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New Frontiers of Philanthropy: A Review

Posted on by Chris

New Frontiers of Philanthropy (Oxford University Press, 2014) is the Haynes manual for new philanthropists. With this book we can open up the engine of new philanthropy and check out the workings. With 653 pages plus an extensive bibliography it is a substantial volume covering the people and organisations involved in new forms of philanthropy, the tools that they are using, and key issues.

New Frontiers of Phil cover

Whether you are a fundraiser working with philanthropists or foundations, a researcher trying to understand philanthropy, the manager of a family foundation or a financial adviser you will find lots to interest you here.

The book has three main sections:

“New Actors” deals with new organisations in the philanthropy and social area. These new actors may be assembling capital, providing secondary markets or exchanges, or prospecting for new ventures, and Professor Lester Salamon makes clear in his introduction that many fundraisers are not considering our do not understand some of the key actors in finance, such as pension funds.

The section includes some terminology from the finance sector that we are going to have to get used to applying in the non-profit sector: “capital aggregators” for example are essentially fundraising organisations such as community foundations.

The increasing involvement of business in charitable activities is highlighted – and Rick Cohen contributes a chapter on corporate-originated charitable funds, such as the Fidelity Charitable Gift Fund with US$3.8bn in assets under management. These funds are growing faster, operating more efficiently, and selling more aggressively than their purely charitable counterparts, trends highlighted by Prof. Salamon who notes that commercial donor-directed funds are now larger than community foundations in the USA.

Because the book’s scope is so wide it includes entities that are on the margins between charity and business, or “impact-first” and “finance-first”. It includes a deal of material on businesses that are focusing on the “base of the pyramid” (the poor). For Prof. Salamon these are businesses that are meeting a social need; for me these are simply businesses dealing with a different market segment.

“New Tools” is an encyclopaedic description of the many different ways in which someone who wants to do social or environmental good might go about it. It covers loans, social impact bonds, socially responsible investment, new forms of grant making including prizes, crowdfunding… and more. Fundraisers and financial advisers should take the time to read this section because it will inspire both to try new products with their philanthropic customers.

The third section in the book, “Cross-Cutting Issues”, debates the issues that emerge from the new philanthropy including “the elusive quest for impact”. Dr Alex Nicholls and Rodney Schwartz send out a wake-up call to the fundraising community, with a chapter on the demand side of the social investment marketplace, saying that the challenge is “..not an insufficient supply of social investment capital but an insufficient supply of investment-ready deals.” (In plain fundraising speak: ‘there are lots of donors, but not enough well-prepared proposals’.)

In this section there is a thoughtful piece by Dr Maximilian Martin giving the global perspective on new philanthropy. Dr Martin challenges the conventional view, arguing that social capital markets are inefficiently relationship-driven, not value-driven. He is subtly signalling the limits of relationship fundraising, noting that “…nonprofit leaders typically spend vast amounts of time on fundraising rather than on the continuous improvement of the work of the organizations they lead.” [p.608] He creates the phrase “synthesized social businesses” to suggest that we should move from a world of small fragmented organisations to one in which we build larger business ventures with a social purpose. “A philanthropic foundation could acquire [control over] …a company with the mission to make the good or service available to as many people as possible around the world.”

If you want to understand what is happening out at philanthropy’s cutting edge, this is the book for you. No-one in the book is claiming that all our donors are going to be asking us about making a quasi equity investment in our social enterprise next week. But the evidence from the impact of the venture philanthropy movement in Europe is that these ideas are already circulating in a donor community that is looking for change.

Be prepared for the new philanthropy; read this book.

Factary and the new philanthropy
Factary has monitored and researched the new philanthropy for many years. We were the first research group to publish a report on venture philanthropy in the UK and we continue to monitor new developments. Contact Nicola Williams, nicolaw@factary.com or Chris Carnie, chris@factary.com if you would like to know more about our services in this area.

The Prospect of Power

Posted on by Chris

The Researchers in Fundraising conference this week in London feels like a milestone in our profession – the arrival of a real community of professionals.

There were signals everywhere that we are a real profession. We, the community, have our networks – I saw lots of ‘Hello again! How are you?’s. We have an emerging group of personalities – Martin Mina (Action on Hearing Loss) is the personification of the funny-but-with-a-message presenter. We have our academics – Dr Beth Breeze (University of Kent) continues to uncover the emotional underwiring that supports philanthropy and fundraising. We have international appeal, with Helen Brown (Helen Brown Group) and Gerry Lawless (iWave) flying all the way across the Atlantic to join us.

We have suppliers anxious to win our business and therefore competing (this is normal and healthy) to innovate for our sector. We have media – social media – as conference attendees Tweeted #RIFConf2014 to the world. We even have the beginnings of politics, the politics of women and women’s rights in a workplace where too many bosses (mea culpa) are still men, celebrated by Beth Breeze in her sense of enjoyment at a conference audience that was mainly female.

