While philanthropic budgets are dwarfed by those of governments, donors have more than money at their disposal.
Philanthropy can support a range of issues, innovate, provide long-term support, incubate ideas and organisations, and de-risk programmes for others.
It can also gather data about areas of need as well as support social movements, and can positively influence the behaviour and policies of individuals, markets and governments. In some cases, philanthropy can be a powerful tool to hold key figures and organisations to account for their actions.
Here, we lay out the various ways you could focus your giving and the implications of different approaches.
Deciding where and how to focus
For some, the area of focus may be obvious due to a long-held passion, personal experience or deeply held set of values or concern about a societal problem. For others, it will involve a complex set of choices.
Effective giving combines a spirit of enquiry with careful consideration of the social, political, economic and environmental factors that underpin the challenges you are seeking to address. It can therefore be useful to do some research and speak to more experienced donors in the early days.
It is also helpful to seek insights from a range of sources as you build a picture of your chosen cause area. This may include expert opinion, academic research and practical knowledge (from donors, as well as – crucially – the experience of communities closest to the issues).
Getting started as an early donor
If you are new to philanthropy, deciding on a focus for your giving will likely be one of your key considerations.
As such, you might want to reflect on the following:
- Focus on discovery, not solving. Consider your blind spots and seek information from a range of sources, including those directly impacted by an issue.
- Make a small cluster of initial gifts that will introduce you to great leaders, the communities you would like to serve and the issues you want to understand.
- Plug into existing networks of experts and/or experienced funders who can share intelligence and insights, and perhaps recommend organisations to support.
If others are already working on an issue, consider whether you can amplify their efforts – this will enable you to leverage their experience while learning as you go.
As Professor Beth Breeze, Director of the Centre for Philanthropy at the University of Kent, says: “If you have little or no experience of the non-profit sector, you may also reap significant benefits from visits to see charities in action.”
Remember, however, that asking for meetings to learn from charities is time consuming for them, and not always mutually beneficial for resource-strapped organisations. Consider paying for their time or making an unrestricted gift.
Going beyond your lived experience
“Philanthropists want, and need, more context than their lived experience and what they have seen in the media,” offers Professor Breeze. “As anybody who has been to school or university knows, it can be humbling to find out the true extent of what we do not know.”
If you need help defining a focus, you could consider these five areas:
- People: Who are the groups or communities you would like to benefit?
- Places: Do you see yourself influencing change locally, nationally or globally?
- Problems: Will you focus on big challenges of our time, such as one of the United Nations’ Sustainable Development Goals? Or do you have a discrete issue in mind from which you can broaden your giving?
- Philosophies: What beliefs do you hold about how the world works or should work? Can you test your hypothesis? What assumptions might you be making?
- Pathways: What approaches do you believe are important? Some examples include the power of technology, education and enterprise.
Taking the time to articulate your evolving perspectives to family, staff members and/or trusted advisers, can also be worthwhile. This process will help you to clarify your story, think through ongoing questions and ensure understanding across your team.
As you set out, remember that you’re on a learning journey so you don’t need to have all the answers – rather it may be more helpful to keep asking the right questions, even as you develop experience as a donor. As Professor Breeze comments: “Regardless of your experience, the donor journey does not end with a final destination because new needs and different ways of addressing these, will constantly arise.”
