Tag: philanthropy

Mind the Gap

Posted on by Chris

Thank you for your comments in the Factary blog over the last few weeks. Even the ones we disagree with.

Really.

Because your comments – Adrian, Charlotte, Elizabeth, Finbar, Gareth, Jay, Jeremy, Jon, Julie, Luke, Nicola, Oliver, Peter, Philip, Sarah, Tim, – show the size of the gap between two camps.

In one camp are the people who work with philanthropists in charities, universities, theatres and museums. These people know that in order to manage a relationship with a customer – in this case, a philanthropist – we need to do what the banks, the supermarkets, the accountants, lawyers, architects and many others do. We need to be able to access public domain information in order to understand our customer, and we know that we have a legitimate interest in doing so. Sometimes we are required to do this research – for example by our supervisors at the Charity Commission.

Sometimes, we need to do this research before we have met the person. Which is why we have a range of controls, including legal controls and codes of conduct that set limits on this type of research.

In the other camp are the people who believe that precisely this type of research is an intrusion into an individual’s privacy. That searching for a named individual in Companies House fundamentally affects the rights of that person.

This is out of our hands now. The Fundraising Regulator and the Information Commissioner are putting together guidance that – we hope – will resolve this difference.

So we are closing, for now, this thread of conversation. We are not going to take any more comments in this area, for now. The debate needs much more hallowed halls than Factary can offer – it should be taking place in Parliament, or at the NCVO, not in our blog.

We have a job to do – to provide ethically sourced public domain information for our many non-profit clients, and we’d better get back to that.

The Future of Philanthropy, in 1 Question

Posted on by Chris

You are at a board meeting of your charity. Board member Jane mentions her friend Peter, and says he might be interested in making a donation. Peter, she says, is the owner of a large software company.

Peter, to be clear, is NOT A CURRENT DONOR. He has not opted in or opted out or opted for anything at your charity.

Back at the office you put Peter’s name into Google. It’s in your legitimate interests to do so, and Peter would expect you to do this.

Turns out that Peter’s business is based in Newcastle.

You are in London, so there is time and travel cost to consider if you are to visit him. You use Companies House to find out about Peter’s shareholding and the company’s profits. These figures help you estimate Peter’s gift capacity. Again, it’s legitimate for a charity to estimate the size of a potential donation before it decides to spend money on a visit to Newcastle.

At an invitation-only event on the 21st of February, the Information Commissioner’s staff will tell charities and the Fundraising Regulator whether or not they can do this search.

The future of philanthropy in the UK hangs on the ICO’s reply to this one question.

Can a prospect researcher do the search outlined above?

If the answer to the question is “No”, then high-value philanthropy in the UK will change dramatically.

It will no longer be possible to use public-domain information to identify or understand potential donors. Charities, universities, museums, hospitals and theatres will have to stop, immediately, all proactive forms of reaching out to new high-value supporters.

How will high-value philanthropists react? They will give less. When charities stop asking, people of wealth will stop giving, or give less and less often.This is not just an assertion – it is demonstrated by research. In “Richer Lives: why rich people give”, Theresa Lloyd and Beth Breeze report that 69% of rich donors give ‘If I am asked by someone I know and respect.’ Charities, from cancer research to the lifeboats, will have to adapt to a dramatic cut in their income.

Some philanthropists will respond by setting up their own foundations. We know from Factary’s New Trust Update that they are already doing this in some numbers. They will manage their own projects via these foundations, meaning less money for mainstream charities.

If the answer to the question is “No”, then the ICO is taking on not just the charity sector, but pretty much every business in the UK. Because every day hundreds of thousands of secretaries, assistants and marketing people do this exact search to check up on potential customers. Can that really be the ICO’s intent?

If the answer is “Yes”, then the ICO is affirming prospect research. We CAN continue to research, understand, and evaluate potential donors and, with permission, actual donors.

We will know the future of philanthropy in the UK on the 21st of February.


