Funding, Giving Trends

Includes publications from New Philanthropy Capital, Centre for Charitable Giving and Philanthropy....

London Funders' Publications
Is it SIBable? Payment by Results
(2012) This hot topic attracted a crowd of funders, and how some are already embarking on PbR processes and others are interested to review the pros and cons (especially who bears the financial risk) before deciding whether or not to take the plunge. The report details discussion on the spectrum of possibilities PbR offers and the activities which best lend themselves to it as method of funding. 

See more PbR publications here.

Supporting the VCS: Are they more at risk than the front line?
(2012) Often thought of as an invisible issue, this report challenges a breadth of attitudes and remind funders of the range of support services which the sector needs.

Publications
Arts sector survey

Arts Quarter, 2011
Fourth survey of the impact of the global recession on the UK arts sector, looking at 452 varied UK arts organisations. It finds that an increase in the number of organisations competing for private sector support is leading to “fundraising bottlenecks”; the majority of respondents believe they will be unlikely to recover losses in public sector funding from other sources until at least 2015; and a declining faith in the 2012 Olympics and Cultural Olympiad's capacity to generate additional revenue and create a long term legacy of greater arts attendance after 2012.

Best practice guidance for local authorities and the VCS
NCVO report and recommendations for local authorities on ways they can support the VCS adapt to changes in funding. It includes case studies from councils that have been creative in supporting the VCS. 

Briefing Note 9: UK corporate citizenship in the 21st century
Catherine Walker, Cathy Pharoah, Marina Marmolejo and Denise Lillya, CGAP and Directory of Social Change, 2012
These two organisations have analysed trends in corporate giving by UK listed companies.

Capital Matters
Margaret Bolton and Clare Cooper, Mission Models Money, 2011
Research report setting out a strategy for building the financial resilience of the UK’s arts and cultural sector, especially medium-sized organisations in the not-for-profit sector in England and Scotland, through capitalising the sector.

Changing corporate behaviour through shareholder activism
Nathan Cummings Foundation, 2010
How this US foundation applied mission-related investment practice to its share portfolio. 

Charities Aid Foundation report: Britain’s Civic Core
Charities Aid Foundation (2013)
This report discovers that 9% of people give 66% of the time and money donated to charities, the country’s while 24% do little or nothing for charity. See the CAF news release or download the report Britain’s Civic Core – Who are the people powering Britain’s charities?

Co-mingling Fund Structure Note
Piers Warburton at Ashurst LLP (November 2013)
Produced for the Cabinet Office who consulted with Hogan Lovells, Morrison Foerster and Bates Wells Braithwaite. This note templates a structure for a possible co-mingling fund that could be used as a reference for organisations looking to establish similar structures.

Co-mingling Fund Summary of Terms
Piers Warburton at Ashurst LLP (November 2013)
This summary illustrates the principal terms that could be used for a co-mingling fund.

Co-mingled investment funds – subordinated investments and charity trustee duties
Luke Fletcher at Bates Wells Braithwaite (November 2013)
This note sets out high level principles which trustees of charities should consider when deciding whether or not to make subordinated investments in co-mingled funds.

Coutts million pound donors report 2012
In association with the Centre for Philanthropy at the University of Kent, researched by Dr Beth Breeze, 2012
Fifth annual report on donations in the UK worth over £1 million made by individuals, trusts and corporations

Diminishing dollars for social justice philanthropy
Foundation Center and Cricket Island Foundation, USA, 2011
Social justice grantmakers in the US have been disproportionately affected by the global financial crisis and remain vulnerable to economic shocks. Foundations with less than $50 million in assets are struggling the most to recover from the economic downturn and social justice non-profits are having difficulty finding new funders; some foundations are slowly, if unintentionally, depleting their assets, which could mean further reduction in social justice grantmaking.

European foundations working together
GrantCraft, 2012
European foundations are very diverse – many in continental Europe combine grantmaking with running operational activities, for example, and different legal and tax regimes help shape very different national patterns of foundation development. Nonetheless, there is an increasing number of collaborative ventures between foundations and across national boundaries. This publication usefully examines some of these.

Family Foundation Giving Trends 2011
Alliance Publishing, 2011
Cathy Pharoah with Charles Keidan and Jillian Gordon, November 2011
This year’s report updates league tables of the largest UK family foundations measured by annual charitable spending, and sets out examples of the influences, motivation and strategies of large and small family foundations, based on interviews with philanthropists and funders.

