The curious gift(s) of Giving #22
Where in life do you get more than you give?
Hello friends,
Before I begin, I’d like to make a shout out to the man who inspired the title of 1000Weeks, Oliver Burkeman. Oliver has a new book ‘Meditations for Mortals: Four Weeks to Embrace Your Limitations and Make Time for What Counts’ launching on the 12th September. If it’s anything like 4,000 Weeks it will be a must read. I’ve pre-ordered mine. You can do so here.
Are you sitting comfortably? then I’ll begin :-)
Who gets irritated by 'chuggers'?
Those happy, smiley, flattering individuals who are there just when you’re dashing out at lunch time to grab a sarnie, running late for a meeting or ringing your doorbell as you settle down to eat. I got chugged yet again on Saturday, waiting for a friend at a tube station, and yes, I gave.
My bank statement is a catalogue of ‘chugged’ experiences. All worthy organisations but…am I giving because I want to or out of guilt, shame or pity?
The domain of the super rich?
Philanthropy, or Giving, is a massive subject. I’ve never related to the term philanthropy, not just because it’s a tongue twister but because I thought philanthropy to be the domain of the super wealthy.
Spoiler alert.
It isn’t. In fact, as a percentage of earnings, those who earn less give more, even if the wealthy give more in absolute terms1.
And giving doesn’t need to be money. Giving time, volunteering, is also a form of philanthropy.
I believe philanthropy is set to be the new areas of focus for the better financial planning firms. Some may say, in a ‘turkeys voting for Christmas kinda tone’, “Why would a financial planning firm that makes its money from accumulating assets encourage their clients to give money away?”
Because it’s the right thing to do.
You get more than you give
Philanthropy, it seems, is a secret elixir:
The giver gets to feel good about the act of giving, whether that be the impact they’re making, the person or cause they’re supporting, the sense of ‘giving back’ to people or organisations that helped them, or creating a legacy.
Giving increases happiness levels, provides greater life satisfaction, improves mood and reduces stress.2
The giver may also get tax relief (income or capital gains) against their gift but interestingly, this is a low motivation for the majority when deciding to give.
The charity gets money to use to support its purpose.
And the financial planner can feel that they are playing a part in the achievement of good rather than the rather benign act of just increasing someone’s wealth.
Who wouldn’t ‘pay’ for that?
I was wrong
My misunderstanding of the motivations of (most) people was bought into sharp focus a week or two ago at Paradigm Norton’s3 Summer Team Day.
Amongst the company updates, duck herding and team games we had an excellent talk from philanthropy adviser, Emma Beeston. As well as advising individuals and families on their giving strategies, Emma is on a mission to reclaim the word philanthropy for all. I think she’s right.
I was reminded of my days as a financial planner. I found philanthropy conversations tricky most of the time. Why? For some ridiculous reason I had it in my head that asking clients about giving might be perceived as:
Judgy
None of my business
Rude
Preachy
Not my job
Plus, perish the thought a client said they did want to explore philanthropy, I barely knew where to start.
I was wrong.
Turns out clients actively want to be asked about giving. They want to know how much they can afford to give. They want to be helped in their decision making process to find and support causes that align with their beliefs and values4. They want to give because it aligns with what’s important to them, not through a ‘chugged’ sense of guilt.
What do you think?
How about you, I’d like to learn from you. I’m still working this out.
How do you think about philanthropy? How do you decide what causes you give to? Do you prefer the idea of giving to achieve direct impact or longer term change? Do you go local or global? Small or large? Does your financial planner discuss this with you?
What are you, and I, waiting for to think more about giving? Afterall, the causes who would benefit are not going away and we’ll never be any younger than we are today.
Do drop me a line, I’d love to hear from you. Let’s learn together.
Until the next time my friends,
Ruth x
For more information take a look at the 2024 Charities Aid Foundation Giving Report
I am a Non Executive Director at Paradigm Norton
Source: U.S. Trust® Study of High Net Worth Philanthropy – 2018
I hear your point about not wanting to appear ‘judgy’ as a planner by bringing it up - particularly in the early innings of a relationship.
I would never want to feel someone compelled to do something based on a topic that I bring up - see also ‘ethical’ investing.
Nonetheless, we all have clients with an excess of capital who have no hope of spending it. Giving in some form is the only answer.
A really interesting topic. The word 'philanthropy' has become quite disingenuous + a bit of a turn off, it's too lofty and exclusive-sounding for me. And if I was to say I want to be philanthropic I'd worry it suggests I have hundreds of millions to bestow. If only! In reality I'd rather give away 100 GBP ten times a year to a cause where I can have an immediate impact/relief, than give a thousand a year to a large charity. 'Grassroots giving' - the new philanthropy?