foundations
For our centenary year, the Barrow Cadbury Trust is asking some of our colleagues and partners to write blogs for us, not all the content of which we will necessarily agree with. This one comes from Nick Perks and introduces the Funder Commitment on Climate Change. The Barrow Cadbury Trust is a founding signatory of it and we are determined to raise our game and integrate a ‘climate lens’ into all areas of our work. While very active in the shareholder and responsible investment space, we have done much less in other areas. For us, with our relatively modest spending capacity, this will not mean a significant new funding stream but a much stronger approach to our own internal practices and their environmental impact, as well as enabling our partners to introduce and cascade better practice. We are starting with a push to reduce and report on our own carbon footprint as an organisation.
I’ve been talking with people about climate change for more than thirty years. Recently, one question has started to dominate all others: “what is it that I need to do?” We know climate change is happening, we know it’s serious, and we know we all have a responsibility – so what is it that I need to do? The Funder Commitment on Climate Change arose out of several charitable funders, including the Barrow Cadbury Trust, seeking an answer to that question.
In June 2019, at a gathering of foundation leaders, we heard persuasive evidence not only about the threat from rapid climate change, but also of the opportunities and costs of the necessary transition to a low carbon economy. For over a century, our economy and society has been shaped by the use of fossil fuels for electricity, heating and transport. Ending fossil fuel use therefore involves economic and social transformation. Similarly, moving from today’s agriculture to a more sustainable, mainly plant-based food system will also be a huge change.
In the coffee break, several of us got talking about “what it is we need to do” and the idea of a climate pledge or manifesto for funders was born. I offered to start the ball rolling, and was inspired by the amount of energy and interest it attracted.
Conversations continued over the summer. An early realisation was that the pledge had to be inclusive, and relevant to all foundations, whatever their size, governance or charitable mission. At the same time, it was vital to get beyond vague intentions, and several of the founding signatories rightly pushed for high ambition. We also agreed that the Funder Commitment needed to be holistic, recognising all aspects of our work – programmes, investments and operations – will need to change.
The language evolved through discussion and consultation. Initially known as a ‘manifesto’, we eventually settled on the term ‘Commitment’ as having the right connotations. We sought language that would speak to diverse audiences, mindful of the need to build a broad movement. The final text recognises opportunities, such as new industries and jobs, for example.
The Association of Charitable Foundations generously offered space at their annual conference in November to launch the Funder Commitment. This gave us both a platform and a deadline! The Esmée Fairbairn Foundation provided some seed funding, and Comic Relief supported the creation of a website. The final text, founding signatories and communications came together, all just in time.
On 6 November 2019, the Funder Commitment on Climate Change was launched in a packed room of foundation staff and trustees, with many more turned away at the door through lack of space. By the end of the day, inquiries were coming in from other foundations wishing to add their name. At the time of writing, we have topped thirty signatories, with Comic Relief the latest to join.
So, what have we all pledged to do, and why?
Addressing climate change needs large scale, urgent action. Money is needed for activism, for advocacy, for education, for business development, for practical action, and to support local communities through transition. Some foundations can provide grants, while others can give staff time or other in-kind support. So one element of the Funder Commitment is to commit resources. The slide below illustrates the way it works.
The causes and solutions of climate change interact with many other fields of civil society activity, ranging from housing to the arts, and from scientific research to social change. Foundations have an opportunity to build on their existing expertise and networks, to make productive links across different fields, and to foster positive action on climate in their own priority areas. Another part of the Funder Commitment is about this integration.
Next we come to foundation investments. Climate change is recognised as a risk to investments by the World Bank and Bank of England, amongst others. It is basic good stewardship to recognise and address this risk, and this is what the Funder Commitment requires. There are also many opportunities for foundations to take a more active leadership stance on responsible investment.
While for most foundations, our direct carbon footprint will be small relative to the impact we can have through our grants and investment choices, it is still important and empowering to get our own house in order – to show leadership, to engage stakeholders, and to manage reputational risks. So the Funder Commitment also covers the climate change impact of our own operations.
Every funder, and indeed every NGO, public body and commercial company, will be at a different stage in tackling climate change. This is an ongoing generational transformation, not a one-off task. For this reason, the Funder Commitment opens with a commitment to learning, and closes with a commitment to reporting on progress. What is it that you need to do?
Nick Perks
Find the full text of the Funder Commitment on Climate Change and list of current signatories here.