Chris Carnie is the author of “How Philanthropy is Changing in Europe”, published by Policy Press. He writes in a personal capacity.

Have I Mentioned…?

Posted on by Chris

Have I mentioned my new book? (It’s the vain author’s constant refrain.)

Yes, I know I have. But that was pre-publication. Now I have an actual copy in my hands, so that means that the orders have started shipping from Policy Press.

This is a book for practical people. It’s about how high-value philanthropy is evolving across Europe, so practical people in fundraising, in prospect research, in social investment, in policy making and in education will all find – I hope – useful information here.

If you are a major donor fundraiser interested in why your donors keep asking about impact, you’ll find an answer here.

If you are a private banker or wealth adviser who wants to understand why your clients keep on asking about foundations in France, you’ll find out why, here.

If you are a policy maker wondering whether to recommend further tax relief for donations, then you’ll find the arguments here.

If you are a prospect researcher, wondering where to look for potential supporters in Switzerland, you’ll find some answers here.

And if you are the director of an NGO, wondering what your strategic priorities should be, you’ll find some suggestions here.

The book includes case studies, detailed research, some how-to, and a bibliography of more than 300 sources and references in (count ’em, ladies and gentlemen) seven languages. Its focus is Europe, meaning that this is not about the UK + the Continent + Ireland – it’s about the Continent + Ireland, plus the UK.

I hope you find it useful.

 

Order “How Philanthropy is Changing in Europe” directly from Policy Press, here.

Divided Rules

Posted on by Chris

Prospect researchers are at the nexus of a storm between five government agencies. Thanks to the monetary penalties imposed by the Information Commissioner in December 2016 on two leading charities we can now see the extent of the battlefield.

In one corner is the Information Commissioner’s Office, ICO. In its press release announcing fines for the RSPCA and the British Heart Foundation, ICO condemned the use of “information from publically[sic]-available sources to investigate income, property values, lifestyle and even friendship circles.”

This appears to put the ICO in direct opposition to the Charity Commission. In a series of papers entitled ‘The Compliance Toolkit’ the Commission reminds charities that they have a duty to check on donors and potential donors. Tool 6 in the suite is called ‘Know Your Donor’, and here the Charity Commission asks;

“Have any public concerns been raised about the donors or their activities? If so, what was the nature of the concerns and how long ago were they raised? Did the police or a regulator investigate the concerns? What was the outcome?”

How would you find out whether “public concerns” have been raised, if you did not use “publically-available sources”?

You simply have to use newspapers, government sources, and a search engine if you are to find out whether public concerns have been raised. There is no other way. And of course the Charity Commission says so, recommending that “full use should be made of internet websites” to check donors.

Your duty

The Commission goes further, and reminds trustees that “…if the trustees have reasonable cause to suspect that a donation is related to terrorist financing, they are under specific legal duties under the Counter-Terrorism Act to report the matter to the police. In the case of money laundering, reports can be made to the police, a customs officer (HMRC), or an officer of the National Crime Agency.” The Commission suggests a threshold for reporting – donations of £25,000 or more.

But we are not done yet. Because if you have the slightest suspicion that the donor may be a bit iffy, the Charity Commission requires you to “…check the donor against the consolidated lists of financial sanctions targets and proscribed organisations.”

Gosh.

That means this list.

The list contains 8,885 names of individuals who are under sanctions. It includes their date and place of birth, their passport or ID number, and a biographic note such as “Manager of the branch of Syrian Scientific Studies and research Centre.”

That is personal information held in the public domain, that the Charity Commission requires us to review.

The Libya Connection

Why are four government agencies – the Police, HMRC, the National Crime Agency and the Charity Commission – interested in these checks?

In part, the story is linked to the London School of Economics, and the controversy over a gift from Libya. The result of the controversy was the Woolf Inquiry, which published its report in October 2011.

After a detailed study of the history of this gift, Lord Woolf made a series of recommendations on accepting funds from “less well known” high-value philanthropists including an inquiry into the sources of their funds (p. 69) and a thorough due diligence assessment (p. 22).

