Why do wealthy people choose to give to charitable causes?
For some, it’s a religious or cultural imperative. For others, it’s an opportunity to give back to their communities and make a difference. Sometimes its belief in a particular cause, or being a catalyst for change. Often it’s a sense that good fortune should be passed on and that with wealth comes responsibility. The act of giving might be governed by the giver’s heart, or prove more strategic in nature – taking into account areas of real need and even possible tax relief.
In Africa, all of these reasons permeate the philanthropy landscape and motivate high-net-worth individuals to give. But across the continent another factor also comes into play, which is tied to a strong desire to uplift people by addressing basic needs, from healthcare to education and job creation. As a result, many African countries giving to help mitigate the social effects of natural disasters and disease outbreaks is another significant focus area for local philanthropists.
In 2020, The Bridgespan Group conducted research which showed that around 30% of large-scale giving by African donors between 2010 and 2019 was in response to emergencies and crises. The research sample, which included Kenya, Nigeria, South Africa, Tanzania and Zimbabwe, highlighted donations totalling US$130 million over this period.
Often these efforts are directed through personal foundations, such as Nigerian billionaire Tony Elumelu’s eponymous foundation or the ELMA South Africa Foundation, which was established by the late Allan Gray. But for those wealthy African individuals seeking to make a difference, but without the time or inclination to run their own foundations, there are other options available to ensure impact.
To help philanthropists maximise the effectiveness of their donations, Carrick has created a results-driven mechanism focused on partnering with the right people to advance the wellbeing of others, the planet and society at large.
By creating systems which allow for centralised funding for on-the-ground non-profit organisations (NGOs) Carrick | Impact not only enables smarter collaboration but also helps NGOs to meet regulatory and management standards, thereby helping them to succeed and grow.
The Carrick | Impact Platform is an independent, open market digital portal which provides donors and investors with access to market-based solutions that seek to provide for the efficient allocation of capital to social entrepreneurs and organisations, aligned with the broader values of Carrick Impact, explains Craig Featherby, Founder and CEO of Carrick Wealth.
“In one, five, or 10 years from now, we want to be confident that the contributions we’ve made have contributed to not just feelings of generosity, but quantifiable progress and impact,” adds Featherby.
It’s all about impact
While most African philanthropists want to make a meaningful difference by giving, Featherby acknowledges that it can be difficult to know where to start. “We understand the need to see the direct impact your contribution has made. Which is why, at Carrick , we believe in sustainable giving that is backed by transparency and results. This is important now, more than ever, in Africa,” he says.
Putting impact at the core of its solutions, Carrick | Impact offers an alternative to African philanthropists who are looking to go beyond traditional grant making and leverage the power of markets to create change. This is achieved by constant analysis of interventions that are sustainable, scalable, repeatable and measurable.
Yes, it’s philanthropy. But it’s also impact focused with the aim of making each contribution count. This, explains Featherby, enables philanthropic investors to make a real, sustainable difference to society, based on quantifiable feedback. This way, the goals and ambitions driving a desire to give can be aligned with observable impact. In other words, everyone wins – both today and into the future.