And we have the intellectual and ethical challenges that define a real profession, personified in Karl Newton of LSE with his intimate description of the Gaddafi incident.

So what’s missing? At the conference the missing ingredient, reported again and again by researchers, was power. They didn’t use that word. What they said was ‘I just can’t get my boss to take research seriously’, or ‘I couldn’t get the budget’, or ‘My boss wrote our policy and I can’t get him to change it.’

Power, and the lack of it, is not a new topic at RiF. But now that we have a real, fully-fledged profession the lack of it is becoming more painful. We need the power to influence our fundraising colleagues. We need the power to write strategy, manage people and influence policy in the fundraising community. We need the power to set budgets, hire and fire. We need the power to commission research, development and innovation in our field. With the Sword of Damocles of new EU data protection legislation hanging over us, we need the power to influence legislation.

We need power, and we need it now.

We know how power works. We research it all the time. It is linked to circles of influence, to people with a strong voice, to a community united behind one or two clear ideas simply expressed.

We don’t have to call it that. We can call it “voice” , or “influence” or “a seat at the high table.” We can be subtle about winning power or we can be loud and proud. We can fight or argue, persuade or hint.

We need friends high up in the non-profit trees. The Chief executive of a brand-name national charity who ‘gets’ research. The MPs and MEPs who used to work in nonprofits, who befriend research. Senior staff at the Institute of Fundraising. We need to find these people (ha! easy for us prospect researchers!) We need to cultivate them and we need to persuade them with one or two clear simple messages. And then, like good fundraisers, we need to steward them.

We can use the power of research. We can do this.

Factary Atom: what makes it different (and quite probably better)?

Posted on by Shaun

A few people in various research forums have asked how Atom differs from other providers of network maps. I thought I’d run through a few of the key differences here.

First, Atom is a tailored service. Unlike other providers, which mainly if not exclusively offer subscription-only access to their database, in an Atom project we would work with you to identify your specific needs and then prepare a dataset to meet those needs. For example, we could provide a map showing the connections of your board, your most generous supporters or potential major prospects. We can provide you with online access to this map, along with a guide instructing you on how to use it. We provide a copy of the data gathered during the course of our research for you to import back into your database. Finally, we are also able to provide a report drawing attention to any items of particular interest within your map.

Second, in contrast to many other network map providers we do not limit the information we gather to business positions only. We only use data from reliable sources (Companies House, Bureau van Dijk/DASH, Debrett’s People of Today and Who’s Who, to name a few) and do not ‘harvest’ unverifiable data from the internet. We also include information on individuals’ non-business positions – so any charitable affiliations, club or society memberships, social or family connections, leisure interests, and so on.

Third, we make use of more information that we gather to draw connections. Several other network map providers do include educational information on the people in its database – but I’m not certain whether they draw connections on that basis, which Atom certainly does. We also draw connections between people on the basis of shared leisure interests. This doesn’t indicate a real-world connection of course, but is immensely useful in strategising. In fact, since Atom is a tailored service we are in principle able to include any data available in the public domain within our maps.

The upshot of this is that our maps potentially present a more rounded picture of the individuals within it. A report we published earlier this year on the basis of the data gathered for Atom projects since its launch in 2011 showed that half of all connections discovered were on the basis of non-business positions. Given that non-profits often have different aims from businesses when using maps this additional data is, we feel, vital. For example should a map of your board show that one of them is connected to a trustee of a major grant-maker via a shared membership of a London club, this could form the basis of a useful point of access.

Finally, we use a method of showing connections between individuals that takes into account not only shared positions at an organisation but also the time spent at that organisation. If two people have spent time at the same company, but during non-overlapping periods, then there’s no true basis for saying a connection exists between them. Atom takes this information into account, drawing direct links between individuals only where they’ve spent overlapping years at an organisation.

Factary Director Martine Godefroid workshop at 9th AFF Conference

Posted on by Shaun

Martine Godefroid, Managing Director of Factary Europe, will be giving a workshop with Mélina Mercier, Director-General of the Fondation de l’UPMC, at the 9th Fundraising Conference of the L’Association Française des Fundraisers.

bandeau_ESR_2014_sm

Événement phare du secteur de l’enseignement supérieur et de la recherche, cette conférence vous permet, une fois par an, d’être au cœur des enjeux du fundraising, de rencontrer un grand nombre de professionnels du secteur et de monter en expertise sur tous les sujets qui font votre quotidien. Quel que soit votre niveau, quelle que soit la taille de votre structure, vous pouvez être de la partie!

L’innovation, la créativité et le renouveau sont au cœur de vos métiers; ils seront également au centre de la 9ème édition de la conférence et des sessions qui y seront dispensées. Inspirez-vous des intervenants internationaux qui seront à l’honneur cette année et puisez des idées applicables dans votre structure! C’est un moment unique pour prendre la température du secteur, motiver vos équipes… et vous-même! Vous pourrez partager vos bonnes pratiques, vos succès mais aussi vos craintes et échanger avec vos pairs tout au long de la formation.