These searches are only possible with public domain information.

Catch-22

Under questioning at last year’s CASE conference, ICO spokesperson Richard Marbrow did allow that we could use public domain information for due diligence purposes. But he went on to say that this same information could not be used for assessing gift capacity because that would be an “incompatible purpose” for the use of data.

But that leaves us prospect researchers in Catch-22.

I cannot carry out full due diligence on all my prospects. To do so would be a scandalous waste of charity resources. The Charity Commission suggests that the threshold should be £25,000. So if I am to decide that Mrs A or Mr B must be checked via due diligence…I have to assess their gift capacity.

To do that, I need the help of a fifth government agency, Companies House.

Open for Business

Mr Marbrow cited Companies House various times during 2016, telling fundraisers and prospect researchers that because the information in Companies House was collected for one purpose – regulation – it could not be used for another – prospect research.

What does Companies House say? Here is their July 2014 press release*

“Companies House is to make all of its digital data available free of charge. This will make the UK the first country to establish a truly open register of business information.
As a result, it will be easier for businesses and members of the public to research and scrutinise the activities and ownership of companies and connected individuals. … This is a considerable step forward in improving corporate transparency…

It will also open up opportunities for entrepreneurs to come up with innovative ways of using the information.”

So, Companies House wants us to “research and scrutinise the activities and ownership of companies and connected individuals,” and to find “innovative ways of using the information.”

The Battle for Philanthropy

Prospect researchers are caught in the centre of a battlefield between government agencies, between “innovative ways” of using information, terrorism legislation, due diligence and privacy.

We must defend our corner of this bloody battlefield.

We need our friends in fundraising and philanthropy, in Parliament and in civil society, to support the sensible, ethical, managed use of public domain information in the search for philanthropists.

 

 

*I am grateful to a colleague at a leading University for pointing this out.

Chris Carnie is the author of “How Philanthropy is Changing in Europe”, published by Policy Press. He writes in a personal capacity.

In Defence of the Public Domain

Posted on by Chris

A university, a museum, or a charity does not raise £10m or £50m or more by accident. An alumna did not wake up one morning thinking “I must give £1m to my alma mater.”

This happened because a dedicated group of professionals managed a process that led to the alumna being asked for a very large philanthropic gift.

At the heart of that process was, and is, the prospect research team. The team used – like we all do – public domain information to identify and understand potential supporters.

But now one government agency, the Information Commissioner’s Office, wants to stop us using public domain information. In the emotionally-worded press release that accompanied the penalties for the British Heart Foundation and RSPCA, the ICO says that “companies used other information from publically [sic]-available sources to investigate income, property values, lifestyle and even friendship circles.” ICO staff members at fundraising and research conferences throughout 2016 told us that the information on directors held by Companies House is compiled for one purpose (regulation of business) and therefore cannot be used for another (prospect research.)

So perhaps we cannot use public domain information to identify and understand potential supporters.

Purposes

But think for a moment.

Why do I have my profile in LinkedIn? What is my ‘purpose’? Is it just a marketing tool, showing potential clients what a clever chap I am? No! I had all sorts of purposes in mind when I created my profile in LinkedIn. I wanted to reassure clients that I was, and am, a decent person. I am proud of what I have done and wanted – sorry folks, this gets personal – to boast a wee bit about setting up Factary, about the books I have written and the languages I speak. I wanted access to the profiles of other people with whom I might work or even play. I wanted to explain who I am and how I got here – it’s cathartic. And I wanted a useful depository for my lifeline – to remind me of exactly when I went to school or which year I started in fundraising.

I had a whole variety of ‘purposes.’

Expectations

As a result, I have a very wide variety of ‘expectations.’ This word is important, because the ICO believes that “millions of people who give their time and money to benefit good causes will be saddened” by the news that charities targeted them for more money; in other words, this is about what people expect. With my profile in LinkedIn I expected that people would look at my personal story. I expected that Southampton Uni, my alma mater, would contact me about a donation (they did.) I expected that I would be networked to, and with (and indeed welcomed that opportunity.)

