OPINION:Philanthropic and Government money can be combined to change society for the better
ENLIGHTENED PLANS to reform social services are sitting on shelves in many Government departments, starved of funds. The rich and successful can rescue them from the shelves, make them a reality and change society for the better.
I’m talking here about strategic philanthropy, not charity. An impulsive donation can make a difference to someone today. But a strategic donation can leave a legacy of difference that will reach generations to come.
Here is an example. Thousands of people receive services while unnecessarily living in institutions, isolated from society, because they have disabilities, mental health problems, dementia or other difficulties.
Government policy is to move towards more community care and less inpatient treatment.
But before you close old-style institutions you need to set up supports in the community first. And that requires investment in the short term – a kind of bridging finance.
This is where philanthropic funding comes in. In projects around the country philanthropic and Government money have been combined to help people to live in the community.
So far, in partnership with the public sector, philanthropy and non-profit service providers, we have supported over 400 people in moving out of institutions or becoming more independent in the community. Four pilot projects have been established to develop services that will help many people with dementia to live in their communities.
This saves the State money and gives people better lives, and would not have happened if philanthropists and the HSE had not come together.
The Irish view of philanthropy is ambivalent. Large donors are sometimes suspected of seeking to puff up their reputations, even though many very large donations are made with no publicity. The practice of some citizens who live abroad for tax purposes of giving large donations is often criticised, and accompanied by calls for them to pay tax in Ireland instead.
Some philanthropic donors are resident abroad, some are not. My general experience is that philanthropists become generous donors because they feel they have a stake in society and have an interest in a better world.
Philanthropy is well embedded in other countries, particularly in the US. However, Irish business lags well behind business in other states in targeted philanthropy. Just 0.1 per cent of the profits of Ireland’s top 500 companies are donated to charity each year compared to 1.2 per cent of the profits of UK-listed companies.
There is not only less philanthropic giving in Ireland than in many other countries, there is also a less developed infrastructure to channel philanthropic funds to where they could achieve the greatest impact.
A report in recent years by McKinsey consultants estimated total philanthropic giving in Ireland at €570 million in 2005, of which 80 per cent came from private donations. The vast bulk of this is spontaneous rather than planned. Much more could be achieved if philanthropy was guided by trusted intermediaries who would help achieve more significant and sustainable impact.
The grave economic climate has raised public pressure on the wealthy to give back to society. A culture of giving that seeks to tackle problems collaboratively and strategically to leave a permanent legacy is needed here, now more than ever.
Madeleine Clarke is founding director of the Genio Trust, which combines philanthropic and State funding to support projects bringing lasting change to public services for marginalised people