For good and not for keeps
Richard Jenkins and Kate Rogers, Association of Charitable Foundations, 2013
A report on how to balance current needs against the needs of future generations in terms of investment decision-making and the amount of money drawn down for annual expenditure. It investigates traditional options alongside what the authors call the ‘open ended’ charity which recognises that preserving the real value of endowment is only ever going to be a probability rather than a certainty.

Funder collaboration: a compelling and cautionary tale
Rick James, International Training and Research Centre, 2013
A readable account of a funder collaborative, useful for its analysis of the costs, compromises and commitment involved in making a collaboration work. It concludes: “What is clear is that despite the costs and difficulties involved, the members have subsequently scaled up their collaborative ventures with other funders. They say that the learning they gained from this demanding, first-hand experience made it worthwhile.”

Funder network: Evaluating the pilot knowledge-sharing website
NPC, 2012
Report on a six-month pilot website to improve learning and knowledge-sharing among charitable funders. The pilot site has over 300 users from 150 foundations and is run by the Association of Charitable Foundations and funded by the City Bridge Trust. See the website here

Funding the Future
NCVO, 2010
Final report of NCVO’s Funding Commission, identifying a series of practical, costed proposals for improving financial resilience in the voluntary sector and strengthening fundraising skills. Its recommendations include increased donor engagement, a 'Better Asking' Campaign, and ways to increase the share and quality of public sector contracts for the VCS, increase trading income and commercial sector support and attract more private sector investment. Measured recommendations to Government sit alongside ideas about maximising the use of current resources and increasing the financial capability of voluntary organisations. Summary also available.

Giving back to communities of residence and of origin
Cathy Pharoah and Tom Mackenzie, Centre for Charitable Giving and Philanthropy at Cass Business School, 2013
A study of remittance culture”, funded by Trust for London, finds that families sending money abroad (5% of UK households) are also more likely to give to British charities than other UK households. The research results show how hard working many migrants and people from minority communities are (“they are less likely to be on benefits and show great awareness and care for their communities in the UK and abroad”)

A History of the Barrow Cadbury Trust: Constancy and Change in Quaker Philanthropy
Merlin Waterson and Samantha Wyndham, 2013
A history of the Barrow Cadbury Trust’s work, first in Birmingham and the West Midlands and later elsewhere in the United Kingdom and overseas. The book also describes how subsequent generations of the Cadbury family have ensured that the work of the trust has continued to evolve with the changing social context, straddling the creation of the welfare state for which they had long argued. More information including how to purchase a copy of the book, can be found here.

How donors choose charities
Beth Breeze, Centre for Charitable Giving and Philanthropy, 2010
The strategies that donors adopt when faced by the choice of giving to competing causes.

Impact investments: an emerging asset class
Research report by JP Morgan Chase & Co., Rockefeller Foundation and Global Impact Investing Network, 2010
The report defines impact investments as investments intended to create positive impact beyond financial return where there is an intention to generate positive social and/or environmental impact. Investors considered include community development finance institutions and foundations, private wealth managers, pension fund managers, etc. Their impact objectives can range from mitigating climate change to increasing income and assets for poor and vulnerable people. Investments take the form of traditional financial structures, such as debt or equity, or more structures where returns are linked to measures of social performance. The report examines this broad landscape, what makes it an emerging asset class, expectations for financial returns, estimates of potential investment opportunities in specific sectors, and risk management and performance monitoring issues.

Inspiring Local Philanthropy
Coutts Bank, New Philanthropy Capital and Community Foundation Network, 2011
This report makes the case for supporting “low level”, local community activity to help communities thrive and reach the most vulnerable people. It makes the case in part through some case studies of major donors who focus a lot of their giving on the geographic areas that matter to them.

The Landscape of Funding Tools

This note summarises some of the tools which can be used by governments, agencies, investment organisations and foundations, to provide funding for projects and organisations (many of which Nesta has experience of). These range across the continuum from pure grants designed to achieve public benefit, to very commercial investment primarily designed to achieve a private return.

Local giving: possibilities for support and development organisations
Nadia Bashir, Chris Dayson, Peter Wills, Sheffield Hallam University and NACVA, 2013
Research on how local support and development organisations can promote local giving contains a wealth of information, including an update on research data on patterns of giving, a reminder about tax incentives, and government effort to promote giving. Its main thrust is on building local partnerships and coordination to provide the most effective approach to potential donors and inspire them to support their local VCS, including smaller groups with less capacity to fundraise. Major recommendation that local support organisations develop a partnership with community foundations.  