The person who has her biography in Who’s Who, or who gives a personal interview in the Times, or who is listed as the director of a company, or as the trustee of a charitable foundation has the same wide range of expectations.

The ‘purpose’ of a personal interview in the Times is to sell advertising space on the facing page of the newspaper; “All the papers that matter live off their advertisements,” said George Orwell, in Why I Write*.

But that is not the ‘purpose’ that the interviewee had in mind when she was approached by the journalist. Nor is it the ‘expectation’ of the interviewee. She knows, when she agrees to give the interview, that her warts-and-all will be exposed to public view. She expects that she will receive praise, opprobrium, investor pitches, car sales teams and an approach from a headhunter as the result of her interview.

The Public Domain

Information on company directors in Companies House – the Registrar of Companies for England and Wales – is made public for various purposes. The Registrar was created by The Joint Stock Companies Act of 1844. In the debate of the Bill that would create the Act (3rd July 1844), Mr Gladstone said “The principal object of the Bill was, that there should be established a public office, to which all parties soliciting to take part in Joint Stock Companies might repair, in order to know the real history of these companies.” Mr Gladstone was talking very clearly about corruption; “…it was most important that the Legislature should put a stop to the system that had been so long carried on of attaching the names of hon. Members, and men of importance and property, to schemes in order to entrap the unwary.”

So here again, at Companies House, we have a variety of purposes for information in the public domain. It is right and proper that prospect researchers use Companies House information to establish the “real history” of “men of importance and property”, and, 172 years after Mr Gladstone’s speech, of women of importance and property too.

All the universities that are engaged in raising funds, along with our theatres, museums and charities, manage a process that results in high-value philanthropy. At the heart of that managed process is prospect research. And alongside every prospect researcher is public domain information.

People in the public domain – in Who’s Who, or LinkedIn, the Times or Companies House – are there for a variety of ‘purposes.’ They expect that the information will be used in a variety of ways – including, yes, by people who will lead them into great philanthropic acts.

We prospect researchers do great works with public domain information. It is wholly legitimate that we use public domain information for this purpose. We must defend our right to do so.

Chris Carnie is the author of “How Philanthropy is Changing in Europe”, published by Policy Press in January 2017. He writes in a personal capacity.

*The fuller quote, given here is:

“Is the English press honest or dishonest? At normal times it is deeply dishonest. All the papers that matter live off their advertisements, and the advertisers exercise an indirect censorship over news.”

Annus Horribilis

Posted on by Chris

2016 has been my personal annus horribilis, at least in the public domain. (Privately, I’m fine thanks.)

It has been the year when two of my working-life projects have fallen apart.

First, my life as a European was cut off at a stroke by England’s vote for Brexit.

And then as an early Christmas present, the Information Commissioner decided that more or less everything that I had dedicated my working life to doing – understanding philanthropists so that charities could work better with them – was illegal, immoral and subject to multi-thousand pound fines.

The Brexit decision is too political a story for this blog. Suffice it to say that when one choses as a UK citizen to live in another EU country, learn its languages, learn and enjoy its rich cultural traditions, and feel thoroughly welcome as an immigrant, it is physically painful to know that a cabal of alt-right Ministers in Westminster are determined to throw you out.

So let’s focus on the Information Commissioner’s announcement yesterday. We would expect the Commissioner to use cautious language. She does not. She piles right into the topic by claiming that ‘millions of people who give their time and money to benefit good causes will be saddened to learn that their generosity wasn’t enough.’

This is a clear example of evidence-based policy making. The Commissioner has evidence, we assume, that there are ‘millions of people’ who will be saddened that their generosity did not suffice. Given the paucity of information on donors in the UK, it would be so helpful if the Commissioner would share this data with the rest of us.

If the subjects gave their permission, of course.