The Venture Philanthropists: our ‘very comprehensive’ report

Posted on by Chris

At this week’s European Venture Philanthropy Association (http://evpa.eu.com/) conference, a senior UK venture philanthropist described our latest report, The Venture Philanthropists, as “very comprehensive.”

The focus of the report is the 254 board members and patrons who lead the UK venture philanthropy sector. We include biographies of each, and a handy networking index to identify who is linked to which fund. Many are people of wealth; we identify £38 billion in personal wealth.

Contents page 1

The 177-page report includes:

  • A clear explanation of venture philanthropy
  • A brief history of VP
  • Detailed analysis of trends in this fast-growing sector
  • Detailed profiles of the 22 venture philanthropy funds active in the UK
  • Biographies of the 254 board members and advisers who lead VP funds
  • More than 150 organisations and projects that have benefited from venture philanthropy
  • A who’s who in VP index linking people to companies and charitable trusts and foundations

The Venture Philanthropists is available at:

  • Non-profits: £250 per copy
  • For-profits: £300 per copy
  • Subscribers to Factary’s New Trust Update or Factary Phi, or those taking out a subscription with the report: £150 per copy.

To order a copy of the report contact Nicola Williams at Factary, nicolaw@factary.com or call Factary on +44 117 916 6740.

Who's who in VP
Who’s who in VP
Impetus-PEF
Impetus-PEF
Impetus-PEF people
Impetus-PEF biographies

Venture Philanthropy: A Great Growth Story

Posted on by Chris

We have just completed an in-depth study of the UK’s venture philanthropy sector – and it is all about growth.

Two years ago we reported that there were 11 venture philanthropy organisations in the UK, giving (or investing, or lending) a total of £52 million.

This year we have identified 22 organisations active in VP in the UK – double the 2011 number – with assets of £2.8 billion and income, at £274 million, up 171% on two years ago. The fastest growth area of all is in grants, loans and investments, up 221% on two years ago.

The report – The Venture Philanthropists – focuses on the 254 board members and patrons in the UK VP sector, including brief biographies of each. We include a Networking index that shows the links between VP supporters, companies and trusts or foundations. The report gives detailed information on each of the 22 venture philanthropy funds active in the UK.

The 177-page report includes information on more than 150 charities and projects that have benefited from venture philanthropy.

The Venture Philanthropists is available now:

  • Non-profits £250 per copy
  • For-profits £300 per copy
  • Subscribers to Factary’s New Trust Update, or those taking out a subscription with the report, £150 per copy.

To order your copy contact Nicola Williams at Factary, nicolaw@factary.com or call us on +44 117 916 6740.

Training Researchers and Fundraisers from Barcelona to Boston

Posted on by Chris

This week there are two significant training events for Factary. Today, Tuesday 8th October, Factary’s Chris Carnie is helping to launch the new Postgraduate Certificate in Fundraising at the University of Barcelona.

 

Launch of the Postgraduate Cert in Fundraising, University Barcelona

 

The course runs over an academic year (November to June) and covers the skills and techniques required to be a fundraiser, with a focus on practical tasks and actions. We’ve got a range of great speakers and trainers taking part, from NGOs, cultural and arts organisations, campaigning organisations, the health and foundation sectors. Find out more, and register, here.

And on Thursday, Will Whitefield and Chris Carnie are giving a webinar with APRA on prospect research in the UK. “An Island of Information“ is aimed at researchers and fundraisers outside the UK who want to understand the market here. Find out more, and register, here.

How the Elite Connect

Posted on by Chris

A new report by Factary shows how the elite connect in Britain.

We’ve looked at how people link up – how they know each other – because it’s so central to fundraising. We used data from Factary Atom, our connections research and mapping service.

We show why it is important to research business AND charity connections and highlight the role of the London Clubs (we name the most connected). We include statistics that show the relative connectedness of alumni from UK and US universities, and discuss the relevance of hobbies and interests in making connections.

The report, “My Friends… How the Elite Connect in Britain”, is available free for download here: How the Elite Connect

Postgraduate Certificate in Fundraising – Spain/Catalonia

Posted on by Chris

Factary’s Chris Carnie is part of the planning team for a brand new certificate in fundraising at the University of Barcelona.

The new course (http://www.il3.ub.edu/es/postgrado/postgrado-captacion-fondos-fundraising.html) runs from November 2013-April 2014.

It has a great team of tutors, including the Director of Fundraising at MSF Spain (Médicos sin Fronteras) Anna Pineda, and the director of one of the most innovative nonprofits here, Oriol Alsina from Fundació Amics de la Gent Gran. We’ve also got Juan Mezo, ex Marketing Director at Oxfam now at Valores y Marketing, and Miquel de Paladella, from SIC Social Innovation for Communities.

The course is focused on real-life practice – so it includes sections on how to ask, on understanding the market, on face-to-face and on innovation in fundraising.

Join us for this great new course, or tell your friends in Spain about it!

Twitter hashtag #fundraisingIL3