Nick Perks is a freelance charity and philanthropy consultant.
http://www.nickperks.org.uk/ @Nick_Perks_
Since its re-election, the Hungarian government has continued to undermine the credibility of Hungarian NGOs and tried to gain control over NGO funding, which is distributed independently from the government. The background to this stand-off is an ongoing dispute between the Hungarian and the Norwegian governments, with Budapest accusing Oslo of interfering in Hungarian political affairs through NGO funding of Hungarian civil society.
Representatives of the Hungarian government have made serious allegations about well-established, respected Hungarian NGOs which raise serious doubts about the commitment of the Hungarian government to its obligations as a democratic government and a member of the European Union.
A consortium of three Hungarian civil society organisations which disburse funds locally from the European Economic Area and Norway Grants are currently under investigation by the Hungarian government, following publication by the Prime Minister’s office of a list of recipient organisations, including some of the most reputable human rights and civil liberties groups in the country, which led to accusations of them being “problematic” and “left leaning”. The three members of the consortium — Autonomia Foundation, DemNet and Ökotárs — are well known for their promotion of democracy, defence of human rights, and environmental work, as well as for ‘re-granting funds’ on behalf of other donors, including the European Union and USAID . The consortium is challenging the investigation under Hungarian Law and is regarding it as an act of intimidation.
Human rights watchdogs and NGOs have a crucial role in democratic societies. Any political pressure on them, or any attempt to restrict their funding, is against democratic principles, rules and standards, and the protection of universal values.
The Barrow Cadbury Trust, as one of many donor organisations committed to human rights and democratic values, has signed a statement protesting about the actions of the Hungarian government against its own human rights NGOs and the consortium of grant-makers. We hope that the Hungarian government refrains from any further political pressure and shelters its NGO sector from threats and interference. We also call on EU member states and institutions to remain vigilant towards any government pressures on civil society organizations, in particular on human rights and civil liberties watchdogs, which have a fundamental role to play in democracy.
In recent decades the dominant assumption among foundations has been that the main role of foundations is grant-making, supporting existing organisations or operating their own programmes. Indeed, many foundations prefer not to impose their values and goals on society or appear to add competition among existing voluntary organisations.
In reality, however, many foundations have chosen to create new organisations in order to achieve their goals in pursuit of social change. Beyond their inherent role, foundations choose to act as ‘institutional entrepreneurs’ involved in the conception of something new which the foundation backs financially and supports in other ways.
The ‘inventive foundation’ is the subject of a new pan-European study by Diana Leat, supported by Barrow Cadbury Trust, Calouste Gulbenkian Foundation (UK Branch) and the Paul Hamlyn Foundation. This study examines nine examples of foundation generated organisations of varying size and purpose across Europe and intelligently explores the fears, trepidations, challenges and opportunities of foundations in acting as social entrepreneurs.
The short report argues that foundations, with their knowledge, networks and resources, are well positioned as institutional entrepreneurs and reveals why foundations decide to create new organisations, the processes and the issues arising in this activity in a range of different settings across Europe. The nine case studies included are each based in different countries with differently developed non-profit sectors, are engaged in different fields of activity, and have generated different types of organisations.
While there has been much discussion over the years on ‘venture philanthropy’, this study instead focuses on the neglected topic of the venture entrepreneur and the importance of the role of foundations as ‘mother’, ‘father’ and ‘midwife’ to an organisation. It is a useful piece in highlighting some of the issues foundations may wish to consider should they decide to create their own organisation or institution and raises further issues on the role of foundations in civil society and their relationship with partners. The full report, ‘The Inventive Foundation: creating new ventures in Europe’, is available to read here.
ACF has today launched a new research publication detailing the size, shape and trajectory of foundation giving in the UK. Foundation Giving Trends 2014, funded by Pears Foundation and produced by ACF in collaboration with the Centre for Charitable Giving and Philanthropy at Cass Business School, will build on Professor Cathy Pharoah’s established work on financial trends among foundations and includes ACF member perspectives.
The report was launched with a discussion of key findings and a practitioner perspective and is the first edition of a new series of research briefings. Building on the track record of its companion ‘Family Foundation Giving Trends’ the briefings will reveal key data about the vast majority of trust and foundation giving in the UK. Although there are roughly 10,000 foundations in the UK the top 300 account for 90% of the value of all their giving.
The report reveals that foundation giving to charitable causes grew by £271 million, or 10%, whilst income fell by the same amount. This “unprecedented finding” highlights the importance of foundation assets, which have enabled several larger foundations to fund ‘counter-cyclically’ through a time of elevated need and reduced government expenditure. However, such spending decisions have been made at a time of low investment returns, intensifying the pressure on trustees to balance today’s pressing issues with maintaining their spending power for future generations.