Payment by results-can it work for charities
A useful article in ThirdSector magazine exploring contrasting views, with cases and ten dos and don’ts. See also London Funders report of a discussion between funders led by Debbie Pippard (Barrow Cadbury Trust), Ben Jupp (Social Finance) and Eileen McMullan (Supporting People, LB Islington): Is it SIBable? can be found here.

Payment by results: how can payment systems help to deliver better care?
The Kings Fund, 2012
The role and objectives of payment systems in the NHS, focusing on payment by results (PbR),  around 30% of the NHS budget. Is PbR in particular still fit for purpose, given changing policies and priorities, such as the need for disease prevention, the prevalence of long-term conditions and the changing economic environment? The report asks for more flexibility in payment systems to achieve better patient care.

Planned giving and measurement of giving – a bibliography of research references
Centre for Charitable Giving and Philanthropy, 2012
CGAP has prepared this extensive bibliography on the measurement of giving and on planned giving, drawing on sources available through its current research and intended as a useful starting point for researchers. It will be updated and extended as more material becomes available. Additions are welcome, by emailing reference details to Rachel or Margo.

Rebuilding the relationship between affordable housing and philanthropy
Dan Corry, various authors, Vicki Prout (2013)
Published with Peabody and The Smith Institute, this report discusses the outcomes that housing associations create and their charitable funding as well as the future of the affordable housing and philanthropy sectors.

Retail Social Investment across the world
Big Society Capital (March 2016)
This report looks at how members of the public can engage with social investment to provide longer-term capital to charities and social enterprises. Over 55,000 people now have social savings accounts. The fastest growing area is in direct investment such as community shares, where 75 new offers raised £36 million in 2015. The paper looks at interesting models of engaging the public in social investment across the world.

Scanning the landscape 2.0: finding out what's going on in your field
GrantCraft, 2012
This publication explores funders' approaches to "scanning" — examining the field as a whole and identifying opportunities, needs, and gaps — as a way to hear from constituencies, understand emerging issues, and map the funding environment. It reflects on key changes in philanthropy such as the rise of social media.

Socially responsible investment - a practical introduction for charity trustees
EIRIS Foundation and Charity Finance Directors Group, 2010
Guide to assist trustees adopting or updating responsible investment strategies.

Strong Foundations: How corporate foundations raise money and do good work, NFP Synergy (January 2017)

In this brand new free report, NFP Synergy has published findings from its research into 20 of the most well known corporate foundations in the UK.

Download here              

Ten ways to boost giving
New Philanthropy Capital, 2011
A practical publication that responds to the stagnation in individual giving which has remained at 0.4% of total household spending for some 20 years. Ideas and recommendations are explored to encourage banks, foundations, charities and government to play their relevant part in encouraging and supporting more generous giving. 

Turning a corner: transition in the voluntary sector 2012-13
Eliza Buckley, Ben Cairns and Richard Jenkins, Institute for Voluntary Action Research, 2013
Based on research with frontline social welfare organisations the authors say to the VCS that to be sustainable in the current operating environment means being clearer than ever about mission and using it as a practical tool; understanding one’s place in the bigger picture; and fostering a self-determining and outward-looking mind-set. They extrapolate messages from this to all those who can assist in this sustainability, including funders. 

UK corporate citizenship in the 21st century
Catherine Walker and Cathy Pharoah, The Centre for Charitable Giving and Directory of Social Change, 2012
While this short report looks at definitions of CSR and corporate citizenship it is also a good guide to the state of corporate giving to support the VCS. While individual companies are involved in imaginative partnerships with voluntary organisations, or have increased their giving, overall there are falling levels of cash donations and these are around 70% of the top companies’ community support portfolios in the UK, with the rest being in-kind. The report says that the lack of a universally accepted standard for reporting corporate giving makes measurement and benchmarking difficult. 

UK Giving 2011
CAF and NCVO, 2011
An overview by CAF and NCVO of charitable giving and philanthropy, ie who gives, how much they give, and what causes benefit. Largely based upon survey questions asked every year since 2004, it provides valuable insight into the habits of the UK's donors. They report that in 2010-11) the UK public gave £11 billion to charity. While an additional 1.1 million people donated money to charity, the average amount per month fell from £12 the year before £11. In real terms the total value of donations remained the same as the previous year and are now worth £900 million less in real terms than the amount given in 2007-8, the year before the UK entered recession. The report also has some coverage of which causes people support, the methods they use to give, and the use of gift aid.