Power of One

1
Power of One

• The Fairmont Hamilton Princess
• February 27 28, 2009

2
Power of One

• Part A - Introduction

3

• To give away money is an easy matter, and in
  any mans power. But to decide to whom to give,
  and how large and when, and for what purpose and
  how, is neither in every mans power nor an easy
  matter. Hence it is that such excellence is rare,
  praiseworthy and noble.
• - Aristotle

4
Charitable Giving vs. Philanthropy

• Charitable Giving
• Immediate one-time relief to problem.
• Personal and emotionally driven.
• No ongoing relationship.
• No opportunity to influence disbursement of
  funds.

• Philanthropy
• Lengthy process focused on root causes of
  problems.
• Setting long term strategic goals.
• Rational strategic decision making.
• Ongoing monitoring assessment.

5
Role of Philanthropy

• The imaginative pursuit of less conventional
  charitable purposes than those normally
  undertaken by established public charitable
  organizations.
• - J.D. Rockefeller
• Philanthropy is not just government with less
  money. Its power lies in its ability to do what
  other institutions particularly government
  will not or cannot accomplish.

6
Making a Difference

• Vancouver secretary (Alice McKay) in 1944 donated
  1000 to begin the Vancouver Foundation, which
  inspired 10 local families to give 10,000 each.
  Today it is the largest community foundation in
  Canada (800m in assets).
• In 1875, Elizabeth McMaster, troubled by high
  death rates among children, gathered a group of
  women to establish Torontos Hospital for Sick
  Children. Women paid 320 to rent an 11-room
  house with 6 iron cots. Today, it is an
  internationally known hospital that treats more
  than 335,000 patients each year.
• In the mid 1980s, June Callwood, Canadian
  journalist and social activist, founded Casey
  House in Toronto, the first hospice to the world
  to provide support and palliative care to people
  with HIV/AIDS, at a time when little was known
  about the disease. She donated her own funds, as
  well as raising money and support for the cause.
• In 1980, Terry Fox, an 18-year old whose right
  leg had been amputated above the knee due to bone
  cancer, began his run across Canada to raise
  money for cancer research. To date, the annual
  Terry Fox Run/ Marathon of Hope has raised more
  than 400 million for research.

7
Workshop Exercise

• Question
• What are examples of charitable giving and
  philanthropy in Bermuda or elsewhere?

8
Power of One

• Part B Why do people give?

9
Philanthropist 7 General Types

• Socialites
• Devout

• Communitarians
• Investors

10
Philanthropist 7 General Types (continued)

• Repayers
• Altruists

• Dynasts

11
Workshop Exercise

• Question
• Identify prominent donors in your community and
  put them into these general categories.
• Think about other prominent people in your
  community who could fit into any of these
  categories. As a fundraiser or advisor, how might
  you
• Fundraiser- interest them in your charity?
• Advisor guide them in a philanthropic cause?

12
Power of One

• Part C Changes in Attitudes and Practices

13
Change in Social Values

• 1950s
• Deference to authority.
• Deferred gratification.
• Organized religion.
• Peace, order and good government.

• 2000s
• Autonomy.
• Hedonism.
• Spiritual quest.
• Life, liberty and happiness

14
Change in Attitude towards Philanthropy

• 1950s
• Motivated by guilt.
• Noblesse oblige.
• Religious sense of duty.
• Conspicuous.

• 2000s
• Personal choice/ control.
• Desire to make difference.
• Need to achieve measurable results.
• Quest for intensity, experience and escape.
• Desire for fun and spontaneous gratification.
• Less ostentation, but some recognition expected.

15
The Global Village

• People have instant access to others around the
  world through the internet, telephone networks,
  cellular phones and text messaging services.
• Also, advances in communication and
  transportation allow disease, environmental
  threat and political instability to spread more
  quickly consequently, social, medical and
  political problems can span borders.
• Example
• SARS epidemic
• Impact of September 11 terrorist attack on US

16
Privatization

• Private power to create social problems and to
  solve them has increased.
• Some corporations and individual wealth exceed
  size of some national governments.
• Examples
• In 2003, 24 of the 100 largest revenue producers
  in the world were countries, 76 were
  corporations.
• In 1970, 70 of funding for the developing world
  came from government sector, 30 from private
  sector. In 2003, these figures were 20 and 80,
  respectively.
• In 2003, more money flowed into Latin America
  through remittances than all forms of foreign aid
  and development assistance.

17
Super-Rich and Philanthropy

• Become very fashionable to give away money among
  super-rich (industrialists, entertainers, sport
  figures, etc.)
• New enthusiasm for philanthropy in part due to
  rapid wealth-creation in recent years and its
  uneven distribution (Carnegie believed wealthy
  had a duty to devote their fortunes to
  philanthropy)
• Now about 700 billionaires around world, with
  about 400 of them self-made (c.f. in 1996, 423
  billionaires)
• Philanthropy becoming popular in European
  countries, Russia, India, and China
• Great potential to transform philanthropy over
  next 20 years if used imaginatively

18
Other Societal Influences

• Social problems becoming larger and more complex.
• Government funding of charities shrinking in
  1980s and 1990s.
• Donors overwhelmed by number of requests and
  frustrated by inability to ensure their gifts
  will make a difference.
• No longer content to contribute to good causes.
  Want to get to root causes of problems and even
  to effect change in public policy.

