Inside this issue: Shining a Light on Foundations Co-creation and Networking your Philanthropy: the Future Corporate Philanthropy? Magazine The Secret and the Not so Secret Philanthropist Universities in 2030: Their Future and Funding Issue 5: SPRING 2014 Future of Philanthropy: Blurred boundaries and networks drive innovation hilanthropy Impact makes sense of and Philanthropy Impact, launched in December 2013 following the incorporation of Philanthropy UK, the European Association for inspires of philanthropy across borders, Philanthropy and Giving (EAPG) and the Philanthropy Advisors sectors and caused. To match this mission we Forum. For more information see www.philanthropy-impact.org created an issues-based magazine covering Philanthropy Impact Pthe depth and breadth of the philanthropy spectrum. The Faraday House, 5th Floor 48-51 Old Gloucester Street response from you, our readers and contributors has been London WC1N 3AE overwhelmingly supportive. T +44 (0)20 7430 0601 [email protected] Editors have the luxury of a ‘birds eye view’, and for this www.philanthropy-impact.org our last issue (as Editors) we have chosen to reflect on the Sue Daniels, three key areas that we believe need more consideration Executive Director Executive Director and Editor in Chief: Sue Daniels The purpose of the magazine is to share information about and debate. and Editor in Chief philanthropy in a domestic and international context. We welcome @philanthropyimp articles, letters and other forms of contribution in Philanthropy First, the issues facing society, both global and Impact Magazine, and we reserve the right to amend them. local, are enormous and they are not going to be Please contact the Editor at [email protected] resolved by independent, or ad hoc and often top- ©2014 Philanthropy Impact. down interventions . Rather, they will only be resolved The views expressed in Philanthropy Impact magazine are not if all parties (governments and NGOs, corporates, necessarily those of Philanthropy Impact and readers should seek the guidance of a suitably qualified professional before philanthropists/philanthropies, beneficiaries and taking action or entering into any agreement in reliance upon the charities) work together, using the best tools available information contained in this publication. Whilst Philanthropy Impact has taken every care compiling this publication to ensure and sharing data and information. Transparency is the accuracy at the time of going to press, we do not accept liability or responsibility for errors or omissions therein however essential. Lester M Salamon; Robert Dufton; Noah caused. Philanthropy Impact does not endorse or approve any Isserman; Dr Rob John; Arnaud Mourot & Sarah advertisement and has no liability for any loss caused by the reliance on the content of any such advertisement. Jefferson; Kimberly Manno-Reott; Bathylle Missika; Michael Green, Guest Editor Philanthropy Impact is supported by its members, sponsors and the Etienne Eischenberg; Andrew Rogerson & Gideon Office of Civil Society in the Cabinet Office Rabinowitz; William Makower; and Bertrand Beghin & @shepleygreen Dominic Llewellyn all provide insights into the ways this can be achieved and issues that need to be addressed. Dr David Cannadine, sends a a rallying call for deeper engagement with the issues facing higher education, Design and Artwork by www.studiojohanson.com including how they are funded. Contents Second. Over the past year the phrase ‘corporate philanthropy’ has become more prominent. Does Shining a Light on Foundations – Accountability, Transparency and Self-regulation it really exist? In this issue Alice Korngold, Arnaud Robert Dufton 2 Mourot, Vanessa Friedman and Dr Catherine Walker The Secret Philanthropist: Homelessness 6 offer different perspectives on this vexing phrase: the The Revolution on the Frontiers of Philanthropy and Social Investment Lester M. Salamon 8 debate must be continued. Family Philanthropy: A Look at France Arthur Gautier 11 Finally, we need to not only understand why people The Great Seesaw of Civilization Zoltan J. Acs 15 give, so we can encourage more people to give, but also Impact Investing and Me. It’s Great to be Out and Proud Suzanne Biegel 19 to inspire those who do already give. Ian Marsh and If Not Now, When? 2014 BNP Paribas Individual Philanthropy Index: Measuring Suzanne Biegel offer different insights. the Commitment to Giving Around the World Kasia Moreno 23 Our regular features: The Secret Philanthropist; Ten A Co-Creation Approach to Social and Business Impact Today’s Approach is not the Things (you probably) Didn’t Know About Philanthropy Approach of Tomorrow Arnaud Mourot and Sarah Jefferson 25 in… and Most Tweeted present different views. Cause