Giving, philanthropy and creating a democratic society. Cathy Pharoah and Tom McKenzie

Giving, philanthropy and creating a democratic society. Cathy Pharoah and Tom McKenzie

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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Giving, philanthropy and creating a democratic society Cathy Pharoah Tom McKenzie 9 May 2013
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 What does democracy in giving mean for society?  giving is spread between causes according to donor-market demand  giver population represents the wider population  giving itself redresses imbalances of power, wealth, and responds to need  giving funds advocacy for a democratic society (Sanghera, 2012)  through tax reliefs government yields spending power to citizens and promotes pluralism
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Representing the population  Spending power  Age  Household type  Population trends
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 01020304050 percentageofhouseholdsdonating 0 20 40 60 80 100 expenditure percentile 1978-1982 2004-2008 Participation in charitable giving in the UK
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 020406080100 cumulativepercentageoftotalspending 0 20 40 60 80 100 cumulative percentage of households y = x 1978-1982 2004-2008 Lorenz curves for expenditure in the UK Change in the distribution of money
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Participation and children 05101520253035 proportiondonating(%) 1978 1983 1988 1993 1998 2003 2008 year households without kids households with kids
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Amounts and children 0246810 2010poundssterling 1978 1983 1988 1993 1998 2003 2008 year households without kids households with kids
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Generosity, age and children 0.511.522.53 donations,%ofexpenditure 1978 1983 1988 1993 1998 2003 2008 year 21-40, no kids 41-60, no kids 61+, no kids 21-40, kids 41-60, kids 61+, kids
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Representation of household types among donors 01020304050 percent one person lone parent married couple cohabiting couple other multi-person donors population Note: Pooled data for England, 2001-2011.
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Representation in terms of amounts donated 01020304050 percent one person lone parent married couple cohabiting couple other multi-person donations population Note: Pooled data for England, 2001-2011.
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Household types: estimates and projections for England, 1971-2031 Source: ONS population projections, table 402.
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Distribution between causes
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Proportions of donors to a cause and of money donated Source: UK Giving 2012, CAF/NCVO
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Charitable bequests by cause and gender Selected cause % estates with bequest % estates with bequest Animal 28 20 Worship 28 23 Physical Disabilities 16 13 Hospice/ hospital 26 24 Culture 6 8 Education 3 5 Ex-Services 5 8 Causes with similar proportions: Child welfare, rescue, medical research, nursing, overseas aid, cancer, elderly, environment, mental health Source: Atkinson, A et al. (2009) Charitable bequests and wealth at death in Great Britain, Working Paper A09/03, University of Southampton.
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Does giving have a ‘democratic deficit’? Is giving inherently democratic?  Giving by amount does not reflect majority donor preference  Giving population does not fully represent wider population, and gaps might grow  The nature of giving reflects rather than redresses imbalances of wealth  Donor tax reliefs increase citizen power, but not equally for everyone Does giving have the effect of increasing democracy and social justice?  Better-off donors only partially respond to democracy and social redistribution  Philanthropy is part of a pluralist society, but not inherently diverse or pluralist Could the contribution of giving to democracy and redistribution be increased?
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Role of tax reliefs  In the UK, policy on donor tax reliefs intended to promote a democracy of giving  Gift Aid initially for gifts of +£600 in single donation (Lawson,1990): threshold gradually lowered to widen access to tax-breaks  In 2000, New Labour Chancellor Gordon Brown abolished any threshold – ‘Instead of charity seen in the old way, the rich bestowing favours on the poor, I want a democracy of giving, where all those who can, help all those who can’t.’ (HM Treasury, 1999)  All gifts became theoretically eligible for Gift Aid (Finance Act 2000)  90% tax-effective giving today is through Gift Aid, used by +one-third of donors  Brown linked wider participation in giving with desirable redistributive effects
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Perverse incentives Why has tax policy not been more redistributive in its effects?  Increased uptake is largely due to promotion of Gift Aid by existing charities  Charities focus on gifts rather than potential givers when promoting Gift Aid  Perverse incentive for charities to narrow target markets  Tax-reliefs offer wealthier donors a greater incentive to give  Less well-off donors will not necessarily give more support to social needs
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013 Costs and opportunities in democratic deficit  Do people think philanthropy is important? – does giving reflect what people can afford or what they choose to give? Would/ could they give more?  Marginalisation of certain groups – less well-off, lone parents, co-habiting couples, one-person households (likely to increase) – failure to respond or failure in asking?  Collateral loss – donations, inclusion, ‘voice’, engagement – the additional qualities which giving can bring, and from which good causes might benefit  Giving focus on married couple households - proportion in population likely to decline, and giving constrained by costs of children  Social needs not getting enough support in time of prolonged recession  Could charitable tax-reliefs be used to better effect to address democratic deficit?  Encouraging altruistic, pro-social attitudes, and ‘voluntary redistribution’ – beyond behavioural ‘nudges’ for individuals to give
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  Giving, philanthropy andcreating a democratic society • Cathy Pharoah and Tom McKenzie • 9 May 2013