Achieving social sustainability: a local government considers philanthropy
by
Kym Madden
Australian Centre of Philanthropy and Nonprofit Studies, Queensland University of Technology, Brisbane, Australia
Coauthors: Wendy Scaife

Background. Brisbane with a population nudging 2 million is one of the fastest growing cities in Australia, with its population is expected to increase by over a million by 2026, fuelled by interstate and international migration (BCC, 2006b Australia (ABS, 2006a). Financial pressure on third sector organisations is projected to increase substantially, as it seeks to meet a fast expanding range of social needs while funding from government at all levels continues to tighten (Giving Australia, 2005; Griffiths, McDiarmid, & McGregor-Lowndes, 2005; Lyons & Hocking, 2000).

Why philanthropy? The city’s municipal council has identified social sustainability as a primary concern, including the engagement of citizens through philanthropy, if its vision of a vibrant, inclusive city in 2026 is to be realised (BCC, 2006a). Philanthropy is increasingly seen as a vital ingredient for healthy communities (Asia Pacific Philanthropy Consortium, 2001; Giving Australia, 2005; The Allen Consulting Group, 2003).

'Giving to charity is one of the most prominent ways in which in which people show that they care for others in society or express support for issues that matter to them. This public support is fundamental to the success of charities and also plays a crucial role in maintaining their independence from the public and private sector' (NCVO, 2006 : 6)

While Brisbane currently rates well on liveability scales, private funding lags other Australian cities. A lower level of donations is given and a lower percentage of the population donate; also fewer businesses in the state donate than Australian businesses generally (ABS, 2006b; Giving Australia, 2005) Third sector receipts in the state tell a similar story (Griffiths et al., 2005).

Why research was undertaken. Given that Brisbane is unlikely to be the only city with such concerns, the topic is worthy of attention by scholars and policymakers. Yet it is a largely under-researched area in public policy, community development, social marketing or fundraising literatures. Irvin and Carr (2005), discuss private gifts to local governments not to the third sector per se, describing these as generally ‘unexpected’ and ‘sporadic’ (p. 33). More positively, they conclude that deliberate government approaches to create the right climate for private giving does attract more donations per capita. In practice, city-based efforts to cultivate philanthropy and volunteerism have been undertaken (see, for example, ‘Social Enterprise London’ and ‘Melbourne Cares’ initiatives) but the local government’s contribution tends to be unclear.

Method. Thus research aimed to inform the local council of how it might build community sustainability through philanthropy. An exploratory qualitative study was undertaken in late 2006, comprising 22 in-depth interviews and four focus groups with key local stakeholder groups (businesspeople, affluent citizens, peak organisations, fundraising experts and council managers) and experts outside Brisbane and Australia. Participants were selected for their broad perspectives on cross-sector collaboration while the study’s scope was shaped in part by time and budget considerations.

Findings. The study finds that a three-pronged role as facilitator-catalyst-modeller is likely to be most valuable if the city is to increase its philanthropic activity. Specifically, there was consensus that business, private citizens and the third sector need to come together in non-traditional ways to discuss the city’s social needs and how these might be strategically and co-operatively addressed. The local council was seen by key stakeholders to be well positioned to enable, and encourage, such conversations. Further, the council was perceived across stakeholder groups as uniquely placed to act in a catalyst role. Firstly, it has the opportunity to assist businesses and private citizens find partnerships that fit - from their perspective – by showcasing community organisations and projects that can change the city. It also is able to boost third sector organisations by connecting them to resources in affordable ways. Finally, the council was perceived to have a modelling role through its size as an employer and its strength as a purchaser, influencing community norms in supporting the third sector. If it was able to gird up its efforts to demonstrate best practice social responsibility, a substantial flow-on effect was predicted. Stakeholders broadly agreed that the council’s high profile, underpinned by its social networks and its political and economic power, provided the leverage needed to fuse stronger community-based – and philanthropic - solutions to the city’s emerging social needs.

Date received: October 14, 2007