The World Charity Index 2014
Introducing City A.M’s unique ranking of charitable giving from the private sector.
Prof. Dr. Theo Schuyt
VU University Amsterdam and University of Maastricht Chair of the European Research Network on Philanthropy (ERNOP)
Welcome to this fourth edition of the City A.M. World Charity Index. Its ranking is becoming more and more prestigious, with the increased profile of the index making it worthy of a dedicated special supplement.
This upgraded status makes us, researchers at the Center for Philanthropic Studies at VU University Amsterdam, very grateful for a number of reasons.
MORE EXTENSIVE RESEARCH
First of all we were challenged to conduct even more extensive research than last year. Ranking is a serious and work intensive task, but also difficult to perform. Ranking philanthropic efforts is still rare. There is little data available, definitions are unclear and criteria are missing. For these reasons, the City A.M. editors asked the scientific community for help to improve their work. Data from other rankings are scarcely available, so we searched all kinds of information sources, including: the Foundation Center New York, the European Foundation Center in Brussels and our research fellows around the world. We have integrated these rankings into one database.
DEFINITION OF PHILANTHROPY
Secondly we have used a clear definition of philanthropy and philanthropic behaviour. Our definition is that it stands for private actions or donations primarily serving the public good, and we have excluded (commercial) self-interest. We scrutinised – and limited ourselves to – the official documents; and have made a strict division between all kinds of overhead and philanthropic grants. We didn’t control the internal financial reports; work that has to be done by professional audit institutions and treasuries. Furthermore we limited our search to institutional donors (not individuals). For further justification of our research: a methodological appendix can be found at www.cityam.com/giving.
CHARITY LOTTERIES AT THE TOP
Our research results in three different rankings: the top 20 largest philanthropic organisations in the world based on all-time expenditure, the top 20 largest philanthropic European organisations and the top 20 largest philanthropic organisations by the amount given in 2013.
Comparing the top institutions with last year there is a change: the Wellcome Trust has been included this year after intensive consultation; the annual report gave rise to questions. Moreover I would like to draw attention to one exceptional organisation organisation: Novamedia. Nearly all the other foundations in the list are endowed foundations; their grants originate from legacies and donations from corporations or banks. However, Novamedia generates its grants from running charity lotteries in the Netherlands, UK and Sweden.
WORK IN PROGRESS
As said, ranking and research, are by nature a difficult and ongoing process. The results are here. They are still preliminary; ranking institutional donors is a “work in progress”, as figures are scarce and data mostly second-hand. In research terms: we conducted “second-analyses” without always having the opportunity to check the original sources, and therefore can’t be certain they are reliable. This new ranking, therefore, is open for “essential contestability”.
The efforts of City A.M. are an important step. Media attention for what charity and philanthropy is about will increase both its visibility and value.
The more data becomes available, the more philanthropic institutions become visible and publicly accountable and the more the ranking will grow to be a legitimate and authorised list worldwide.
HOPE AND LOVE
What about philanthropy, the subject matter of the ranking? The philanthropy sector in Europe – and all around the world – is back on stage. For the revival of private pledges for the public good, scholars offer a range of theoretical explanations. May I add
one and – perhaps – not an academic one: hope. All around the world we face war, political tensions, threatening diseases. Philanthropy, on the contrary, arises from a positive attitude and mindset.
Philanthropy sees society as an organism. There are differences within society, it is true, and these are sometimes considerable, but it is nevertheless a single entity. In this respect it is possible to make a comparison with religion and ideology. Contributing to the common good, committing oneself to humanity, to future generations and to the preservation of the Earth, all belong to the category “rules for coexistence”, which are present in all world religions and ideologies.
Nelson Mandela wrote a passage about love: “I reminded people again and again that the liberation struggle was not a battle against any group or colour, but a fight against a system of repression.”
“People must learn to hate, and if they can learn to hate, they can be taught to love, for love comes more naturally to the human heart than its opposite…. Man’s goodness is a flame that can be hidden but never extinguished.”