult to predict how a system might change or be influenced at any given moment. 

As such, donors need to be more open to risk, more flexible, more aware of potentially long time horizons and more intent on collaboration. 

If interested in systems change, it may be useful to recognise that a philanthropist’s job may not be to change the system directly, but to help create the conditions for change, enabling opportunities for partners (be they charities, government agencies or other organisations) to learn from each other and chart their own paths. The quality of your relationships will be as important as what you bring to the table when it comes to actually influencing change.

Putting this into practice 

Although these more advanced concepts can take time and research to understand, it is important to be aware of them if you would like to contribute to lasting change. While it is not possible to delve into detail within this Guide, ample resources and examples are available if you would like to learn more.

A solid starting point is to undertake a thorough analysis of the issues you are interested to tackle, identifying key players in the field and ensuring you understand the root causes. See our chapter Creating a philanthropy strategy to find out more about how to conduct a landscape analysis. 

If any of the above concepts appeal to you, we suggest you also find a community of social purpose organisations and donors who are already practising these approaches in a field that is of interest to you. What can you learn from them? 

The concept of intersectionality

When exploring how different issues affect communities, donors may find it useful to consider the concept of intersectionality. This recognises that every individual has multiple identities that may combine and contribute to a person’s experiences of discrimination. Examples include gender, sexuality, race, disability and class. 

The most vulnerable communities and individuals are often exposed to harsher realities during times of crisis. Understanding this may allow you to create a more informed giving strategy.

Guide  to Giving

Guide to Giving

Our 12-chapter ‘Guide to Giving’ features inspirational case studies and­ key concepts to help you navigate the world of modern philanthropy.

Disclaimer

This communication is general in nature and provided for information/educational purposes only. It does not take into account any specific investment objectives, the financial situation or particular needs of any particular person. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful for them to access.

This communication has been prepared by Barclays Private Bank (Barclays) and references to Barclays includes any entity within the Barclays group of companies.

This communication:

(I) is not research nor a product of the Barclays Research department. Any views expressed in these materials may differ from those of the Barclays Research department. All opinions and estimates are given as of the date of the materials and are subject to change. Barclays is not obliged to inform recipients of these materials of any change to such opinions or estimates;

(ii) is not an offer, an invitation or a recommendation to enter into any product or service and does not constitute a solicitation to buy or sell securities, investment advice or a personal recommendation;

(iii) is confidential and no part may be reproduced, distributed or transmitted without the prior written permission of Barclays; and

(iv) has not been reviewed or approved by any regulatory authority.

Any past or simulated past performance including back-testing, modelling or scenario analysis, or future projections contained in this communication is no indication as to future performance. No representation is made as to the accuracy of the assumptions made in this communication, or completeness of, any modelling, scenario analysis or back-testing. The value of any investment may also fluctuate as a result of market changes.

Where information in this communication has been obtained from third party sources, we believe those sources to be reliable but we do not guarantee the information’s accuracy and you should note that it may be incomplete or condensed.

Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation.