The cost of not giving.
Last week I was stopped in the street by a fundraising team and asked if I would consider entering a unique “paw -draw” to support a leading dog rescue society.
For a donation of just £1 a week, I would be entered into a lottery for a chance to win a weekly prize of £600. When I asked if existing regular donors to the charity would be eligible for this lottery, the team didn’t seem to know. As a dog owner I already knew the value of supporting this animal welfare organisation and have given regularly each month for many years. I politely declined the offer and as I walked on reflected on how ironic it was that charities now had to offer prospective donors the chance to win money, rather than just a chance to feel good in contributing to changing the world. Maybe the “dog-eat-dog” competitive world of marketing and selling has begun to influence the charity sector, maybe there is a new price tag on altruism.
So why do we give?
I’ve always been fascinated by giving; perhaps this stemmed from my early upbringing with my parents instilling in me to “Save 10%, give 10% and live off the rest.” This was their maxim, and like many of their generation who saved and gave, they “walked the talk” even into their 90s. Did this policy influence me as a young child? It’s hard to know but given the fact that I have spent most of my life running charities and trying to persuade other people to give, I suspect it did. But what incentives do today’s youth need in order to give? Are the gambling “play to win” messages so prevalent on TV adverts and betting shops now influencing how, when and why we choose to give? Is there still such a thing as giving without reward?
What my parents knew in their heart, most of us now know in our heads; that there is a reward and value in giving. Indeed studies show that giving improves our mental health and happiness. Sonja Lyubomirsky, professor of psychology and the author of the best-selling book The How of Happiness has shown that practising acts of kindness gives people a happiness boost. Even those merely observing an act of kindness or generosity feel better because of the act.
And she is right, last month I found myself smiling when I heard that the billionaire, Robert F. Smith, had surprised his audience of students at Atlanta’s Morehouse College with the announcement that he was going to pay off all of the 2019 students’ debt. “On behalf of the eight generations of my family that have been in this country, we’re gonna put a little fuel in your bus,” he said to the class of 2019. “And my family is making a grant to eliminate your student loans.” The price of this ‘fuel’ was later estimated at around $40million!
Then there is Dr Michael Seligman whose work at the University of Pennsylvania, has shown that positive emotions; optimism, pleasure and enjoyment, as well as the deep social connectedness, fulfilment, meaning in life and even a sense of achievement, can all be experienced through a single act of giving; whether it’s sharing a meal with a friend or donating a large or small sum to a good cause.
Random acts of priceless generosity
The great thing about generosity is that its currency comes in different sizes and guises and can have a knock-on effect. Some people can find creative ways to better embrace a giving mentality and promoting small acts of random kindness. Like the story of the man who always used to pay the 50c toll bridge crossing for the stranger in the car behind him on his daily commute to work just so he could see in his rear view mirror the look of joy and bewilderment on the face of the driver. Giving can be priceless, not just to the receiver but the giver too. Giving can be fun, and can make a phenomenal impact on our psychological well-being and, I would argue, can become a core factor of our success as individuals and societies.
Why then is it that whilst we know about the benefits of giving, and value the work being done by the non-profit sector, we are so poor at educating our children on the importance of, and future role that giving can have in their lives? Of course, this is part of a wider financial literacy agenda, which despite an All Party Parliamentary Group report on the importance of financial literacy in schools, and initiatives kick-started by the financial sector, remains largely under-valued and squeezed out of the school curriculum.
Can generosity be taught or caught?
All of which raises the question can this subject of giving be taught or is it best ‘caught’? As a society we are actually good at giving. According to studies, around 60% of the UK population say they give to charities each year and, along with Ireland, the UK is at the top of the European league table when it comes to citizens’ overall generosity. However, only an estimated 25% of us give to a charity through a regular monthly gift. This is particularly alarming because most of those who give through a regular standing order tend to be older people. Regular monthly donations are best for charities who can better plan for their expenditure, can claim back Gift-Aid, and keep their regular donors informed. There is also a better chance for encouraging those who have already shown commitment to the charity to give the ultimate donation — in the form of a legacy to the charity — when their monthly donation comes to an end.
But surely you can only give if you are wealthy and can afford to give? Yes and no, the same study which ranked the UK and Ireland as as 5th and 6th in the world in terms of citizen’s generosity, ranked Indonesia as the most generous at number 1. Previously the top slot was held by Myanmar. Both these countries are not exactly known for their high levels of GDP and wealth.
So what is the solution?
If older people who statistically give more are dying, how can we birth a new culture of giving among the young? Winston Churchill’s advice on the subject; “We make a living by what we get. We make a life by what we give” may have motivated a past generation and held the social fabric of its day together, but this advice seems a far cry from today’s youth who are told “We make a life by what we like.” Certainly, when it comes to online ‘likes’, peer-pressure and the ‘clicking’ on advertising messages convincing us that constant consumerism is normative behaviour. The social fabric of our society is one which has the best, coolest and most expensive brands stitched on it.
A revolution in edu-action.
We need a revolution and like most revolutions it has to start with action and like most change programmes it has to start young. At a time when the total pocket money given to children in the UK alone is increasing (up to £11.20 per child per week on average) and where the total spending power of UK children is £7,960 million per year, we have a unique chance to help shape spending and giving habits but only if we give young children in their formative years, a real-world giving and learning experience.
Enter crypto-currency: If blockchain technology and crypto-currencies can cause a disruption in the banking sector could a ‘give currency’ do the same for the sharing society? Make no mistake, children no longer like to learn simply through memorisation and rote learning, for them learning has to be real-world and relevant, interactive and fun. As in other areas of education we must transform teaching and helping children to move from passively listening and consuming content, to actively engaging and creating their understanding of the world. In this respect we need to develop what I call “edu-action” and promote learning by giving. Yes, you heard me, give children money so they learn to give, make choices and see the results of their investment and giving. Think not “crowd-funding” but a unique crowd-giving platform?
One organisation which has high ambition and could kick start this revolution is Give Nation. Focusing on the interconnection between money and purpose, Give Nation is helping children from 5 years upwards understand financial literacy and management of money through learning how to earn, save, educate themselves, play, give and invest towards the Sustainable Development Goals (SDGs). In the schools beginning to use Give Nation, — which includes schools in Kosovo, students have a chance to see how altruism can be used to demonstrate their empathy, compassion and impact in their wider community.
Arnaud Saint-Paul, Give Nation’s founder, says, “The problem is that helping teenagers understand financial literacy within a school context is ineffective because like other subjects on the ‘Citizenship’ agenda it is out of date and theoretical. Far better to actually focus on younger children who get pocket money and give them the agency and experience of helping others as soon as they are old enough to handle real money. It has to be fun, it has to be simple, it has to be easy to manage and it has to show results quickly. As with other tech revolutions, we can do this online and I believe that crypto-currency is the most important single development in philanthropy education.”
Innovating in the art of giving
The UK charity sector has been brilliant at innovating and finding new ways for people to give. Which other country could have come up with an initiative such as Comic Relief, or the world’s largest charity marathon event for sponsorship? Then there is the pioneering work that UK companies have made in online donations and giving by text.
Surely the challenge now is to develop tools and utilise technology which will inspire the next generation to be generous givers. For the benefit of those in need, for a growth in meaning and happiness for future donors, and perhaps most importantly, for the sustainability of our world, this could be the greatest gift we give.