Given that we are living in an age of austerity in which the ICO’s paymasters in government (of whichever colour) are cutting back on benefits, rights and payments, I would be utterly astonished if there were even ten donors, let alone millions, who would feel that their generosity was enough. It is never enough. Ask any of the homeless people in London if it is enough. Or the 960,000 people living in poverty in Scotland.

The Commissioner then applies the same broad brush approach to what she describes as ‘wealth screening.’ The language is purposefully vague and catches within its apparent scope almost all customer-focused, relationship-building, fundraising. It appears, on one reading of the statement, that it is somehow wrong to use information including ‘supporters’ names and addresses, dates of birth and the value and date of the last donation.’ It appears that to investigate ‘income, property values, lifestyle and even friendship circles,’ may be illegal, along with the ability to model ‘donors most likely to leave money in their wills.’

Adrian Beney has pointed out in an excellent blog that this is to do not with information or privacy, but our attitudes to money.

For me, it’s an Edwardian view of ‘charity.’ It’s a penny in an old man’s hat. Thanks guv’nor. Lord bless your little ones. It is about a one-way relationship, donor to ‘charity.’

There is a load of evidence (yes, actual evidence Commissioner) that this is not how donors want to relate to ‘charities’ (or, as we now call them, non-profits, or Social Purpose Organisations.)

Here is just one of dozens of research reports I could cite; ‘Donors respond to personalised communications from charities that they have a relationship with, and prompts from family, friends or colleagues.’ (source, Bagwell, Sally, Lucy de las Casas, Matt van Poortvliet, and Robb Abercrombie. ‘Money for Good UK: Understanding Donor Motivation and Behaviour’. London: New Philanthropy Capital, March 2013. http://www.thinknpc.org/publications/money-for-good-uk/., page 3).

And yet the Commissioner rails against non-profits that identify ‘friendship circles.’

The Commissioner has, either purposely or unwittingly, threatened the development of high-value philanthropy in the UK. By using this broad language, by focusing on an evidently outdated view of ‘charity’, and above all by fining organisations that are trying to build relationships with their supporters based on mutual understanding and knowledge, she has ensured that UK charities will step back, return to the door-knock and the ‘appeal’, never knowing (because the ICO bans such research) who is behind the door or receiving the letter.

This lack of research will drive a wrecking-ball through relationships between high-value philanthropists and non-profits. It is not coincidental that so many people of wealth are now establishing their own foundations; it is already hard enough to persuade them that they should build a relationship with an existing non-profit.

Thanks to the ICO, that job just become harder.

 

Chris Carnie is the author of ‘How Philanthropy is Changing in Europe‘, to be published by Policy Press in January 2017.

International Research – some Resources for RiF

Posted on by Chris

At the Researchers in Fundraising Conference, 25th November 2016, I promised a list of the sources I mentioned. Here it is.

Bilanz 300 Die Riechsten
Type Magazine Article
URL www.bilanz.ch
Publication Bilanz
Date Annual
Language German
Abstract Annual rich list published by Swiss business and economics magazine.

CNMV – Informe anual de Remuneraciones de los Consejeros de las sociedades cotizadas
Type Report
URL http://www.cnmv.es/portal/Publicaciones/PublicacionesGN.aspx?id=46
Institution Comisión Nacional del Mercado de Valores
Language Spanish
Abstract Annual survey of salaries of company directors in quoted companies in Spain. Shows breakdown of average salaries, and is useful for estimating income.

FIN Association of Foundations in the Netherlands/ Vereniging van fondsen
Type Web Page
URL http://www.verenigingvanfondsen.nl/
Abstract FIN, the Vereniging van Fondsen in Nederland, is the association of leading Dutch foundations

Fondsenboek 2015 and Fondsendisk
Type Book
Author Sophie Duijts
Place Zutphen
Publisher Walburg Pers
ISBN 978-90-5730-987-8
Date 2015
Language Dutch
Abstract Directory of foundations in the Netherlands, including information on 737 foundations. €49.50 price.
# of Pages 448

Helen Brown Group
Type Web Page
URL http://www.helenbrowngroup.com/index.htm

Kamer van Koophandel
Type Web Page
URL www.kvk.nl
Abstract Legal register for all companies in the Netherlands. Includes company ownership information and accounts

Miljonair
Type Magazine
URL http://www.miljonair.nl
Language Dutch
Abstract Lifestyle magazine aimed at HNWIs in the Netherlands. Includes some profile interviews, and occasional features on philanthropy.

