The Sunday Times Rich List will steal the show, but it should be those at the top of philanthropy who earn our admiration
The Sunday Times Rich list was published yesterday with much fanfare. As well as the customary intrigue about who made it and who didn’t, who is up and who is down, another ranking, the Giving List, will also be published. It lists philanthropists according to the percentage of wealth they have given away. Whereas once it was seen as the poor relation of the Rich List, the Giving List has risen in importance and prominence.
Over the past year, Covid has sparked an important debate about wealth and philanthropy in the UK. The crisis has seen huge health, education and economic problems and they have disproportionately affected people who are worse off. By and large, the super-rich have been impacted less. Indeed, whereas the UK suffered its biggest drop in output for 300 years last year, there is evidence that the ultra high-net worth community became even wealthier. One survey showed that Britain’s billionaires increased their aggregate wealth from $154 billion to $209 billion.
As much as the government talks about “building back better”, we must also acknowledge the role philanthropy plays. Many hope that the potential economic bounce back, fuelled by such high savings, will be accompanied by a parallel philanthropy bounce.
When the wealthy engage meaningfully with philanthropy, they are able to support under-funded and niche areas. There is almost an endless number of causes in dire need of funding from youth employment and social mobility to health-related ones like cancer and dementia. Pro Bono Economics claims that charities face a £10bn funding gap, as income has fallen and demand for many charities has often risen. Covid has exacerbated economic, health and social problems. Philanthropists can bring a new sense of mission to addressing a need, where business has no commercial stake and the government is too cumbersome.
Modern philanthropists can also bring a lot more than money to the table. They bring skills, networks and drive, particularly those who have been successful in business. The Scottish-American philanthropist Andrew Carnegie spoke about the “talent for organisation and management” of business people which could boost and support charities.
It is no accident that the likes of Bill Gates and Warren Buffet are amongst the most prominent philanthropists in the world and have galvanised others through their Giving Pledge. Marcus Rashford, the Manchester United footballer, has been one of the most vocal philanthropists of the pandemic in the UK, after his efforts to raise money for foodbanks morphed into a campaign which forced two u-turns from Downing Street. His tireless work off the football pitch was rewarded with the top spot on the Sunday Times Giving List.
When the super-rich delve into the world of philanthropy, it also creates social stability. A gulf between the elite and the rest of society is a recipe for social disorder. The American writer Robert Frank conceived of “Richistan”, a separate country for the uber-wealthy with its own health, education, shopping and leisure infrastructure. The growing levels of inequality across the world are a concern for many governments, hence the UK government’s mantra of “levelling up”.
Aside from all these compelling reasons, it is also in the self-interest of the super-rich to give to charity. They are often maligned as tax-dodging and uncharitable, cut off from the mainstream of society. However, by backing social causes and demonstrating a care and concern for others, they can strengthen society, burnish their own reputations and establish a legacy of giving.
For those already philanthropically-minded, Covid has been a wake-up call to redouble their efforts. Charitable donations topped £4billion over the past 12 months, the first time in the 20-year history of the Giving List. Money given to philanthropic causes was 36 per cent higher than the previous year.
Several philanthropists have reported imagining conversations at the gates of heaven, and said that they didn’t want to look back at this difficult period and think they could have done more. Some have found it to be an outlet for the ultimate in Abraham Maslow’s hierarchy of needs: of self-actualisation and finding a purpose beyond ourselves.
We need more billionaires and high net worth individuals to immerse themselves in philanthropy. The state and the market cannot solve every problem. We need not only the money but the problem-solving ability of philanthropists. With the UK and the world having undergone such trauma through Covid, there has never been a better time for philanthropy to step up.