In fundraising they say 20 per cent of the people contribute 80 per cent of the money, and when it comes to big projects, that can amount to a lot of loonies.
Multimillion-dollar gifts have helped hospitals erect new wings, build opera houses, open specialized schools in universities, and in the case of the Jewish community, construct a network of agencies that boggles the mind, as well as a sprawling new campus in what was vacant land not that long ago.
So what motivates the super-rich to write cheques in the millions of dollars for projects such as these and to select among the 86,000 non-profit organizations in Canada?
Chuck English and Mo Lidsky set out to find the answer. A few weeks ago, they released the results of their research in the form of a new book titled, The Philanthropic Mind. The book features interviews with close to 50 big givers, each of whom made at least one donation greater than $1 million.
Many of the profiled philanthropists are familiar to the Jewish community. Some have headed UJA fundraising campaigns. Others have given to Jewish causes and those in Israel. Among the notables in The Philanthropic Mind are Joe Lebovic, Seymour Schulich, Izzy Sharp, Lawrence Bloomberg, Linda Frum and Howard Sokolowski, Gerry Schwartz and Heather Reisman, as well as Ed and Fran Sonshine.
About 60 per cent of the philanthropists cited in the book are Jewish, leading to the inevitable question: what is it that makes Jews particularly generous?
Well, “among Jews, there is a strong tradition, a strong heritage for the idea of tzedakah,” said English, a consultant to businesses and not-for-profits. “Almost all the people we talked to said their parents and grandparents shaped their giving inclination.”
The principle of tithing is part of the Jewish heritage, even among assimilated Jews, added Lidsky, a principal at Prime Quadrant, an investment research and consulting firm. In addition, over the years Jews have had to create their own communal infrastructure, “and that has lots of pieces. Jews have lots of organizations” with plenty of boards to run and projects to conceive, fund and build.
Referring to the plethora of “Friends” groups in the Jewish community, which support charities in Canada and Israel, Lidsky said you don’t find that kind of extensive infrastructure in other Canadian communities. “It’s so central to who we are and what we do.”
Of course, Jews are not the only people with a sense of community responsibility who are profiled in The Philanthropic Mind. Others include Tony Comper, Donald Johnson and Richard Ivey.
English said for both Jews and non-Jews, “their parents established for them an example of giving. In many cases, it was direct service giving,” such as doing volunteer work. “Most came from families that were philanthropic in spirit. Clearly that was something that was ingrained. Many felt fortunate to enjoy their success and felt an obligation to give back,” he said.
“Philanthropists are almost wired to give,” Lidsky said. “They want to give, so much so, that if people penetrated the barriers they need to put up, they’d have a hard time saying no.” If you get the meeting, he added, “you’re 90 per cent there.”
Over the course of their research, English and Lidsky uncovered several findings that would interest staff at not-for-profits, fundraisers and other potential purchasers of the book. One focuses on the changing demographic of big givers. Second generation philanthropists increasingly are demanding accountability in how the money is spent. They don’t simply want to write a cheque. They want to see results.
“The sense we got is that second generation philanthropists tend to be more selective.” Many have inherited the wealth and feel they are its stewards. Plus, when they attach their name to a cause, they want to be sure the money is well spent and the charity accomplishes its stated goals, Lidsky said.
There’s even an important psychological benefit to giving away one’s wealth. English found big givers “want to feel passionate about things and feel part of something.”
Their research backed up that finding. The authors cite psychologists Netta Weinstein and Richard Ryan who found that giving energizes the giver when it’s done with passion and joy. It provides them with “a sense of fulfilment and empowerment,” the researchers found.
There’s no similar psychological benefit when giving is done through a sense of duty or obligation.
