Richer Lives is a presentation about why wealthy individuals engage in philanthropy. It discusses trends in philanthropy including more strategic and engaged "new philanthropists" and new forms of giving like venture philanthropy. Donors are motivated to give because it enriches their lives and they want to catalyze change. While fundraising has improved, charities need to be better at asking for donations and showing how funds will make a tangible impact. Overall, philanthropy provides meaning to donors' lives and opportunities to support dreams and ideas can inspire major gifts.

1. Richer
Lives:
why rich
people give
Presented by Theresa Lloyd
Curated by Chapel & York Limited

2. What we’ll look at today
• The changing nature of philanthropy – in the UK and
elsewhere
• Characteristics of “new” philanthropists
• A review of motivations
• Giving to a specific cause
• How requests are filtered
• What donors think of fundraisers
• What is a major gift
• Implications and recommendations

3. Which Rich - the data set
• over 80 wealthy UK donors, divided equally between a
cohort who were first interviewed by Theresa Lloyd in 2002,
for Why Rich People Give (“established”), and a set of
younger donors, some relatively new to philanthropy
(“emerging”).
• 12 philanthropy advisers
• 16 fundraisers and other experts.

4. Changes in the UK Philanthropy
scene
We identify 6 main themes
• Growth in giving by the rich, in a context of increasing wealth
disparity
• The development of the UK philanthropy infrastructure,
including the provision of advice and the development of
philanthropy
as an academic study
• The growing government interest and investment in
encouraging charitable giving, including matched funding
initiatives, and wider sector initiatives to promote and recognise
philanthropy
• The development of new ways of philanthropic engagement,
including venture philanthropy and various forms of social
investment
• The transformations triggered by technology
• The rise of ‘enrichment’ as a key driver of philanthropic activity,
including The Giving Pledge.

5. More trends
We also note
• Shift in source of wealth
• Increase in overall wealth levels
• Global inter-generational transfer of wealth
• An increasingly educated donor constituency, with high
expectation

6. A changing marketplace
• A number of people developing new models and products
• New sources of information
• Increasing interest in measuring the impact of donor intervention
• Untapped market of wealthier people
• Increasing interest in donor education
• Role models who are willing to stand up and be counted
• Improving research base
• Developments in the tax regime, particularly for higher net worth
individuals
• Wealth managers and advisers seeing philanthropy advice as an
opportunity to add value to their service, and more people
seeking advice

7. Philanthropy matters more to
donors and society
80% - personal commitment to philanthropy has increased
78% - profile of philanthropy in the UK has improved
67% - public opinion is more positive
55% - political climate is more conducive to encouraging
philanthropy
.

8. Key messages about donors
• Philanthropy is a very important aspect of the lives of both
younger and older donors
• Donors give because it enriches their lives
• Philanthropists change they way they give over time
• The end of the armchair philanthropist
• Fundraising is improving but there is no room for complacency
and it needs the input of donors as askers

9. What is different about new
philanthropists?
• Level of wealth
• Attitudes
– Entrepreneurial and risk taking
– More strategic and engaged
– Interest in impact, accountability and transparency
– Leverage and collaboration

10. New ways of supporting
charities
• New types of financing
• Targeting gaps in current services
• Venture philanthropy
• The rise of the social investor

11. Venture philanthropy
• High engagement
• Tailored financing
• Multi-year support
• Non-financial support
• Organisational capacity-building
• Performance measurement
• http://evpa.eu.com

12. Social investment
• Use of capital to generate social as well as financial returns
• Vision for its use
• Sits in an investment portfolio between philanthropy and
commercial investments
• Critical component of a commitment to impact investment

13. Types of social investment
products
• Social impact bonds
• Performance related investments
• Directly into social enterprises or
• Indirectly into intermediary funds

14. What has this to do with me?
• This is the marketplace in which philanthropists and those seeking
their engagement are operating!
• Donors have a choice of causes and a choice of investment models
• Donors like the concept because
– They believe it incentivises impact
– It provides a return which they can reinvest
– It provides a hand-up rather than a hand-out

15. What makes a donor?
• Values
• Motivations

16. Influences on values
• Faith
• Family and community
• The immigrant experience

17. Why do rich people give?
• Because they believe in the cause
• Because they want to be a catalyst for change
• Because philanthropy helps them to
develop as a person
• Because they feel a duty and responsibility to share their wealth
• Because they enjoy the relationships that develop with the
charity leadership, with fellow donors and with the beneficiaries

18. Also...
• Because they believe philanthropy is the right use of surplus
money.
• Because they are clear about the complementary roles of
government and philanthropy.
• Because they believe philanthropy is a good parenting tool.
• Because they appreciate appropriate recognition
• Because they get joy out of giving.

19. Giving to specific causes
• They have an existing interest in the issues or the cause
• They are confident that their money really will
– be spent effectively, by a well-managed organisation that has a robust
business plan and a culture of accountability and transparency
– make a real difference to/have an impact on the lives of people about
whom they care, and be of public benefit
• also (in 2012/13)
• It fits in with their predetermined giving objectives
“I conduct research trips to seek out funding opportunities – approaching
charities that are of interest. If the meetings go well I will ask the charities to
submit proposals”.

