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1. Know the theoretical fundamentals of fundraising (110 000 nonprofit organizations in « Arts, Culture and Humanities » in the United States)
2. Know the best practices and the most effective strategies used by cultural organizations for fundrasing purposes
3. Acquire a set of techniques, tools and skills that will be directly operational and applicable to pursue a career in fundraising
4. Understand what makes a successful management of a cultural organization (a clear mission, a tailored programming activity, relevant marketing campaigns, a managed budget in order to increase the number of supporters, gain in visibility and expand income through fundraising efforts)
Introduction to the course
Even if the meaning of this world has significantly evolved, philanthropy refers to the free donations to the benefit of organizations acting for the general interest: education, health, fight against poverty, scientific research, environment, art and culture.
The origins of the term Patron date back to the 1st century BC. Caius Maecenas was a minister of the roman emperor Augustus, and first protector of arts and literature. His name is nowadays a byword for a wealthy and powerful person who encourages and finances the artistic creation.
Donating means giving to someone the ownership or the use of something, for free. A donation is the act of donating as well as the thing donated. We can donate money, material objects, but also our time or even our blood, a part of ourselves.
The act of donating is at the hearth of what we call philanthropy.
-A humanist virtue and idea.
-A reformist movement stemming from the enlightenment theories.
-Financial donations to the benefit of the general interest.
The term philanthropy made its first appearance in the 5th century BC, in the well-known Greek tragedy Prometheus Bound, attributed to Aeschylus. In this play, Prometheus gives the fire to mankind, together with arts and science, defying the Gods’ will to wipe out and replace the humanity.
The word is composed by the Greek terms philos (to love, to befriend, to do good) and anthropos, the human being: philanthropy is therefore defined as the love for humankind. It differs from friendship since it refers to the humanity in general, not only to some people in particular.
Prometheus
With the development of Christianity, during the Middle Age a new generation of philanthropic initiatives in Europe sees the light, even if the term used is charity.
Hospices de Beaune
In the 18th century, marked by the Enlightenment, the ideas of Montesquieu, Voltaire and Rousseau inspire noblemen and bourgeois to the foundation of the first philanthropic societies, characterised by their secularity and their respect for multiplicity of political and religious opinions.
The Fondation de France was created in 1969 by decree of the General De Gaulle. Strongly wished by André Malraux, then minister of Culture, this large foundation is directly inspired to the American foundations.
In 1979, the Association for the Development of Industrial and Commercial Patronage (ADMICAL) was created by young professionals who, impressed by the amount of enterprises financing cultural institutions or events in the US, decided to try to do the same in France.
Fundraising techniques, systematized patronage strategies and other common methods have appeared only in the early 20th century in the United States. Before, philanthropy was done on a much smaller scale, and most of donations were destined to the Church, the poor, the schools or the hospitals.
Main features of American first philanthropic institutions:
- They aim at serving the common good, following the objectives set in their bylaws. Example: Rockefeller Foundation for the progression of knowledge in the world.
- They focus on the root causes of the problem, more than on the tangible help to unfortunate people.
- They have a defined legal status.
Philanthropy has contributed to the transformation of the American society.
“A man who dies rich dies disgraced”
Andrew Carnegie
“In the first place, I advise you to apply to all those whom you know will give something; next, to those whom you are uncertain whether they will give any thing or not, and show them the list of who have given; and lastly, do not neglect those who you are sure will give nothing, for in some of those you may be mistaken.”
Benjamin Franklin
- In the US prevails the idea that the pursuit of individual success will result in an advancement of the common good, and that the state should favour the fulfilment of private initiatives and stimulate the voluntary commitment of the citizens.
The free market and philanthropy are seen as the best means through which allocate collective resources.
- France is the heir of revolutionary and republican ideals, and solidarity is preferred to charity, recognizing that everyone belongs to a nation of equal and free human beings.
The idea that the common interest must be separated from private interests has prevailed. The state is responsible for the general interest and bound to play a primary role in the allocation of collective resources , especially when it comes to the levelling of life conditions. Nonetheless, this monopoly has been called into question since the 80s
“If you look at who is the leader of an enterprise, you’ll see in France a boss, in England a Lord, and in the US an association”.
Alexis de Tocqueville, 1840.
In the two countries, the State has encouraged the development of private philanthropy through quite similar instruments (tax credit or promotion of voluntary activities for young people) but in different periods (from mid-30s and especially the 60s in the US; from 60s and especially end of the 80s in France).
Main differences:
Philanthropy is not a neutral and consensual issue. It has a lot of detractors, but also a lot of defenders.
Paradox: while in France philanthropy has a quite positive image and it’s encouraged by public authorities, more and more books calling it into question are being published in the US.
Rob Reich is Professor of Political Science at Stanford University. His work primarily focuses on educational inequality and the role of philanthropy in the public sector.
He wrote Just Giving in 2018, investigating the ethical and political dimensions of philanthropy and considering how giving might better support democratic values and promote justice.
David Callahan is founder and editor of Inside Philanthropy, a digital media site. Previously, he was a Senior Fellow at Demos, a public policy group based in New York City that he co-founded in 1999. He is also an author and lecturer.
