An exhibition on the history of philanthropy, perceptions of philanthropy, and how philanthropic practice works today.
What is philanthropy?
The word “philanthropy” is
derived from the Greek words ‘philos’ which means loving, and ‘anthropos’ which
means humankind. Therefore it can directly be defined as love of humankind.
Today, we usually refer to
philanthropy in relation to giving something in order to help others. We often
think about this in terms of money, but the giving can also include time and
skills or other resources.
The meaning of philanthropy is difficult to define because
it can mean different things to different people - including those who think of
it only as ‘big money giving’, and those who think of it as problematic – but
the most commonly cited definition in academic writing is:
“voluntary action for the public good”
(R. Payton & M. Moody, Understanding Philanthropy: Its Meaning and
Mission, 2008)
What is a philanthropist?
A person who practices philanthropy is called a
philanthropist. There is a tendency to think of philanthropists as people who
are very wealthy and give away large amounts of money, as opposed to those who
give smaller donations to charity.
Philanthropists are sometimes seen as innovative and
entrepreneurial, with a willingness to take risks and to look at long-term
solutions to problems.
However, if philanthropy is simply the process of giving
away money or resources for the benefit of others, then could many more of us
can be considered as philanthropists when we donate to a charitable cause?
Quotation
It is a shame that the word ‘philanthropist’ is only applied to the tiny number of very rich individuals making very big gifts. ‘Love of humankind’ is demonstrated by most people on most days, so we are all philanthropists!
Explore a brief overview of the history of philanthropy including how philanthropy has linked to religion, business, and the welfare state with Rhodri Davies, Pears Fellow in the Centre for Philanthropy at the University of Kent.
We take a look back at how philanthropy has been satirised in the past including mocking both the uncharitable and the 'do-gooders'. Rhodri Davies, Pears Fellow in the Centre for Philanthropy at the University of Kent, takes us on an amusing journey through the history of philanthropy and satire.
Throughout
the history of philanthropic practice there have been arguments about whether
philanthropy has an overall positive impact or a negative one?
In critique of philanthropy
In recent years philanthropy has received heavy
criticism in relation to wider questions of wealth inequality, the power that
accumulated wealth brings and the risks of this power being unfairly wielded.
Those who criticise philanthropy sometimes argue that ‘big’ philanthropy
actively undermines democracy and that philanthropists exercise undue power and
influence.
Critics also highlight how philanthropy can be ineffective and
wrongly directed, causing more harm than good. There has also been increased
focus on the origins of wealth creation and the ethics of giving this ‘tainted’
money away.
In defence of philanthropy
Those who defend philanthropy argue
that philanthropic support for the voluntary sector is vital and has an impact
beyond that which could be obtained through government or public funding.
Philanthropists can fill gaps in funding provision, be innovative and take more
risks than could be achieved with public funding, and can be flexible and quick
to react when funding is needed.
When philanthropists chose to give their money
away they usually approach this with a spirit of generosity and a desire to
make a positive change in the world – often led by personal experience of an
issue or problem.
History of Fundraising
Through the 17th century, one-off appeals or “charitable briefs” were issued in response to disasters.
These were often fires, which caused huge damage and loss of life. In 1666 a charitable brief was issued
following the Great Fire of London, raising over £16,000.
With the arrival of new forms of “associated philanthropy” from the
late 17th century we see the emergence of what we think of as
modern charities, leading to a period of growth and innovation in fundraising in the 18th and 19th centuries.
Click below to read Rhodri Davies' summary of fundraising history
A wide variety of structures
and systems are used by philanthropists to facilitate their giving.
Philanthropists select methods that meet their personal aims and to fit within
appropriate legal and financial frameworks.
Private
Philanthropy
Some philanthropists
do not wish to create an organisation by which to distribute their resources,
and do this privately.
Giving
Circles and Networks
Some philanthropists
prefer to work collaboratively with others as part of networks or giving
circles, where resources are pooled.
Trusts
and Foundations
Philanthropists often
establish a trust or foundation to facilitate and administer their
philanthropy.
Permanent Endowments
Some trusts are established with a permanent endowment. This means that the trust owns assets (land, property, cash or investments) that are meant to be held by the trust forever. The endowment has been gifted to the trust, is managed by a group of Trustees, and the trust uses the income earned from the endowment to support projects and organisations in accordance with their specific charitable purposes.
Other trusts have an endowment which is not designed to be permanent. This means that the trust has the ability to decide when to spend the endowed gift, and provides some flexibility to use the assets when needed.
Case Study: The Wolfson Foundation is an independent grant-making
charity established in 1955 by Sir Isaac Wolfson, his wife Edith, and their son
Leonard. Since 1955 the Wolfson Foundation has awarded over £1 billion to
projects in areas such as medical research, health, education, science and technology,
heritage, humanities and the arts.
The Wolfson Foundation has a commitment to long-term
philanthropy and believes the Wolfson’s perpetual endowment structure and
approach plays an important role in the wider philanthropic landscape. Sir Paul
Ramsbottom, the Chief Executive of the Wolfson Foundation, wrote about the advantages
of the long-term approach on the Wolfson Foundation blog.
Some trusts are established with an aim that they will
‘spend out’ their assets within a fixed timeframe. Sometimes this is a decision
that is made when the trust is established, while others may come to this
decision after a period of operating with a more long-term strategic overview.
Dame Stephanie Shirley always planned for her charitable
trust, The Shirley Foundation, to spend out after her death. However, shortly
after celebrating the 20th anniversary of the operation of the
Foundation, Dame Stephanie and the Trustees came to the decision to close it
down earlier than originally planned.
A further example of a trust that took the decision to spend out is The Tubney Charitable Trust, originally set up in 1997 by Miles and Briony Blackwell after Miles retired from the family publishing business. After the sudden and tragic death of the founders in 2001 the Trust decided to spend out in a ten-year period and support projects in areas of education, palliative care, the environment and animal welfare.
The Trustees explained the process and their experiences spending out in a publication "Giving our all: Reflections of a Spend Our Charity".
In a climate of increased public scrutiny of how
philanthropic organisations operate, many grant makers recognise that by
holding and distributing money they hold a great deal of power, and that the
relationship between the funder and the funded individual or organisation is
not equal.
Some philanthropists, trusts and foundations are looking at
ways of addressing this issue by changing how they make funding decisions,
considering how to make their organisations more diverse and inclusive, and by
exploring different funding models. New models and ways of working might include:
- Improved representation - ensuring that people with lived experience have a place on decision-making panels
- Participatory Grant Making - a model that devolves decision making to the people and communities who are impacted by funding decisions,
- Trust-based unrestricted grant giving - models where funding is given directly to individuals or organisations to enable them to decide how best to spend it on their activities or specialist areas
Thank you
We hope you enjoyed this virtual version of the Exploring Philanthropy exhibition. The exhibition was originally on display in the Templeman Gallery at the University of Kent from April to November 2022. With special thanks to Beth Astridge for curating the main exhibition, caption and panel writing, and Rhodri Davies for his research and writing contributions.