20. So what else matters when they
decide what requests to consider?
• if asked by an existing donor who is someone they know
and respect

21. How do they filter requests?
- I really feel my money will make a difference
- I am already interested in the cause
- It fits in well with my pre-determined giving aims
- I am asked by someone I know and respect
- I like the approach made by the fundraiser
74%
74%
73%
69%
31%

22. Other factors?
• Taking time to develop the relationship
• Matched funding – more of an incentive than the tax break
• Giving collaboratively

23. Most satisfying donations
• Support of individuals – making a difference to individual
lives
• Making something happen (that wouldn’t otherwise have
happened)
• Effective relationship management
• Support of local community, or other community with
whom have strong affinity

24. Why people don’t give
• A lack of understanding of the real level of wealth, coupled with
feelings of insecurity
• Absence of a tradition or expectation that they would give
• Uncertainty about the level at which to give
• Not being asked effectively
• Lack of peer pressure, or pressure from someone they wish to
impress

25. Some more reasons why
people don’t give
• Fear of donations being mishandled, or not spent effectively
• Living in a social cocoon
• Have not seen or experienced a cause or issue about which they
care passionately
• Have not seen how they could make a difference
• Haven’t experienced the buzz and fun of giving
• Perceived complexity
• Lack of time to devote to the issue

26. But what about fundraisers?
• Fundraisers are seen to have become more professional in their
approach
– better research before donors are approached
– better understanding of how donors wish to engage with
causes.
• But not so good at
– explaining tax breaks
– offering appropriate recognition

27. Some important questions
• Does the approach of the fundraiser matter?
• What kind of relationship do donors expect and whom do they
expect to deal with?
• How do you and your organisation define a major donor?
How do donors see it?
• Being alert to reciprocity!
• Getting it wrong

28. Implications
• The role of peer ambassadors is hugely important
It will then be up to the charity to
• persuade the prospect that the cause is consistent with their own
values and predetermined objectives, and
• to be able to show how donor investment will be effectively spent
and make a real difference to the lives of people about whom they
care, and
• make the experience as rewarding and enriching as possible so
that that they want to repeat it!

29. What does this mean for
charities
I think people respond really well when you’ve got
a really crystal clear idea and you’ve really defined
what the proposition is and they can see clearly where
the money will go and what it will achieve.
I think the more precise you can be, and the more
you can engage people emotionally in whatever
it is you want them to give the money to, and
they can see the professionalism in how the money
will be spent, I think those are things that really get
people willing to say yes
An experienced donor-asker
“
”

30. Recommendations
1) Charities must become far better at asking.
2) Experiences of serious giving must be positive and
reinforcing.
3) Integrate legacy promotion with other forms of
relationship development.
4) Consider matched funding schemes.
5) Charities must address the lack of confidence in their
competence and efficiency.

31. Being philanthropic enriches
the lives of donors
“Philanthropy makes you feel good, and I don’t mean
goody-goody two shoes, righteously good, but it just makes you
feel good inside. You get a buzz.”
“I do it because it’s such fun, it’s selfish, I get such enjoyment.
I am privileged to be able to do it.”
“Giving and running my trust has taken the role in my life that
was previously occupied by my job. I hope it gives meaning to
my life for the next 20 years or so.”
“Seeing these projects develop and bring major benefits to
people has been a life-enhancing experience”
“It’s a really high privilege… It moves me to tears, it lifts the
spirits”

32. Some UK-based sources of
information
Newspapers and regular publications
• Financial Times
• Economist
• Spears wealth management magazine: http://www.spearswms.com/
• Local papers
• http://www.alliancemagazine.org/
Websites/newsletters/articles
• New Philanthropy Capital: http://www.thinknpc.org/
• Philanthropy Impact: http://www.philanthropy-impact.org/
Merger of EAPG, PUK and Phil Adviser Forum, in particular:
http://www.philanthropy-impact.org/expert-opinion/philanthropic-
fundraisingwhat-can-we-learn-wealthy-donors
• Institute for Philanthropy: http://www.instituteforphilanthropy.org/
and
• All “competitors” for the investment

33. More sources of information
Research
• Million Pound Donor reports:
http://www.kent.ac.uk/sspssr/cphsj/research/couttsmilliondonor.html
• Factary research http://factary.com/
Government funded reports
• http://www.hefce.ac.uk/pubs/rereports/year/2012/philanthropyreview/
On venture philanthropy and social investment
• http://evpa.eu.com
• http://www.cityoflondon.gov.uk/business/supporting-local-
communities/Documents/a-brief-handbook-on-social-investment.pdf
Books
• Richer Lives www.richerlives.org
• Why Rich People Give
• Giving is Good for You – John Nickson

34. Your opportunity – turning dreams into
reality
“Giving is a way of life, it is part of the reason I think I exist. The
likelihood of an increase [in my giving] is not a function of how much
I have. I will give more if the projects that I believe in are present or
a good opportunity exists”.
An interviewee for Richer lives
“There is no such thing as a shortage of major donors. There is only a
shortage of great ideas to raise money. A desperate need for visions
and dreams… Mega givers are captivated by the opportunity, the
challenge, the magic of being able to do something special”
Jerold Panas (1984) Mega Gifts: Who gives them, who gets them?
“A dream doesn't become reality through magic; it takes sweat,
determination and hard work.”
Colin Powell

35. Thank you!
• For participating
• For reading the book
• For helping to build a stronger culture of philanthropy in
the UK and elsewhere

36. Contact information
For more information go to http://www.richerlives.org/
To order go to www.dsc.org.uk/rl
Theresa Lloyd
The Philanthropy Advisory Service
London office: +44 (0) 20 7569 8740
Bath office: +44 (0) 1225 321850
Mobile: +44 7740 512456
Skype: theresaslloyd
theresa@theresalloyd.co.uk
www.theresalloyd.co.uk
Dr Beth Breeze
Director, Centre for Philanthropy
School of Social Policy, Sociology and Social Research
University of Kent
Canterbury CT2 7NF
01227 824 303
07932 745 989
b.breeze@kent.ac.uk
www.kent.ac.uk/sspssr/cphsj
Blogging at https://blogs.kent.ac.uk/philanthropy/
Tweeting @UKCPhilanthropy