by Erik Jay

Created on: February 23, 2008

Philanthropy in Flux: A New Generation of Thoughtful Givers

A growing number of wealthy and generous groups and individuals - individuals like Bill Gates, boards of directors at Starbucks and General Motors, foundations representing elite American families like the Rockefellers and Carnegies, celebrities like Angelina Jolie and Brad Pitt - are changing the face of modern philanthropy.

They believe in helping as much as they ever have, some even more passionately. But they and others are hard at work rethinking old models of charity and assistance, and creating new ones, in order to maximize the amount of good that a well-placed dollar can do.

They are the vanguard of a new generation of thoughtful givers.

Theresa Lloyd is the author of Why Rich People Give, published by Philanthropy UK, "an initiative of the Association of Charitable Foundations (ACF)" in the United Kingdom that seeks to "develop new philanthropy by promoting and disseminating knowledge and best practice to all those involved in giving." Since a "key objective" of the ACF is "to widen participation in the giving community," it was essential to find out what motivates the wealthy to give. The results of Lloyd's research were surprising to many, both within and outside the philanthropic community.

Some psychologists have contended that altruism on the part of the wealthy may be driven by guilt. However, Lloyd found little of that. Instead, she discovered five main motivations for acts of charity: (1) "belief in the cause"; (2) wanting to be a "catalyst for change"; (3) the "satisfaction of personal development"; (4) "duty and responsibility" and the desire to "put something back" into society; and (5) a certain amount of "fun, enjoyment and personal fulfillment" in having "relationships with a range of people."

Of course, guilt may play a small part in one or more of these motivating factors, but it did not "rear its ugly head" as a prime culprit. In fact, Lloyd found that donors are reinforced in their decisions by "knowing that they are making a difference, being properly thanked and meeting like-minded people." In other words, wealthy givers don't want emotional succor, they want to know that their giving is effectual and appropriate. This indicates a desire for intimate involvement that springs from the workings of the heart, not the keys of a calculator.

Changes at the top

Thoughtful, focused giving is one hallmark of the new generation of charities and foundations. Motivated by belief, a desire

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