While 'belt-tightening' has become an all too familiar term over the last 18 months, there are still many who continue extending their generosity despite the sombre environment. So can philanthropy be sustained in a recession, and where do the sensitivities lie? We look at why individuals and their families are increasingly keeping their philanthropic giving under the radar when times are tough and consider whether there is still an argument for public donations.
The Coutts Million Pound Donors Report, commissioned in the last two years by Coutts & Co and Kent University, shines its focus exclusively on UK charitable donations worth £1 million or more. As noted in the first report of 2008, some critics view anonymous giving as an attempt to evade accountability and others are concerned that it deprives society of much-needed role models that could inspire similar gifts from peers.
The study of recent trends in major giving has highlighted a rise in anonymous and low profile giving on both sides of the Atlantic. In the UK, we identified four anonymous gifts in 2007/08, up from two in 2006/07 plus a greater number of million pound donations were made in a low-profile manner without fanfare, if not in total secrecy. In the US, the Center on Philanthropy at Indiana University reports a tripling of such gifts*.
Desire for anonymity can be driven by honourable motives, including modesty and religious beliefs as well as a concern to avoid unwelcome attention, unsolicited appeals and personal danger resulting from attention being drawn to the existence of wealth. However, during a recession, donors may be inclined to give more quietly for three further reasons:
Despite these understandable motives for giving anonymously or in a low-profile fashion, there
are many good reasons for donors to consider 'going public' about their giving, including:
As Maya Prabhu, Head of UK Philanthropy at Coutts, notes,
"Many clients quietly express to us that they see family philanthropy as a key way to embody their core values and prepare their children to inherit. Sharing their experience will benefit others in a similar situation."
Martin Brooks, Chief Executive of New Philanthropy Capital, comments on the rise of lower-profile philanthropy and links it to wider public opinion about wealthy philanthropists:
"I think it is tempting to decry the wealthy as mean; ungrateful for their luck and good fortune (albeit frequently mixed with genuine talent).That is the wrong reaction. We need to celebrate those donors who do give generously, and even more so, those who are willing to talk about
this publicly. We need to encourage more wealthy donors, not pour scorn on them as some people do."
In most cases, publicising donations creates benefits for the charity sector, donors and their families that outweigh the perceived advantages of anonymous giving. It is therefore hoped that the incidence of anonymous and low profile giving will not increase in coming years, while
clearly recognising it is a matter of personal choice.
Whether UK philanthropy will continue to grow in an anonymous or public fashion, it is
reassuring to see that it is still very much alive and a great deal more resilient in the face of the economic crisis than many had expected. Beth Breeze, author of the Coutts Million Pound Donors Report concludes:
"It is heartening to see that major philanthropists have reacted to the economic crisis by ensuring that more funds are being spent on front-line charitable activity rather than being put away in charitable foundations to be spent at some point in the future. Whilst philanthropists often want to make provision for future generations, arguably contemporary needs outweigh future claims during this difficult period."
* 'Anonymous giving gains in popularity as the recession deepens', Chronicle of Philanthropy, 30/04/09
For more information, please contact Maya Prabhu , Head of UK Philanthropy,
on 020 7158 0789
VIEW THE FULL COUTTS MILLION POUND DONORS REPORT 2009 (420 mb)
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