Burning Man - what a fundraising opportunity! Geronto Philanthropy in Action?

Sorry for the long absence. I've been "off grid" for three weeks in the middle of the Nevada Dessert.

It's an annual festival attended by 70,000 mostly white, middle class Californians and demonstrates, some would say, an amazingly philanthropic attitude. Below is a photograph of the artwork I helped to build, funded incidentally by a grant from the organisers - who claim to be one of the biggest US grant makers helping new works of sculptural/architectural merit. The other funding came from a Kickstarter request - crowd funding in operation and working quite well.

The really interesting thing though is that the whole week long festival operates on a "gift economy." That is once you've paid your 800 bucks or whatever, for your ticket, all the camps, cafes, bars and events you visit are completely free. Drinks, food, whatever! What's more it seems to me that the whole thing is run by and (largely) for baby boomers. There are, of course, people of all ages there. However the predominant feature is of grey beards and kaftans (or in the extreme, a naturist garb).

So what's going on? Millions of dollars raised and spent on art and promoting an amazing experience. Yes lot's of reciprocity and some enlightened self interest. I think however there's quite a bit of altruism going on. Take a look at the site and let me know what you think.

Maybe it's just an extravagance but perhaps there is something for fundraisers to learn from?

The fundraising outlook for 2013

So you survived the apocalypse. Now what the hell do you do? I liked the Shamen on the beach in Lima warding off the impending EoTW* that's the bet to take. I have a colleague, Professor Bruce Lloyd, a very erudite fellow at LSBU who does a lecture to my students every year on "Forecasting the Future" so if you want to know what's going to happen, just ask Bruce. In reality, of course, he reminds us that nothing is certain but some things are more certain than others. So it's a question of balancing risks and asking the right questions. Let me know if you'd like a copy of his last session it is worth thinking about.

So 2013 is upon us what is the outlook for fundraising in the UK? Double or triple dip resession looks horribly likely. The government's retreat from the Big Society continues. A lot of the cuts have not yet hit the proverbial fan. From April onwards I predict a steady stream of charities and groups going out of business or, at best, merging with others who are struggling. Some larger charities will be able to help out (National Trust to bail out the English Heritage Blue plaques for example?) but they themselves are at risk of beign squeezed by the bigger commercial providers of contract services.

What's more whilst there are some individual winners the predicted rises in legacies is yet to happen as the baby boomers really do try and live forever (or at least til beyond 2020). So there is still time to get a legacy strategy sorted. And I mean a real strategy with a vision that will appeal to the baby boomers and not more of the same old,same old.

Doing a session at the Institute of Fundraising Consultants Group in the afternoon of the 30th January at the DSC so come along if you'd like to hear more of my Cassandra and EoTW* predictions plus a couple of nuggets that I think could be gems in 2013.

Meanwhile may 2013 bring you everything that you've worked your fundraising socks off for. What's more, if you don't believe we've got to work even harder have a look at what NfP Synergy is saying about trust and confidence and be very afraid!


*End of the World

Happy New Year (or is it?)

Last year I posed the question where are the baby boomer philanthropists? Bingo the New Year honours list has 14 according to Howard Lake at Fundraising.co.uk. This list includes Doug Ellis and Paul Ruddock as well as my old Cranfield mate Mike Bear (now Sir Michael - so many congratulations!)

Perhaps most notable of these good doing generally baby boomers is probably Gerald Ronson for his (reported by Civil Society) £100m fundraised for charity (and £30m donated!) after a spell in prison in the 1990s. This is a bit reminicent of John Profumo who, (after the Christine Keeler scandel) spent many years working in the East End for Toynbee Hall. Maybe redemption (or the pursuit of) is something we all begin to think about as age beckons. I for one have certainly started thinking about these things far more since hitting 60. So what lessons are there for fundraisers?

Well don't assume we've all found god. Giving motivation is (as I'm discovering) fiendishily complex and anyone who says otherwise doesn't have a clue. I think fundraisers have to start with themselves! How generous we we? And why do we give (or not)? Know thyself (which according to Wikipedia Diogenes attributes to Thales) and you might begin to know Mankind (according to Alexander Pope). More insight and introspection may not make for a happier New Year but it will definitely help your fundraising.

