Values of Philanthropy 13th ISTR Conference July 12, 2018 René Bekkers Center for Philanthropic Studies Department of Sociology VU Amsterdam

Counting philanthropy In the Netherlands… In Europe… …and across the world

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

The Philanthropy Matrix 3 levels: Antecedents Behaviors Consequences Macro Meso Micro

Defining philanthropy voluntary action for the public good Payton (1988) non-coerced transfer of resources to a collective enterprise Bekkers (2018)

Defining philanthropy voluntary action for the public good non-coerced transfer of resources to a collective enterprise

Defining philanthropy voluntary action for the public good non-coerced transfer of resources to a collective enterprise Time, money, body, networks, rights, data

Defining philanthropy voluntary action for the public good non-coerced transfer of resources to a collective enterprise …which may be a club good, an advocacy organization, not even an organization, a social enterprise, a social impact bond, foundation, or a traditional ‘charity’

Economic value: US and NL

Economic value: Europe …at least

Economic value: Europe Philanthropy ≈ mugs & tea towels

Economic value: Netherlands Philanthropy ≈ sugar & garbage

Beyond GDP The value of philanthropy is not so much in its economic value. It tells us something about human nature. Philanthropy relies on capacities that other species are believed not to have: higher level cognitive functions that allow us to think ahead, foresee the consequences of our actions for others, and reason through multiple chains of causes and effects.

Antecedents: US mz twins This twin is 3 steps higher educated than his/her sibling, and giving $7,000 more Lower educated, but also giving more Higher educated, giving less Lower educated, giving less

Antecedents: US mz twins More actively religious = giving more

Taxes and giving: US and NL

Government and giving: US

Government and giving: global Excluding US: r = .01

Taxes and giving: Europe

What makes people give? People give more (often) when There is a clear need need They are being asked solicitation Costs are lower, and benefits are higher costs/benefits They care about the recipients altruism They receive social benefits reputation They receive psychological benefits self-rewards The cause matches their values values Donations are perceived to be efficient efficacy www.understandingphilanthropy.com

Where’s the altruism? People give more (often) when There is a clear need need They are being asked solicitation Costs are lower, and benefits are higher costs/benefits They care about the recipients altruism They receive social benefits reputation They receive psychological benefits self-rewards The cause matches their values values Donations are perceived to be efficient efficacy www.understandingphilanthropy.com

Where’s the altruism? People give more (often) when There is a clear need need They are being asked solicitation Costs are lower, and benefits are higher costs/benefits They care about the recipients altruism They receive social benefits reputation They receive psychological benefits self-rewards The cause matches their values values Donations are perceived to be efficient efficacy www.understandingphilanthropy.com

Where’s the altruism? People give more (often) when There is a clear need need They are being asked solicitation Costs are lower, and benefits are higher costs/benefits They care about the recipients altruism They receive social benefits reputation They receive psychological benefits self-rewards The cause matches their values values Donations are perceived to be efficient efficacy www.understandingphilanthropy.com

CROWDING-OUT EFFECT: EMPIRICS Experimental studies: -0.64 Non-experimental studies: +0.06 De Wit, A. & Bekkers, R. (2016). Government support and charitable donations: A meta-analysis of the crowding-out hypothesis. Journal of Public Administration Research and Theory, 27(2): 301-319, https://doi.org/10.1093/jopart/muw044

Fundraising advice You can raise more by… Clearly describing the need need Make the ask solicitation Lower costs, give perks costs/benefits Appeal to empathy altruism Make gifts visible to others reputation Make donors feel good self-rewards Identify the values in your mission values Describe gifts as more efficient efficacy www.understandingphilanthropy.com

Influence of fundraising You change donor motivation by… Clearly describing the need need Make the ask solicitation Lower costs, give perks costs/benefits Appeal to empathy altruism Make gifts visible to others reputation Make donors feel good self-rewards Identify the values in your mission values Describe gifts as more efficient efficacy www.understandingphilanthropy.com

What virtues could we demonstrate in giving? Maimonides: Ladder of Charity Giving out of pity Giving willingly, but inadequately Giving after you are asked Giving before you are asked Giving publicly to an unknown recipient Giving anonymously to someone you know Giving anonymously to an unknown recipient Giving a gift loan or enter into a business partnership with the poor

Virtue: intrinsically motivated action Maimonides: Ladder of Charity Giving out of pity Giving willingly, but inadequately Giving after you are asked Giving before you are asked Giving publicly to an unknown recipient Giving anonymously to someone you know Giving anonymously to an unknown recipient Giving a gift loan or enter into a business partnership with the poor

Virtue: respect Maimonides: Ladder of Charity Giving out of pity Giving willingly, but inadequately Giving after you are asked Giving before you are asked Giving publicly to an unknown recipient Giving anonymously to someone you know Giving anonymously to an unknown recipient Giving a gift loan or enter into a business partnership with the poor

Virtue: anonymity Maimonides: Ladder of Charity Giving out of pity Giving willingly, but inadequately Giving after you are asked Giving before you are asked Giving publicly to an unknown recipient Giving anonymously to someone you know Giving anonymously to an unknown recipient Giving a gift loan or enter into a business partnership with the poor

Virtues of Philanthropy

How virtuous is your giving? Chastity, purity: Are we doing enough to prevent abuse? Temperance, moderation: Are we giving enough? Diligence, persistence: Are we having a real impact? Patience: What is a realistic horizon for change? Kindness: Is our giving motivated by envy? Humility: Is our pride in giving humble enough?

How virtuous is your giving? Chastity, purity: Are we doing enough to prevent abuse? Temperance, moderation: Are we giving enough? Diligence, persistence: Are we having a real impact? Patience: What is a realistic horizon for change? Kindness: Is our giving motivated by envy? Humility: Is our pride in giving humble enough? Risk: Are we gambling enough? Trust: Are we trusting enough?

Does giving make people happy? Donors Intermediary organizations Recipients

Does giving make people happy? Donors €  Intermediary organizations grants programs Recipients

Happy givers € 

Happier keepers € 

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An increasingly important question Donors €  Intermediary organizations grants programs Recipients

Optimism will help us One: for the love of one mankind. An integrating force, binding people, making society come together. The common fate we have as a species. The fate we share as humans with all living creatures on this planet. Philanthropy is the promise of a better future. It is up to all of us to deliver that promise.

E-mail: r.bekkers@vu.nl @renebekkers www.giving.nl Scan this QR code to get the full text of this lecture Or visit http://renebekkers.wordpress.com/inaugural-lecture E-mail: r.bekkers@vu.nl @renebekkers www.giving.nl