"If the new generation of philanthropists gets it right, they too can make a real difference to the world," enthuses The Economist in a special issue devoted to the subject. "But for that to happen, philanthropy will have to shake off the amateur approaches that are prevalent in many of its circles and become a modern, efficient, global industry."

Efficiency: the word is out. It’s the theme for the new generation of donors whose decision to become philanthropists is not just about generosity for its own sake. They want results and to make the best possible impact. "The new philanthropists are often from the business world - men and women who want to apply the same model of efficiency to giving away money as they did to making it," says Fabrice Van Kote, director of development at the Fondation de France. Unlike acts of charity, which involves personal contact, philanthropy aims to "make a difference" by working with people who are highly successful at what they do.

The first step is to define exactly which cause the donor wishes to serve. Many projects fail because the objectives have been too vaguely defined or the donor’s wishes are not properly taken on board by the right people or institutions, which inevitably leads to resources being spread around too thinly. The donor must therefore explore their wishes prior to engaging and if necessary enlist the support of an expert person or organisation that can act as their philanthropy partner. The aim is to really understand the areas that interest the donor to keep them motivated for a long period. "The important thing is to talk about your goals, get in touch with the right people and act with humility," explains Maurice Machenbaum, the founder of wise partnership, a Geneva-based consultancy company.

 

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“New philanthropy”

The new philanthropy has seen an unprecedented rise in interest. With the desire to give comes a new set of aspirations: the requirement to know where donations are going, the desire to make a measurable change, and be personally involved. Philanthropy has entered the banking realm as increasing numbers of clients wish to approach the giving away of their money with the same care as they took in making it.