What did the Baby Boomers ever do for us? Part two

Isn't it Interesting? The UK Giving Report for 2011 shows giving back to 2009 levels, though with more people giving a bit less. The comparisons with the US however are really revealing. In the UK CAF reckon around 60% of adults give to charity whilst in the states it's nearer 80% according to the Chronicle of Philanthropy. This reflect the almost straight line negative correlation some of our LSBU research showed between giving in the USA, UK and Denmark against comparitive overall tax rates!

However what is even more interesting (and depressing) is the role of the Baby Boomers in all this. As one of that self obsessed generation I had thought that we're nice socially minded, philanthropic individuals. As Francis Beckett pointed out however, when I took him to task over his critique of this generation, where are the seriously wealthy philanthropists? In the US the top decile give over 2% of their income. In the UK it is less than 1%. What's worse, whilst Cathy Pharoah points to the 100 donations of £1m plus where are the English (or Scottish, Welsh, Northern Irish) equivalents of Bill Gates? Gates, along with Warren Buffet is trying to persuade the seriously rich to give 50% of their wealth to charity!

In the UK the likes of Richard Branson, Alan Sugar, Felix Dennis,Philip Green, Nicky Oppenheimer and Andrew Lloyd-Webber are seen giving a bit to charity but pledging 50% seems a giant step too far for them. So is Francis Beckett's premise right? Are we not only wastrels but bloody mean with it?

What did the Baby Boomers ever do for us?

Meeting Francis Beckett tomorrow so do you have any questions for him? His thesis is that the self obsessed generation took the money and ran, with little regard for the consequences. He might be right. A lot of my friends have made a lot of money in property and financial services. On the other hand there are quite a few Gen X successes with computers and the internet, not to mention Gen Y and professional sport. I think what is really interesting (if sad) is that that the gap in the distribution of wealth is widening not shrinking.

Philip Beresford has commented that when he started doing the Sunday Times Rich List 25 years ago, 85% of the wealth was inherited. Today 85% is first generation. People are creating fortunes rather as they did at the end of the 19th Century and there are perhaps some more rather disturbing parallels.

Unfortunately, as Wilkinson and Pickett comment in The Spirit Level,happiness and good health lies with reduced wealth gaps and greater equality in distribution. Its a good read and very worrying that the UK is moving in the wrong direction. I'm not however convinced that it is all the fault of the baby boomers. The banking problems for example started with Reagan and Thatcher, both Seniors or members of the Silent Generation!

Watch this space and let me know if you think Beckett's got it right?

Letter to the Prime Minister from the Boomers

I'm not usually one for passing on the jokes that go round the internet but this, far from a joke is, a mon avis, a perfect example of the application of Keynsian economics and, although some of the maths is wrong, might just work. Being a boomer and of the 10 million I rather like it:


Dear Mr. Cameron,

Forget the Big Society and instead, implement this suggestion for fixing Britain's economy.

Instead of underwriting a hundred billion to the banks that might well squander the money on lavish parties and unearned bonuses, use the following plan.

You can call it the Boomers Retirement Plan:

There are approximately 10 million people over 50 in the work force.

Pay them £1 million each severance for early retirement with the following stipulations:

1) They MUST retire - 10 million job openings - unemployment fixed

2) They MUST buy a new British car (if there any) - 10 million cars ordered - Car Industry fixed

3) They MUST pay off their mortgage (or buy a house if they're renting) - Housing shortage fixed and the building societies will have money to lend to first time buyers.

4) They MUST send their kids to school/college/university - Education and maybe even crime rate fixed

5) They MUST buy £100 WORTH of alcohol/tobacco a week ..... and there's your money back in duty/tax etc plus they won't live for another 20 years needing the NHS and social care.

Power to the grumpies (fundraisers or whatever)

Venture Philanthropy - Whither Goest?

