Spending smarter: data, philanthropy and social investment

by David Forsgate

I was recently reminded at a breakfast seminar on the topic of data and philanthropy, organised by Alliance Magazine, of some key points for those of us with an interest in social investment and giving.

The importance of data and proportionality

It is often difficult to get a clear picture of how much philanthropists give to different causes and how different sectors benefit from philanthropy. For example, a representative from The Goldsmith Family Foundation spoke at the seminar of the Environmental Funders Network’s recent efforts to publish data on where grants has been given to relevant green and climate change causes. It was highlighted that last year £95 million was spent on keeping two Titian paintings in the United Kingdom. In the same time less than half of that (£45 million) was spent on “Green Grants” and funding for the environment. A further read of the actual report shows that only 3% of UK philanthropy goes towards addressing environmental problems and that climate change funding, though increasing, still receives only 0.7% of total giving.

Can you measure the impact of investing in people?

The general consensus is still that we are still figuring out how to measure the impact of investing in people if but we know its important.

The obsession with scale: Continues

Those in the room agreed that though many in the philanthropy and social enterprise sector want to rapidly scale, we perhaps should be looking at the aggregation of marginal/innovative gains in each sector rather than the magic bullet fix.

It’s good to talk and share

The social enterprise sector is very well serviced through the number of regular set piece events, annual surveys and working groups created through a number of membership organisations and discussion forums in the social enterprise sector. On the other hand the seminar highlighted for me that foundations aren’t quite as networked with each other. The Association of Charitable Foundations expressed that it would be ramping up efforts for surveying its members for data and creating more working groups.

Funders could benefit from collective learning

Sharing honest success stories and failures is just as important as hearing about the triumphs.

Alliance Magazine remains a superb publication

No they have not paid me for this. The focus of the publication now takes into account social investment worldwide so if you are into philanthropy and social investment subscribe and get it on your desk. Essential reading on global social change and philanthropy.