Wealthy entrepreneurs and business leaders who are less risk-averse and more nimble than governments will help solve the world’s biggest issues in coming decades, according to two philanthropy experts.
Matthew Bishop and Michael Green, the authors of Philanthrocapitalism, are touring Australia this week, conducting forums for philanthropists and not-for-profit organisations (NFPs) to discuss the big challenges faced by society and the role philanthropy can play in inspiring solutions.
According to the authors, Philanthrocapitalism is a new way of doing good, mirroring the way business operates in the for-profit, capitalist world.
“Philanthrocapitalists can do the risky, innovative things that government cannot, to find new solutions to longstanding and unresolved problems,” Mr Bishop said.
“Entrepreneurs don’t just want to write cheques; they want to be hands on, bringing innovative ideas to scale by investing their time and energy.
“The same applies for social entrepreneurs – philanthrocapitalism describes the growing belief amongst the winners of capitalism that giving back is an integral part of being wealthy.”
Mr Bishop and Mr Green will draw on insights gained from their interviews with some of the most powerful and influential people on the planet, including Bill Gates, Richard Branson, Angelina Jolie and Bono, as they speak to Australian philanthropists and NFPs this week.
“Although the book focuses on wealthy donors, it is not just or even mostly about the rich. Instead, it uses the rich as a lens to look at how society is changing the way it solves its biggest problems, by bringing together business, NFPs, governments, social entrepreneurs and philanthropists in innovative partnerships,” Mr Green said.
UQ Vice-Chancellor Professor Paul Greenfield said the University was co-hosting the authors’ tour because its own experiences had proved the transformative power of strategic giving.
“Strategic philanthropy has enabled UQ to dramatically increase its capacity to contribute to global problem-solving and offer life-changing education to young people from disadvantaged backgrounds," Professor Greenfield said.
“Now is the ideal time to prompt an Australian conversation about philanthrocapitalism, not only because collaborative philanthropy can make deep inroads into national problems, but also because magnanimous Australians are starting to talk more openly about their generosity.
“They are not 'big noting' themselves; instead they are rallying their peers to join a millionaires’ revolution that will stimulate improvements in health, education, poverty, the environment, food security and other areas."
According to Perpetual and The University of Queensland (UQ), hosts of the Philanthrocapitalism events around the country, the way people give in Australia is changing.
The Charities Aid Foundation reports that Australians give much less than Americans; as a percentage of GDP, we give 0.69 per cent, which is less than half of America’s proportional contribution.
“Obviously, not everyone can make individual multi-million dollar contributions,” said Mr Andrew Thomas, Perpetual’s General Manager of Philanthropy.
“But it is clear Australia needs a more concerted giving effort, and local philanthropists can learn a lot from the big players.”
Mr Thomas said that philanthropy in Australia would move away from a "drop and run" donation in the future.
“Philanthropists are beginning to put more thought into how to give in a meaningful, sustainable way," he said.
"They are also becoming more selective in who they give their money to, and why.”
According to Mr Thomas, NFP organisations are aware of the need to become more transparent about where they direct their funds and how productively these funds are being deployed.
“The economic crisis and a subsequent drop in donations served as a wake-up call for many NFPs.
"They are now looking to incorporate more business-minded strategies to attract investment and demonstrate their efficiency and effectiveness,” he said.
Mr Thomas said the philanthrocapitalism forums would be eye-opening for many NFPs who are still struggling to acquire funding.
“A big problem for NFPs is that they try to do too many things at once," Mr Thomas said.
"Most NFPs in Australia are relatively small and struggle to make a sustained and telling impact.
"But the philanthrocapitalism mindset being presented this week will help them expand their thinking and seek smarter ways of making a clear contribution to wider efforts to drive societal change for the good."
The authors of Philanthrocapitalism will visit Brisbane, Sydney, Melbourne and Perth between 7-14 March, conducting two forums in each city for philanthropists and NFP organisations.
Media interested in speaking with the authors of Philanthrocapitalism or attending the NFP forums should contact Kathy Grube at 0418 524 297.
Event Details:
Brisbane - Monday 7 March; 3 – 4.30pm
Sydney - Tuesday 8 March 3 – 4.30pm
Melbourne - Thursday 10 March - 3 – 4.30pm
Perth - Monday 14 March - 10.30am – 12pm
About The University of Queensland
The University of Queensland (UQ) is one of Australia’s premier learning and research institutions. The Federal Government's 2010 Excellence in Research for Australia assessment, released last month, confirmed the quality and breadth of UQ's research places it amongst the top two universities in the nation.
UQ is a pacesetter in discovery and translational research across a broad spectrum of exciting disciplines, ranging from bioscience and nanotechnology to mining, engineering, social science and humanities.
UQ offers undergraduate and postgraduate programs that are informed by the latest research and delivered in state-of-the-art learning spaces. UQ teachers have won more Australian Awards for University Teaching than any other Australian university.
Today, UQ has almost 44,000 students who study across its four main campuses in southeast Queensland. Staff and students from more than 134 nations are valued in its multicultural community, which celebrates excellence in all aspects of scholarship.
For further information go to www.uq.edu.au
About Perpetual
The Perpetual Group is one of Australia’s most experienced investment and trustee groups, with an enduring passion for protecting and growing our clients’ wealth.
Founded in Sydney in 1886, we have helped generations of Australians invest and manage their wealth through all market conditions.
The Perpetual Group manages investment funds exceeding 19.49€ billion, administers over 144.4€ billion of client funds, and advises clients on over 5.78€ billion of investments (as at 31 December 2010).
It ha salso helped individuals, families and companies contribute to the health and well-being of others through philanthropic endeavours. Today, Perpetual is one of Australia’s largest managers of philanthropic funds, including acting as0.87€ trustee for over 450 charitable trusts with over billion in funds (as at 31 December 2010).
For further information, go to www.perpetual.com.au/philanthropy