Interesting to see that Scope are the latest charity offering an investment opportunity to venture philanthropists. According to Third Sector, The Grangewood Venture Philanthropy Project involves supporters making donations of £2,800, supplemented by £700 of Gift Aid, and an interest-free loan of £7,000, to be repaid through the sale of the charity's existing property over three years. This is a harder edged offering to the really innovative Crisis Urban Investors package but never the less is worthy of consideration. As is, of course, a straight investment in Charity Bank which spends its time persuading risk averse charities to borrow money!

Something we could all bear in mind is that most of the Venture Philanthropists are, yes you've guessed it, Baby Boomers! We've made our money and are now willing to invest it (well some of it) in changing the world.

Midi Akerwusi describes Venture Philanthropists as: risk takers, calling the shots, fast decision makers, innovators (not sustainers),results orientated and, most importantly, ALWAYS RIGHT. Describes the boomers to a tee. So when you're thinking about innovative fundraising, major gifts and how to tap into this whole thing about "social enterprise and venture philanthropy" think - class of '48 the luckiest generation ever (according to the Observer). Then make your plans accordingly.

The secrets of research

Whilst at an RNIB event today I was asked about my role as a "Social Scientist" - since, of course, fundraising research falls into the academic displine of social science. I explained that whilst Cathy Pharoah takes a, largely, quantitive approach, I am strictly a qualitative sort of guy. As Dr. Frank Bryant in "Educating Rita" says, "You've got to get your ontological position right!"

In other words it all depends on what you base your beliefs - where you are coming from in terms of your outlook. So, with a new budget bashing the seriously wealthy (effectively a 70% marginal rate of tax over £100k of net income)will well healed boomers be minded to give more to charity rather than let Alistair Darling have it? And of course, it all depends on your ontological position!

So if you are already having a conversation with a boomer who has a shedload of money and s/he is minded to support your particularly wonderful cause, then yes you need to have a very serious conversation about gift aid and marginal tax rates. But to run a campaign to "give us your money rather than the treasury?" I think not. But then again I'm the dude who tipped Imperial Commander on the morning of Friday 19th March. I wouldn't however bet against Kauto Star as I've won a wad on him a couple of times. Result no bet at all and Imperial Commander wins the Cheltenham Gold Cup at 6 to 1! Wrong position again. Do as I say not as I do.

Fundraising Research takes centre stage

Well, take a bow Lindsay Boswell. Following his resignation from the CASS advisory group he's calling for a think tank to try and innovate, set an agenda, and stimulate some useful fundraising research. Don't like to say I told you so (actully I do), but I did. In 2003 I published research showing we dramatically underinvest in marketing research. Compared to the commercial sector who spend up to four times what charities do, we generally invest less than 0.5% of income on useful marketing research.

Anyone who's heard any of my lectures knows this is a pet hobby horse. If we want help we've got to start helping ourselves. I'm looking at major donors, regular givers, baby boomers, legacy developement and good practice. But, even I can't do it all. Going to the Institute's meeting in February so please, please me and tell me what you think we need to be looking at.

Reasons to be cheerful, one, two three (with apologies to Ian Dury)

So things are going to get much worse (Third Sector 3rd November)! Joe Saxton rightly points to probable deep cuts in government funding in three years time. Stephen Bubb thinks it'll be sooner (After the election feels like a safe bet).

So that's the doom, gloom and Cassandra predictions and they are probably right in as far as they go. But it's not the whole picture is it? And fundraisers, more than most, are able to buck trends, be creative and tap new sources of income.

Hurrah! The Boomers are coming. From 2012 (post the Olympics just a 1000 days)the baby boomers are going to start dying in big numbers. In fact people are going to be dying who have never died before. As a boomer I'm entitled to be bloody grumpy. As a fundraising I have to keep telling charities to invest in legacy development (sorry thats "a gift in your will" The whole bit - and some of these are Joe's own numbers, about the boomers holding 85% of the UKs wealth is mind boggling. Events, investments, social enterprise, tribute funds, the list actually is endless.

So stop winging and start doing some strategic planning - a four year window looks good.