EMEA FINANCE
The Philanthropy Paradox
The Philanthropy Paradox, a think piece commissioned by Prism the Gift Fund looks at public attitudes and prospects for planned giving, highlighting worrying negative attitudes towards philanthropists at a time when the third sector most needs the support. The report is based on a survey conducted by NatCen with over 1,200 people. Most interestingly, it highlights a paradox, which is that the majority of people agree philanthropy makes society better, but almost a third do not believe philanthropists themselves are good for society. “This Think Piece describes and illustrates a paradox that has implications for all who care about building a stronger charitable sector: that the British public feels far more positively about the fruits of philanthropy than it does about those who fund it,” said Dr Beth Breeze, the writer of the piece. In addition, the report reinforces two known paradoxes – that donors tend to benefit alongside those they intend to help, and that wealth accumulation tends to precede distribution.
92 | Issue 22
A disconnect between philanthropy and the donor It is concerning that there seems to be a disconnect between the impact of philanthropy and the donors making the gifts. There is a danger this could lead to HNW individuals deciding to curb giving to protect themselves. Why would they want to be targeted by media or others in a negative light? In turn, charities are denied those larger private income streams. The advisors to donors need to help their clients navigate this. How does the private client industry, and their clients, address the paradox that welcomes donations but labels donors as “money grabbing, tax dodgers”? (Terminology used in the survey responses). Clearly education is vital on a number of levels: •
Education from primary school age is key to ensure everyone has a responsibility to give. To rely on the British government has been a default position for many years and we can do this no longer.
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In terms of UK tax breaks, many individuals are aware of Gift Aid but not the extent of its application.