for Thought Vanessa Friedman 31 Don’t forget that, though I may be moving on, Real or Fake: Luxury Brand Corporate Philanthropy Catherine Walker 35 Philanthropy Impact Magazine would still love to hear Corporate Philanthropy: It is No Longer About Charity (Nor Should it Be) Alice Korngold 37 from you. Please email [email protected] Mixing Business and Social. What is a Social Enterprise and How Can We It has been an absolute delight working with Michael Recognise One? Andrew Rogerson and Gideon Rabinowitz 39 (all-round wise counsel) and our contributors, and my Innovating Times for Asian Philanthropy Rob John 42 time with Philanthropy Impact (and previously EAPG) Reflections on the 9th EVPA Conference Etienne Eichenberger 44 has been thoroughly enjoyable. We wish Philanthropy Impact and its Magazine a vibrant future. Venture Philanthropy for Development Bathylle Missika 46 So Why Do We Give to Charity? Ian Marsh 48 All very best When the State Gives: A Three-Sector “Mid-Atlantic” Model for Supporting the Sue Voluntary Sector Noah Isserman 51 The Squeeze and the Please William Makower 54 What Can philanthropists Do About Innovation? Bertrand Beghin and Dominic Llewellyn 56 Network Your Philanthropy Dynamic Relationships are the Future of Philanthropy Kimberly Manno Reott 58 Universities 2030: Their Future and Their Funding Sir David Nicholas Cannadine 61 Philanthropy Impact Magazine: 5 – SPRING 2014 1 of 66 Shining a light on foundations – accountability, transparency and self-regulation Shining a Light on Foundations – Accountability, Transparency and Self-Regulation by Robert Dufton The previous issue of Philanthropy uilding on these contributions, this article Impact Magazine (December 2013) focuses on foundations, institutions set up for public benefit which have their own funds. In included two articles which pointed practice most of these operate as grantmakers. to desirability of humility in BFleishman (and others) have highlighted the philanthropy. Russell Willis Taylor (USA) foundation sector’s lack of accountability and in “Giving, Not Getting”, reflected transparency. And there is a long history of criticism of foundations on these grounds. But an equally long on the downsides of people understanding of the unique quality of foundations lies Robert Dufton is a becoming involved in philanthropy in independence, both from Governments and the need Senior Fellow at the Centre to operate in ways which reflect popular opinion. for Charity Effectiveness mainly for personal brand building at Cass Business School, In the UK charities generally (particularly larger and/or those who bring market- where he researches charities by assets or income, which many foundations and teaches on grant- based values which are not always are), and foundations specifically, have since 2010 making and philanthropy. appropriate to achieve societal experienced unusual levels of interest from the Previously he was the Government or Parliament, including proposals (since Director of the Paul good. David Gold’s “Beware The Hamlyn Foundation, dropped) for limits on tax relief on major charitable one of the UK’s major Dark Side of Philanthropy” gave donations and a US-like mandatory pay-out by independent grant- practical advice for individual foundations. The UK International Development Select making foundations. He is Chairman of the National philanthropists on how to avoid Committee has reported on “Private Foundations”. Their use of the word “private” is significant - charities Funding Scheme, a new many unhelpful practices. charity promoting digital in the UK aren’t normally described as private and philanthropy in the arts. UK foundations are nearly all registered charities – so the description arguably reflects ignorance or worse a perception within Parliament about the nature of foundations. Another theme is to question the spending by charities which is not focussed on the delivery of so-called “front-line services”. Many foundations explicitly adopt strategic approaches, not prioritising supporting current needs but instead funding innovation or preventative work. The UK Government’s announcement in 2010 of its “reforms” of the national lottery, included capping the spending on administration and communication by national lottery distributors. The Government explicitly justified this based on its own research into the supposed “best practice” of selected independent grant-making foundations. (The research was however flawed as the Government did not appear to understand that most of the foundations analysed invest - and spend - on Philanthropy Impact Magazine: 5 – SPRING 2014 2 of 66 Shining a light on foundations – accountability, transparency and self-regulation many, significant foundations, whose public