Moving Mainstream. The European Alternative Finance Benchmarking Report
Type Report
Author Robert Wardrop
Author Bryan Zhang
Author Raghavendra Rau
Author Mia Gray
URL http://www.jbs.cam.ac.uk/index.php?id=6481
Place Cambridge, UK
Pages 44
Date 02/2015
Institution University of Cambridge, Judge Business School
Language English
Abstract Includes details on crowdfunding, with data on growth, with peer-to-peer fundraising

Paperjam
Type Web Page
URL http://paperjam.lu/
Abstract Business website and magazine for Luxembourg. Publish an annual “Paperjam Guide” including a business directory and biographies of company leaders.

Portal de la Transparencia
Type Web Page
URL http://transparencia.gob.es/
Language Spanish
Abstract Spanish Government website showing structure, funcion, curricula and salaries of top civil servants.

SOCIETE.COM
Type Web Page
URL http://www.societe.com/
Accessed 05/09/2013, 16:03:03
Language French
Abstract Company information from the French Registre du Commerce

Transparente ANBI
Type Web Page
URL http://www.transparante-anbi.nl/ANBI/Home/2274
Abstract Listing of ANBI including foundations in the Netherlands, following the transparency law. Searchable by foundation name.

How Philanthropy is Changing in Europe.
Type Book
Author Christopher Carnie
URL http://policypress.co.uk/how-philanthropy-is-changing-in-europe
Place Bristol
Publisher Policy Press
ISBN 978-1-4473-3110-0
Date 01/18/2017
Language English
Abstract There is a new age of philanthropy in Europe – a €50 billion plus financial market. Changing attitudes to wealth, growing social need and innovations in finance are creating a revolution in how we give, aided and sometimes abetted by governments. Mapping the changes, Christopher Carnie focuses on high-value philanthropists – people and foundations as ‘major donors’ – investing or donating €25,000 upwards.

It Will Take a Researcher

Posted on by Chris

It will take a researcher to wake up the fundraising community.

You.

Because it is time to wake up your fundraising colleagues to a new reality in philanthropy. A reality that is working its way through many of your major donors, your trust donors, your finance sector and bank donors, and even your government grants programme.

This is not some insidious virus, although it could eventually cause the extinction of some organisations. Its effects are dramatic on the organisations and people it touches, showing then a new reality, new priorities and a new and different way of reaching their goals.

This is Venture Philanthropy and Social Impact Investment (VP/SI), the subject of last week’s EVPA conference in Paris. The conference confirmed the coming of age of VP/SI, with a mix of leading foundations, banks, philanthropists and a growing band of intermediaries working in the “financial ecosystem” around this mix of investment and philanthropy.

The banks and advisors are very excited by this new market. They like the mixture of social change and financial tools, and they are building teams to help their HNWI and UHNWI clients work in this area; I met a seven-person team from one French bank including account managers, due diligence staff and social investment experts.

Welcome to your newest competitors. They are well-resourced, hungry for new business, have loads of great customer relationship data, and have a dizzyingly good contact book.

Your HNWI and UHNWI donors and prospects, along with trusts and foundations that you work with, are being courted now, by the banks. If your fundraising colleagues are not aware of this trend then maybe it’s time for you to give them a wake-up call.

Doing that could be easier than you think.

Transparency

One of the remarkable (at least in Europe) characteristics of this market is its transparency. I chaired a session on failures in philanthropic investments, and 50 people in the room ‘fessed up to one or other bad decision, and then shared the leanings from their failure.

For prospect researchers the new transparency means that there is an increasing volume of well-researched information on the sector.

