F The Bill and Melinda Gates Foundation currently provides the ABOUT THE EDITOR ami most concerted challenge to government approaches to tackling Cathy Pharoah is Professor of Charity Family problems of global health. At the same time, the foundation set Funding and Co‑Director of the ESRC F LY Research Centre for Charitable Giving up by business billionaire Hans‑Werner Hector made, in 2008, and Philanthropy, Cass Business oundation Foundation the largest single donation ever to a German state university, School, London causing national controversy over the status of so‑called ‘elite universities’. In the light of these and other strategic initiatives, Philanthropy the influential role of family foundation philanthropy in social CONTRIBUTORS policy and practice has never been more topical. P Deborah Bolognesi hi 2009 Family Foundation Philanthropy 2009 updates and compares trends Thomas Ebermann L in the charitable spending of major family foundations in the UK and anthrop Giuliana Gemelli US. It also presents new data on family foundations in two contrasting UK, Germany, Charles Keidan continental European countries, Germany and Italy. The historical, legal and political contexts in which such foundations operate in these Henrik Neuke Italy, US countries are shown to be significantly different, yet in spite of these Cathy Pharoah Y 2009 differences philanthropy of this kind has constantly found ways to Susan Crites Price re‑emerge and reconfigure itself. Rupert Strachwitz Cathy Pharoah The research presented here demonstrates the strength of family foundation philanthropy and the extent to which it has become a vehicle for successful entrepreneurs and other donors not only to support, but often to strategically influence, the scientific, cultural, social and economic progress of their time. The study also raises questions about the common themes and overarching motivations which give family foundation philanthropy a continuing role under sometimes difficult conditions and in different times, contexts and places. WWW.ALLIANCEMAGAZINE.ORg ISBN 978 0 9558804 4 5 Family Foundation Philanthropy 2009 UK, Germany, Italy, US Cathy Pharoah Author and editor with Charles Keidan editorial adviser Rupert Strachwitz Thomas Ebermann Henrik Neuke Giuliana Gemelli Deborah Bolognesi Susan Crites Price Published by Alliance Publishing Trust Copyright © 2009 ESRC Research Centre for Charitable Giving and Philanthropy, Cass Business School All rights reserved. ISBN 978 0 9558804 4 5 Alliance Publishing Trust 1st Floor, 25 Corsham Street London N1 6DR UK [email protected] www.alliancemagazine.org Registered charity number: 1116744 Company registration number: 5935154 A catalogue record for this book is available from the British Library. Typeset in Grotesque MT Design by Benedict Richards Printed and bound by Hobbs the Printers, Totton, Hampshire, UK This book is printed on FSC approved paper. Cert no. SA-COC-1530 Cert no. XXX-XXX-000 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Contents List of tables 4 Foreword 5 Acknowledgements 7 The authors 7 Executive summary 9 1 Introduction 11 2 Overview of trends in family foundation charitable spending 15 3 Family foundations in the UK 22 4 Family foundations in Germany 29 5 Family foundations in Italy 38 6 Family foundations in the US 47 7 Highlights of country overviews of family foundations 54 Appendix 1: Scale and scope of family foundations today 57 Appendix 2: Note on research specification 58 4 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: List of tables 1 Largest five family foundations by country 16 2 Trends in the charitable spending of the largest 100 family foundations in the UK and US 17 3 Average charitable spending in the UK and US excluding Wellcome Trust and Gates Foundation 18 4 Comparison of charitable spending in the largest family foundations in the UK, Germany, Italy and US 18 5 Average family foundation spending in the UK, Germany, Italy and US 19 6 Charitable spending as a proportion of Gross Domestic Product 20 7 Total assets of the largest family foundations in the UK, Germany, Italy and US 20 8 Gross Domestic Product per capita in the UK, Germany, Italy and US 21 9 Charitable spending of the largest 100 UK family foundations 26 10 Charitable spending of the largest 100 German family foundations 36 11 Family foundation charitable spending in Italy 44 12 Giving of the largest 100 US family foundations 52 5 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Foreword Family foundations have long been an important part of the third sector, but this is only the second time there has been a comparative study of them. This research is based on the largest family foundations in the UK and US, and two contrasting European states: Italy and Germany. As ever, a few very large gifts inflate the figures. National differences reflect the various historical, legal and political contexts. International similarities underline the vigour of the concept and the ability of family foundations to reinvent themselves. My own foundation is typical in its aims for both technological progress and social reform. It was originally my naive channel to depersonalize and professionalize my giving. Since giving is now what I do, the Shirley Foundation has become an important part of my life and prime beneficiary of my will, so connecting me to the future. Looking back to my business years, one important lesson was to focus; it is focus that gives each corporate and each family foundation its strategic impact. I also learned early on to maintain an organization’s unique selling proposition by using metrics in order to continually compare performance with that of other organizations. As the newly appointed Giving and Philanthropy Ambassador in the UK, my aims include having giving become something for everyone, a vibrant part of everyday life. I shall be meeting with key stakeholders, such as the financial advisers to potentially major donors, and I intend to use mass technology to reach young people in a way that appeals to them. And I will be recruiting emissaries to work with me to foster and promote different aspects of philanthropy. Family foundations will certainly be among them. Dame Stephanie Shirley 7 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Acknowledgements We would like to acknowledge the contribution of several people and organizations whose help allowed this project to be carried out. The project developed from the initial vision of the Pears Foundation, who provided funding and have been partners in the research. We would also like to thank Dr Jeff Solomon, President, Andrea and Charles Bronfman Philanthropies (ACBP), for further foundation support. We are very grateful to Gerry Salole and Triona Keaveney of the European Foundation Centre for their advice and for providing reference material. Richard Fries (former Chief Charity Commissioner) also kindly provided source material. All reasonable care has been taken to ensure the accuracy of the publication at the time of going to press. The publishers cannot accept responsibility for any errors or omissions. The authors Cathy Pharoah is Professor of Charity Funding and Co‑Director of the ESRC Research Centre for Charitable Giving and Philanthropy, Cass Business School, London Charles Keidan is Director of the Pears Foundation, a family foundation based in London Rupert Strachwitz is Director of the Maecenata Institute for Philanthropy and Civil Society at Humboldt University, Berlin Thomas Ebermann is Project Manager in the Maecenata Institute for Philanthropy and Civil Society at Humboldt University, Berlin Henrik Neuke is Research Assistant in the Maecenata Institute for Philanthropy and Civil Society at Humboldt University, Berlin Giuliana Gemelli is Professor of Contemporary History in the Department of History, and Director of PHaSI, research centre on Philanthropy and Social Innovation, which organizes the Master in International Studies in Philanthropy and Social Entrepreneurs, University of Bologna Deborah Bolognesi is Research Officer in PHaSI, research centre on Philanthropy and Social Innovation, University of Bologna Susan Crites Price is Vice President of the National Center for Family Philanthropy, US 9 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Executive summary Family Foundation Philanthropy 2009 updates and compares trends in the charitable spending of major family foundations in the UK and US. It also presents new data on family foundations in two contrasting continental European countries, Germany and Italy, both of which have long, though very different, traditions of family foundation philanthropy. These countries lack the same level of published financial information as the UK and US, because reporting is not mandatory. But while full comparisons were not possible, the data gathered is sufficient to show the strong presence of family foundations in the philanthropy of the UK, Germany, Italy and the US. The research focused mainly on the largest 100 charitable family foundations in each of the four