Chapter: Research Findings

 Chapter: Research Findings
Objectives
The primary objective of this chapter is to identify the impact of changing trends on the role of foundations in the 21st century.
A study of changing Trends in Philanthropy in 21st Century
•	New outlook of entrepreneurs who run the philanthropy industry much as same like a business organisation. This also creates new opportunities such as cause marketing, CSR, PR etc.
•	Availability of newer tools and Revolution in technology is viewed as one of the key change-makers as Internet creates an opportunity for information to be shared at a very rapid pace. E-philanthropy is an example which has raised the level of awareness to new heights.
•	Democratisation of philanthropy and rise of public-private partnerships has raised the operating principles in the industry.  
Primary Research
10 Family Foundations in London who gave away between £500, 00 and £2million annually were interviewed to determine the impact of political, social, technological changes in their grant making approach:
(Please Refer to Appendix A for Research Questions)
 
Attributes of the Sample Selected for Primary Research
10 out of the 50 invited ACF foundations responded for both the interview and the questionnaire
Characteristics:
	Majority of the sample operated at local levels
	Half of the sample reported expenditure of £1million.
	Median Average typical Grant awarded= £10,000
	Different foundations had different processes for consideration of grant applications
	Majority employed 1 to 5 salaried employee
	Nearly all respondents awarded grants to registered charities
Interview Questions
(Please Refer to Appendix B for detailed Questions asked in the Interview)
The main results from the Interview Question revealed the following findings:
	Strong sense of sustaining grant making work levels and practices during economic crunch
	Amount of money to be spent on grant was affected as a result of economic downturn
	Revision of Grant making criteria
	Increased number of grant applications 
Findings
Patterns in approach to giving – Initial motivations
It was noted that the foundations in the sample used conventional approaches as they began to donate money. They were not too selective in deciding which particular organisation they should favour more. As times changed, these donors have all become more knowledgeable and have begun to stop thinking in terms of which organisations to support, and started to think about how to solve a specific problem, using skills, connections and resources they possess. Today, the donors are using a more strategic approach which enables them to identify the steps needed for adequate consideration which is changing the face of Philanthropy in UK in contemporary times.
Motivations Giving 
The findings reveal that there are other factors other than just need which drives charitable donations. The same are donor’s taste, personal bias, perception of charities competence and desire for personal impact.
Philanthropy is being increasingly viewed as the following by the donors:
	Means of dealing with financial success
	Pathway into a new sphere of endeavor
	Life turning point and an obligation to give
	Need to work towards something of broader significance
	Tax relief benefits is not as significant as it used to be
Structured Philanthropy offered a solution to most of the foundations as far as management of their wealth is concerned. The wealth of donors provides both positive and negative motivations to engage in philanthropy. While the taxation incentive to engage in philanthropy is acknowledged by interviewees whose wealth comes from all sources, it is never cited as the sole reason for giving. The strongest of the motivations for giving is feeling an obligation to give back, with seven of the 10 family foundations that articulating a need to return some of their wealth to their community and country. 
(Please refer to Appendix C for specific responses from the donors about what they feel about this industry)
Foundations criteria for choosing charities
These points were considered for deciding which charities to support:
	Charity’s vision and strategy (cited by 50% of respondents), that the 
	Charity is focused on the greatest need (listed by 42%), and that the 
	Charity measures its results and uses its resources well (named by 29% of respondents)
The implementation of these criteria is a challenge for the foundations. How a charity measures its results and how they use their resources is difficult to be accurately determined.
Impact Measurement
8 of the foundations interviewed put a greater emphasis on evaluation and seeking ways to measure change. The goal is to work more efficiently by ensuring that whatever they fund has a measurable and positive impact on both beneficiaries and communities.
Social Investment
Some donors were also identified to be giving out of their foundations, in areas of social investment. This