He wrote The Givers in 2017, sounding the alarm about how philanthropists, even the best intentioned, are creating a power shift in American society that has implication on us all.
Matthew Bishop is The Economist U.S. Business Editor and New York Bureau Chief, and a sought-after expert on philanthropy.
Michael Green is an economist and writer, based in London. He is an adviser to the Big Society Network and a fellow of the Royal Society of Arts.
They wrote Philanthrocapitalism: How the Rich can Save the World in 2008, an examination of how today's leading philanthropists are revolutionizing the field, using new methods to have a vastly greater impact on the world.
Anand Giridharadas is an Indian writer, former foreign correspondent and columnist for The New York Times. An Aspen Institute Fellow and former McKinsey analyst, he teaches journalism at NYU.
He wrote Winners Take All in 2018, investigating how the global elite’s efforts to “change the world” preserve the status quo and obscure their role in causing the problems they later seek to resolve.
- The rich and powerful fight for equality and justice any way they can, except ways that threaten the social order and their position atop it, constantly seeking to do more good, but never less harm. - He asks hard questions: should the world’s gravest problems be solved by unelected elites rather than the public institutions they erode by lobbying and dodging taxes?
- He argues that we must create more robust and egalitarian institutions, taking on the grueling democratic work of changing the power structure from the bottom up.
France is still ranking in the middle of the table when it comes to philanthropy, but a spectacular development has taken place over the last decades, allowing France to partially make up for its gap with the other European countries.
In the space of 20 years, France adopts one of the most incentivising fiscal and legal systems in the world in order to foster the development of philanthropy
Four main issues remain:
1. A fragile « donation-culture ». Even if French are generous, donating isn’t part of the national culture yet, and the average level of trust towards the institutions is still quite low.
2. A complex legal framework. The notion of general interest, common good, social utility overlap with themselves. There are seven different legal status for a foundation, and the endowment funds.
3. A fiscal uncertainty. In order to develop, philanthropy needs fiscal stability. Many recent law propositions have menaced of reducing or remove any fiscal advantage for donations.
4. The economic stagnation. Since the 2008 economic crisis, the purchase power of French households has lowered, enterprises are often relocating their activities abroad. Philanthropy cannot thrive in the long term when the general economy is depressed.
Known as "loi Aillagon" from the name of the Culture Minister who pushed for it, the following tax credits were introduced:
CORPORATIONS: 60% tax credit, in the limit of 5 ‰ of their annual turnover. Plus the possibility of getting benefits (free tickets, private tours, logo on material etc etc) in the limit of 25% of the donation.
INDIVIDUALS: 66% tax credit, in the limit of 20% of the person's income. Contreparties limited to 65€.
Another law, passed on jan 2002 introduces a credit of up to 90% for corporation donating for the acquisition of special objects, National Treasures.
Since the introduction of such as favourable law, donations in France have literally exploded.
For each € donated, the State forgoes €0,60 to €0,66 of taxes --> Tax expenditure
This fiscal advantage has been increasingly criticized for being too expensive and an instrument of fiscal optimisation, giving to wealthy taxpayers and enterprises the power of allocating up to 66% of their taxes.
In 2016, for example, the biggest 36 enterprises represented 3/4 of government's tax expenditure for donations.
The most clamourous case was the Fondation Louis Vuitton, inaugurated in 2014. Its construction has costed €790 M, of which €518 M fiscally deducted.
The French fiscal court, Cour des Comptes, in its 2018 report has criticized the absence of control on tax expenditure and the efficiency of this powerful philanthropic instrument, recommending to better supervise it.
In order to avoid abuses and to reduce tax expenditure, the Government has announced the intention of reducing fiscal advantage from 60% to 40% of the donation, if this last exceeds €2 M. This measure would be introduced in 2021.
Donations to associations fighting poverty are excluded.
Forecast: €80 M annual cut in tax expenditures, but 2020 Budget won't be voted before next November.
This cut affects €400 M of donations that can potentially be withdrawn from 2021. How will the State compensate for such loss?
Source: http://www.chateauversailles.fr/sites/default/files/chateau-de-versailles-rapport-d-activite-2018.pdf
Source: https://www.louvre.fr/sites/default/files/medias/medias_fichiers/fichiers/pdf/louvre-rapport-d-activites-2018.pdf
Source: https://www.musee-orsay.fr/fileadmin/mediatheque/integration_MO/PDF/Rapports_activ/RAMO2018.pdf
Source: https://www.metmuseum.org/-/media/files/about-the-met/annual-reports/2017-2018/annual-report-2017-18.pdf
Source: https://www.operadeparis.fr/lopera-de-paris/rapport-annuel
Source: https://www.comedie-francaise.fr/fr/budgets-et-statuts
Source: https://www.rsc.org.uk/about-us/finance-and-funding
NOTE: Drawing down the corpus of the endowment to pay debts or operating expenses is known as "invading" or "endowment invasion" and sometimes requires state approval.
Source: file:///C:/Users/User/Downloads/file_32_10834.pdf
Source : https://www.hkballet.com/uploads/docs/5bd6dc4779c2c1.pdf