The business of charity lies in the heart of the giver
Donors should clarify impact of their benevolence
WITH global philanthropy on the rise, philanthropists need to ensure their giving makes an impact and sustainable difference to the recipients, according to Kerrin Land, chief executive of Old Mutual Wealth.
Land said high-net-worth individuals (HNWI) should carefully select beneficiaries and build longterm relationships and offer their skills to leverage the power of their monetary donation. “While benevolence of any kind is admirable, indiscriminate giving can be ineffective – both for that of the charitable cause and the aspirations behind the reason to donate,” she said.
With the number of HNWI in Africa having grown 145 percent over the past 15 years, Land believes that points to a growing pool of philanthropists. In October, Nedbank re- leased its 2016 Giving Report, which said South Africa’s HNWI gave a combined R7 billion in cash, goods and services to charities in 2015. The report found 70 percent of those who gave to charities did not measure the impact of their contributions, but relied on word of mouth and causes they felt strongly about.
Land said while people were willing to give their money and other assets to worthy causes, choosing which cause presented the biggest challenge to philanthropists.
“After deciding what cause to support, it needs to be determined if it is a once-off donation or requires regular support.”
She said it was critical to check if a potential beneficiary organisation had a great team in place, action plans and a track record of delivering sustainable solutions.
According to Land, more financial donations were geared at impact giving, which included venture philanthropy, micro-finance, impact giving and job creation.
Earlier, The Giving Institute released its Giving USA annual report, which found the richest Americans donated a combined $373 billion, with $265bn of donations coming from individuals. Foundations gave $58bn, bequests $32bn and corporations $18bn to charities last year.
Land said it was also prudent for philanthropists to meet legal and tax obligations before they put their money in any cause.
“Depending on the legal structure utilised, there are varying tax benefits and limits involved, and having a clear understanding of these is essential.”
Meanwhile, last week 60 countries met in Joburg for the first Global Summit on Community Philanthropy, organised by the Global Fund for Community Foundations (GFCF). The event brought together community philanthropy organisations, public and private donors and other civil society role-players from across the world.
Jenny Hodgson, executive director at GFCF and secretary of the Africa Philanthropy Network, said community-based philanthropy had a big role in the giving process.
“The global community philanthropy field has seen dramatic growth in many low- and middle-income countries over the past decade or so,” Hodgson said.
These formed an important part of the growing sector of organised philanthropy in parts of the world traditionally regarded as beneficiary rather than donor countries.