Why philanthropy is undergoing a profound and fundamental shift
We launched the Jean-Francois and Marie-Laure de Clermont Foundation because we want to make a difference. Its inspiration came from the Institute of Life formed in the 1960s by men who believed in uniting the cause of man and our environment through art, science and culture.
Our Foundation and the decisions we make in terms of funding and supporting projects is inspired by the Institute of Life, which was co-founded by my grandfather François de Clermont Tonnerre.
Through this philosophy of investing in and creating a better future for humanity as a whole, we back big ideas. Ideas steeped in real innovation and profound thinking. When we choose projects that are tackling the big ideas of society, they reflect our personal values and much more.
We are at a tipping point and must plough all of its collective resources into solving the problems endemic in our society. These are inequality, poverty, war, disease, food security and climate change. These are huge existential issues, and the only way we can come through the next decades intact is to find a way to safeguard the very fragility of life.
COVID-19 shows us how vulnerable we are
Last year highlighted in a very stark and tangible way how vulnerable we are as a species. Even in the richest and most developed countries in the world, COVID-19 has brought us to our knees. We’re not defeated, of course. We have vaccinations and programmes, and we are fighting this virus and we will win.
But the next one may be worse. So, while leaving 2020 behind is something that many of us are glad to do, the new year did not magically conquer the problems we face. However, during the pandemic last year and into this one, there have been some positive developments within philanthropy that gives us so much hope for the future.
Fundamental attitudes are shifting. Philanthropic donors and charitable investors are waking up to where their money really goes, and the difference it truly makes. And investment choices are increasingly being dictated by this philosophy. It’s no longer about turning a profit economically, but societally as well.
As we continue through this difficult year, there is hope and there is optimism. We have vaccinations rolling out around the world, and we have a global population better prepared and more aware of potential challenges ahead.
We must face up to the questions of identity, equality, the right to healthcare and infrastructure, why half the world is dealing with food insecurity and why half has too much. I think we will see more of the following themes develop within philanthropy in 2021 and beyond.
Philanthropic trends and mindset changes in 2021
1. A fundamental shift in focus for philanthropist donors
There has been a distinct refocusing of where philanthropists are targeting their donations. Last year brought with it far more than the pandemic. The simmering rage of racial injustice exploded again in the US, culminating in a bitter election that contained the first attack on the Capitol since the American War of Independence.
Politics, injustice, the pandemic, healthcare… all of these issues are forcing philanthropists to look again at where their donations go. Tackling the source of these problems is becoming more important than spending constantly on the symptoms.
Rather than fighting food insecurity by donating food to food banks, for example, philanthropists now also want to address the very source of food insecurity. Let’s prevent the problems at their roots and dig out the poison before it brings suffering.
2. A challenge to the structure of elite Western philanthropy
For many years, particularly in the US, there has been a system that rewards the already wealthy. Unlimited power, privilege and tax breaks are heaped on those who have the most already. At the same time, philanthropic funds are often buried in red tape and confusion.
There has been a lack of transparency all round. We can see this in the tax breaks awarded to fundamental religious organisations, for example. In property tax exemptions for charities that receive little to no oversight or regulation. This is changing. Every wealthy country must now look at these issues and remove this level of corruption.
3. More funding of solutions to tackle climate change
With the new Administration, the US has rejoined the Paris Climate Agreement under President Biden. And as the US begins to retake its place as a global leader in tackling climate change, it’s clear that philanthropy will be a major driver towards this.
Non-profits will increase work, and Foundations will up their donations. Climate change is the biggest challenge facing humanity. It’s an existential threat that is now informing pretty much everything we do. The only way for the world to surmount the negative impact of climate change is for corporations, public bodies, foundations and individual donors to work together.
4. An increase in sustainable investment using philanthropic capital
Sustainable investment is where environmental, social and governance (ESG) concerns are included into funding decisions. This will continue to increase everywhere, with developed countries ploughing more into funds that promise not just economic returns, but societal ones too.
Philanthropists are stopping to ask exactly where their money is going. This year is a year of change across the board. While we hope to regain a world where COVID-19 allows us to live relatively normal lives, there will be far more emphasis on combating the problems facing humanity.