19
Causes and Issues Addressed

• Several wealthy and ultra-wealthy individuals are
  strategically leveraging their financial
  resources, business savvy and entrepreneurial
  energy to create positive global change, e.g.,
  Warren Buffet, Bill and Melinda Gates, Richard
  Branson
• An important focus is improved healthcare and
  eradication of poverty, especially in developing
  countries, e.g., Bono of U2
• Former politicians and business people are
  donating not just money but also time and
  influence to such social causes as peace,
  disaster relief, poverty and health concerns.
• Recently, there has also been significant giving
  to academic institutions
• Common denominator desire to maximize impact of
  their personal contributions on achieving a
  preferred societal outcome.

20
Changing Face of Volunteerism

• At one time, there was an excess of volunteers
  willing to serve on boards and committees, and to
  almost undertake any task asked of them.
• Today, potential volunteers are asking
• What is it that you want me to do?
• When do I start and when am I finished?
• What do I get out of it?
• What is my degree of exposure?
• How solid is the organization?
• What is the reputation of the organization?
• Let me see the financial statement, minutes,
  directors and officers liability insurance
  policy, etc.

21
Changing Face of Volunteerism (continued)

• How not-for-profits are responding
• Replacing standing committees with task forces
  with specific terms of reference, timelines and
  resources. (strong staff support)
• Developing programs to identify, recruit, orient
  and train volunteers.
• Developing ways to ease out less effective
  volunteers.

22
The Millennials

• Born 1982-1999
• Outnumber baby boomers who are alive today.
• Values work collaboratively
• believe they can make world a better place
• immersed in causes, but not necessarily connected
  to specific organizations
• Main characteristics high level of digital
  fluency in all forms of social-media tools. They
  know how and where to begin using social media
  for social change consequently, they have a
  sense of powerfulness unmatched by older
  colleagues.

23
The Millennials (continued)

• How to work with millennial volunteers
• Allow them to be creative and have a greater
  sense of ownership in the cause.
• They thrive in bottom-up rather than top-down
  hierarchical organizations.
• Focus on cause, not the organization. If they
  cannot work within an organization, they will
  find a way to support their cause in their own
  ways (i.e. working outside institutions).
• Show them respect. They often feel overlooked or
  undervalued however, they have great deal to
  teach organizations about using social media and
  working in open, non-proprietary ways.
• Show them how to use their talent for creating
  social (relationship) networks to create networks
  that promote social change.
• Create ways for young people to explore issues
  and ideas in order to connect them with
  organizations.

24
Workshop Exercise

• Question
• What are the characteristics of philanthropy, and
  giving in general, in Bermuda?
• Has individual giving changed in Bermuda in the
  past decade?
• Has the pattern of volunteering changed?
• What do charities need to do to attract support
  in this changing environment?

25
Power of One

• Part D Individual Giving Some Comparisons

26
Giving by Individuals Some Comparisons

• In Bermuda
• Population 66,000
• Number of Charities 4000
• Most households make annual contributions

• In Canada and/or US
• 33 million in Canada 300 million in US
• 80,000 in Canada 1.4 million in US
• 91 households give in Canada 89 in US

27
Giving by Individuals Some Comparisons
(continued)

• In Bermuda
• Average donation 1264 mean donation amount
  300
• 55 donations go to church or faith-based
  organization
• Most popular causes after religions are
  healthcare and education

• In Canada and/or US
• Average donation 1160 (CDN), 1620 (US) mean
  400
• 38 to religious organizations (CDN)
• Healthcare and education favoured after religious
  organizations (CDN US)

28
Giving by Individuals Some Comparisons
(continued)

• In Bermuda
• Contributions have been increasing
• Increased wealth
• Increased awareness of needs
• Those with budget for charitable giving give more
  than those with no formal plan
• Donate cash, tag days, charity raffles

• In Canada and/or US
• Individual giving doubled in past 10 years
• Budgeted charitable giving results in
  considerably larger gifts (at least double)
• Donate cash, securities and other valuable items
  direct mail solicitation charity events and
  raffles

29
Giving by Individuals Some Comparisons
(continued)

• In Bermuda
• Most donations go to Bermudian charities
• No tax benefit to donor
• Most donations are not targeted allow charity to
  allocate the funds

• In Canada and/or US
• Donations must go to charities recognized by CRA
  (Canada) or IRS (US)
• Donor gets tax credit to be applied to personal
  income tax
• Increasingly, donors target their funds to a
  particular project or program of the charity

30

• Never doubt that a small group of thoughtful,
  committed citizens can change the world. Indeed,
  it is the only thing that ever has.
• - Margaret Mead, US Anthropologist
• 1901-1978