Start with the EVPA website, where there are high-quality research reports, and a full list of members (Factary is an Associate Member). Then check the HNWl offerings of banks such as JP Morgan, Credit Suisse or Rabobank. Next take a look at foundations operating in this space. Esmée Fairbain Foundation or Impetus /PEF in the UK, Fondazione CRT and Fondazione Cariplo in Italy, Noaber in the Netherlands… The list is growing, and in Europe alone EVPA has 200 members. In Asia the growth is even faster and EVPA’s sister there, AVPN now has 300 members.

Then look at how organisations, many of them small social change non-profits, have taken up the challenge of working with these demanding but exciting investors. The EVPA website includes case studies and examples. Check out Factary’s reports on the sector.

And finally talk to your colleagues. Tell them that there is a significant new movement in high-value philanthropy. It’s a movement of people who want to invest, not give. Who want to participate, truly participate, in your work; these people do not want a packaged project on a gilt plate. Tell them that in the view of many VPs, traditional fundraising is a costly, inefficient way of winning funds. And tell them that this will take time but that it could transform your organisation and, more importantly, transform the lives of the people you work with.

But do, please, tell them. Because no-one else is. Amongst the 500 delegates at the EVPA conference I counted just three fundraisers. Three! In a hall full of philanthropists.

Your research could help your colleague to be number four. Do it, now.

 

 

Chris Carnie’s latest book – How Philanthropy is Changing in Europe – is to be published in January 2017 by Policy Press: pre-order your copy here!

How Much Can She Give? Some maths, from Spain

Posted on by Chris

Prospect research in continental Europe is tough. You spend your life saying ‘if only we had [fill in name of favourite source]’.

There are rays of light, as Europe gradually opens up to transparency, but they are rarely truly illuminating.

The hardest part is to try to estimate Gift Capacity. At Factary we define Gift Capacity as ‘the largest gift that an individual could give to any cause in ideal circumstances, over three years.’ By defining it that way we are saying, as objectively as one can in the murky world of money, that this is the best of the best, the biggest possible gift. Not ‘how much she will give to my charity‘, but how much she can give. And not ‘how much can she give this year?‘, but an amount spread over a period of three years.

How much she actually donates to your cause depends on many factors, including the strength of the connection to her, her positive and negative feelings about your organisation and, of course, how much you ask for.

But here in Catalonia and Spain, even the starting point for Gift Capacity research is difficult. So it is a Red Letter Day when some data on wealth appears.

The annual publication on directors’ salaries by the Stock Exchange Control Committee (CNMV, www.cnmv.es) is just such a day. The 2015 report was published last week.

In part the interest is vicarious. Learning that the Executive Chairs of Ibex-35 companies are now earning an average of €3.45 million is galling when you are a prospect researcher in Spain (average salary unknown but unlikely to be more than €25,000, and mostly under €20k); those Chairs earn more in three days than you earn in a year of labour.

But the data – the full report is here – does help us. Non-Exec directors are now earning an average of €763,000, up a staggering 48% on the previous year (clearly these are hard-working men and women), and the average across all quoted company directors is €344,000, up a mere 8.2% on the previous year.

So now you have an idea of how much she is earning, can you reliably calculate gift capacity?

Unfortunately, there is very little data to help you do that.

A 2006 study of tax returns [1] showed that people earning more than €600,000 per annum were giving an average of €3,268 – meaning 0.54% of their income. This was their declared giving on their declared income, and both figures are likely to be conservative.

So at your most cautious you could say that the Executive Chair of an Ibex-35 company might give 0.54% of €3.45 million, which would be €18,760.

That’s a start!

1. Sánchez Pérez, Elisa. ‘Evolución y situación actual de la filantropía en España’. In La Filantropía: Tendencias y Perspectivas, 125–46. Papeles de la Fundación de Estudios Financieros 26. Madrid, 2008. http://www.fef.es/new/publicaciones/papeles-de-la-fundacion/item/189-26-la-filantrop%C3%ADa-tendencias-y-perspectivas.html.