Giving In?
Jamie Oliver assesses how the disturbances in international finance might impact on the charity sector this season “NOTHING CHANGES.” That’s the abrupt response from The Bill & Melinda Gates Foundation. Mind you, with the two wealthiest men in the world – Mr Gates and US investment tycoon Warren Buffet – acting as your main benefactors, [...]
Jamie Oliver assesses how the disturbances in international finance might impact on the charity sector this season
alt="Charity shops are likely to become more common as they move into vacant shop premises">
“NOTHING CHANGES.” That’s the abrupt response from The Bill & Melinda Gates Foundation. Mind you, with the two wealthiest men in the world – Mr Gates
and US investment tycoon Warren Buffet – acting as your main benefactors, it’s not entirely surprising that, despite economic difficulties, the good work will go on. With
revenues of US$35.9 billion (£22.8bn), the foundation can continue to reduce extreme poverty around the world.
For lesser charities, reliant on a variety of incomes, it’s unclear how the global financial situation will affect their coffers. The last few years have seen a surge in funds
donated to charities in the UK. An incredible £10.9 billion was given in 2005/06, driven by donations to international disasters. Two-thirds of the population donate up to
£5 in a typical month and the most popular individual charities are Cancer Research UK, The National Trust, Oxfam and Royal National Lifeboat Institution (RNLI).
But will donations to these and others like them be hit by the credit crunch, or is it more likely to strike the wealthy philanthropists? Wealthy donors generally favour
different causes than poorer donors – the rich give largely to arts and culture and social welfare organisations, while more modest contributors prefer to give to
international aid and animal welfare charities. So with oligarchs reportedly haemorrhaging billions on the world’s stock markets, will it have an impact?
alt="Bill Gates and his wife Melinda have pledged to give most of their wealth to their charitable foundation">
Scottish businessman Sir Tom Farmer is a recipient of the equivalent of a Nobel Prize in philanthropy, the Carnegie Medal. He says philanthropy isn’t all about the money
anyway. It’s as much about giving your time and efforts to help your fellow man. “Look at Mother Teresa,” he says. “She was a philanthropist.” He says one thing is for
sure – that charities themselves need to work more effectively and save money where they can.
Another man who gives his money to charity is a Canadian-born art dealer now living in the UK, Fred Mulder. In December 2007, he sold an impression of Picasso’s
to charity. He also runs The Funding Network, an organisation that brings together people who want to give money and charities looking for funds. He has not seen a
decline in charitable giving, but thinks that if the difficult economic situation continues it is bound to have an impact. “My hope is that people will realize that UK citizens
continue to be among the world’s most privileged,” says Mulder. “Compared to the position of the bottom billion, who live on less than a dollar a day and stand to be hurt
by the crisis far more than we do, we still have it very good.”
Charities themselves are optimistic that the giving will continue. Save the Children held one of its largest ever fundraising evenings at Buckingham Palace in October,
hosted by Princess Anne. She compared the current financial climate to the economic difficulties of the 1970s, and talked of how the British public tends to pull together
when times are tough. Rosie Shannon, a spokesperson for the charity, agrees. “People are more likely to ditch their gym membership than cancel their £3 a month
donation to charity,” she says. “We’re not seeing a drop-off in contributions from the public or the larger donors.”
alt="Investor Warren Buffet is giving nearly all his massive wealth to the Gates Foundation to distribute">
Ben Eyre is from Philanthropy UK, which offers free advice to aspiring philanthropists. “The current financial situation makes philanthropy even more important,” he
says. “Demand for charitable services is going to increase and our support as donors is needed more than ever.”
Martin Brookes is chief executive of New Philanthropy Capital, a charity that advises donors and funders on how to give more effectively. He says it’s too early to tell if
giving will suffer. “Despite the current economic downturn, factors such as rising wealth, fiscal change, a growing social conscience and eagerness among donors to see
the impact of their donations, will continue to fuel a rise in philanthropy in the long-term.”
In reality, no one knows the extent of the credit crunch and what impact it will have on giving, but one fact remains – the need for continued generosity isn’t going away.
