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Philanthropy – the North East Story

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Philanthropy – the North East Story ISSN 2632-3486 DOI 10.6084/m9.figshare.7791287 Working Paper 2019-02 Philanthropy – The North East Story Charles Harvey1, Mairi Maclean2, Michael Price1 and Vesela Harizanova1 Centre for Research on Entrepreneurship, Wealth and Philanthropy Newcastle University Business School Newcastle upon Tyne, NE1 4SE, UK All rights reserved. Parts of this paper may be quoted provided that full acknowledgement is given. REWP website: https://www.ncl.ac.uk/rewp/ 1 Newcastle University Business School 2 University of Bath School of Management Philanthropy – The North East Story Charles Harvey, Mairi Maclean, Michael Price and Vesela Harizanova Abstract This paper surveys the history of philanthropy in the North East of England over a period of more than 900 years, from the time the North East was brought under Norman control (thirty years or so after the Conquest of 1066) down to the present. We paint a broad picture of the role philanthropy has played in the region across the ages, and demonstrate how past endeavours continue to enrich present lives. On the basis of the evidence presented we draw 10 main conclusions: (1) The North East has a long and rich history of philanthropy; (2) There are distinctive aspects to philanthropy in the North East stemming from the concentration of power in the hands of the Bishops of Durham and the merchant community of Newcastle; (3) Enterprise is the motor force of philanthropy; (4) Philanthropy is a major source of social innovation; (5) Social activism is essential to the success of philanthropic ventures; (6) Philanthropy is not just about mega-donors. (7) Prestigious institutions are magnets for philanthropy; (8) Institutions founded on philanthropy must adapt to survive; (9) Philanthropy is a two-way street: improving the lives of beneficiaries while a source of intense satisfaction for donors; (10) Philanthropy in the past lives on in the present. We conclude by answering four fundamental questions about the past, present and future of philanthropy, and present a summary table highlighting the main domains of philanthropy across the more than nine centuries. Keywords Philanthropy, North East England, Economy, Society, Social Innovation Charles Harvey, Mairi Maclean, Michael Price and Vesela Harizanova 1 Contents Introduction ............................................................................................................................................ 3 What counts as philanthropy? ................................................................................................................ 3 Researching the history of philanthropy in the North East .................................................................... 4 Four Philanthropy Eras ............................................................................................................................ 6 I. North East Philanthropy in the Middle Ages (1100 – 1500) ............................................................ 6 Context ............................................................................................................................................ 6 Philanthropy .................................................................................................................................... 6 II. North East Philanthropy in the Early Modern Era (1501 – 1750) ................................................... 7 Context ............................................................................................................................................ 7 Philanthropy .................................................................................................................................... 8 III. North East Philanthropy in the Modern Era (1751 – 1950) ........................................................... 9 Context ............................................................................................................................................ 9 Philanthropy .................................................................................................................................. 10 IV. North East Philanthropy in the Contemporary Era (1950 – present) .......................................... 16 Context .......................................................................................................................................... 16 Philanthropy .................................................................................................................................. 17 Top 10 Main Research Findings ............................................................................................................ 19 Conclusion: Philanthropy – Past, Present and Future .......................................................................... 22 What is the meaning and worth of philanthropy? ........................................................................... 22 What, at different times, has philanthropy regarded as its proper task? ........................................ 22 To what degree to date has philanthropy satisfied its intentions? .................................................. 24 What, based on our understanding of the past, is the future of philanthropy? .............................. 24 References ............................................................................................................................................ 25 Charles Harvey, Mairi Maclean, Michael Price and Vesela Harizanova 2 Introduction There is a small but rich and informative literature on the history of philanthropy in Britain, but very little specifically on philanthropy in the North East of England (Button & Sheets- Nguyen, 2014; Ben-Amos, 2008; Gray, 1905, 1908; Jordan, 1959; Owen, 1965; Prochaska, 1980, 1988, 1990). Our research is intended to help remedy the situation by surveying the history of philanthropy in the region over a period of more than 900 years, from the time the North East was brought under Norman control – thirty years or so after the Conquest of 1066 – down to the present. Our purpose is not to provide a detailed chronological account of philanthropic initiatives nor an in-depth exploration of specific themes, but rather to paint a broad, suggestive picture, supported by the available evidence, in order to draw significant conclusions and lessons for the present. This article is intended for readers who want to read the headlines and conclusions of our research without ploughing through the detailed histories on which they are based. In turn, we provide a brief explanation of what counts as philanthropy and what is excluded; short overviews of each of the four eras of philanthropy in North East England; the top ten findings emerging from our research; and a general conclusion reflecting on the past, present and future of philanthropy. What counts as philanthropy? We define philanthropy as voluntary giving by private individuals, couples, families or corporate bodies to promote charitable causes, projects or organizations; what Payton and Moody (2008: 28) express more succinctly as “voluntary action for the public good.” The key criteria are voluntary and public good, thus excluding projects, initiatives and services provided by governments and financed by taxation, which is compulsory, enforced by authority with the backing of the law. Support provided by individuals for households or extended families may often be generous but is never philanthropic because it is for private not public benefit. It follows that acts of philanthropy only occur: a. when the person making a gift is not compelled to do so; b. when the gift benefits people with whom the giver is not directly connected (excluding relatives, friends and employees); c. the gift is made from the giver’s personal resources, not resources controlled by them but owned by others; d. the giver does not receive a material benefit in return for the gift. Applying these criteria strictly is important because it limits the tendency to exaggerate the extent of philanthropy or to mistakenly believe that an action is philanthropic when in fact it is not. It is a common mistake, for example, to regard the apparent generosity of paternalistic business leaders in providing housing and welfare benefits for employees as philanthropic (Finlayson, 1992: 45-63). Such acts may indeed be enlightened, but they do not qualify as philanthropic because they fail to satisfy conditions (b) and (d), and, when the gift is made by a manager who is not the owner, condition (c) also. For similar reasons, it is mistaken to regard politicians spending public funds or chief executives of private or third sector organizations Charles Harvey, Mairi Maclean, Michael Price and Vesela Harizanova 3 sanctioning charitable gifts as acts of philanthropy. They are not, primarily because they fail to satisfy condition (c). The objective criteria applied in determining whether a gift may legitimately be classified as philanthropic have no bearing on judgements relating to the magnitude, form or intrinsic worth of philanthropic gifts. This is because these matters are subjective and depend crucially on value judgements. It is not possible, for example, to justify imposing an arbitrary minimum value before a gift is classified as philanthropic. People who make a donation of dried or canned goods to a foodbank are behaving in the same philanthropic spirit as those who endow a scholarship for disadvantaged children attending university. The particular form taken by a gift likewise is value neutral. Gifts of money
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