The Business of Philanthropy: Intermediaries have the skill to help give
The Financial Times, 7/5/07
Most banks are keen to hold on to their clients’ money in order to generate fees. Mark Evans instead devises ways to help his customers give theirs away.
When he joined Coutts in London two years ago as a private banker, he exploited a gap in the UK market for philanthropy services that his previous employers at Citigroup and JP Morgan had met in the US. In mainland Europe, its chief proponent was UBS in Switzerland.
All of these institutions – and a growing number today in the UK such as Barclays – are developing philanthropy practices.
“We recognised that there was a demand,” says Mr Evans. “The wealthy are getting wealthier, people are living longer, and they see the importance of a sense of purpose. They are thinking twice about giving everything to their children, and are realising they get tremendous enjoyment from giving money away while they are alive.”
The array and diversity of intermediaries to assist donors in making their choices has mushroomed.
Some, like the private banks and some asset management groups, offer philanthropy alongside other more mainstream financial services, reflecting a growing interest by the wealthy in giving money away in more sophisticated ways.
A few of the wealthiest philanthropists may create their own free-standing foundations. But for most donors, there is a growing range of bespoke services they can use. The Philanthropic Initiative in Boston says it has helped design programmes and direct $1bn over the past 18 years from companies and individual donors. “Very large amounts of money can overwhelm and it’s hard to spend smartly,” says Joanne Duhl, vice-president.
Melissa Berman, head of Rockefeller Philanthropy Advisers, which has 40 staff in offices in New York, San Francisco and California, stresses the benefits of seeking external help, which has allowed her group to recruit 150 clients and steer $135m in grants.
“We can help with site visits, identify appropriate grantees and structure grant agreements,” she says. “Donors may want a buffer between them and a non-profit to ask the difficult questions.”