An economic approach to giving

Barclays Wealth

Early interventions: An economic approach to charitable giving

Iona Joy, Matthew van Poortvliet, Sarah Hedley, Benedict Rickey and Eibhlín Ní Ógáin

September 2011, 45 pages

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What are the most expensive problems facing the UK today, and how can they be most effectively addressed?

Earlier this year, Barclays Wealth asked NPC to investigate whether taking an economic approach to charitable giving could help to maximise its impact.

The resulting report highlights some of the most difficult issues facing society. Using an economic approach, the report analyses interventions according to their potential to prevent problems that are costly to society, and improve people's earning potential, and therefore society's economic well-being.

The report centres on three issues:

Chaotic families
Children with conduct problems
Adults out of work due to mental health problems

All three cost society billions per year, and have a significant impact on the future of those they affect.

Charitable funding is often allocated according to personal beliefs and emotional connections. Society’s biggest problems do not attract the most money, and funding isn't spent on the most effective solutions. If resources are scarce, we should we think more about their allocation - an economic approach can help achieve this.

‘We very much welcome the publication of this report, seeking to advise charitable funders on how they might spend their money in order to do the most good for society. Action to promote good mental health and intervene early when people become unwell is excellent value for money, and research to find out more about what works is key to making that action possible.’

Sean Duggan, Chief Executive, Centre for Mental Health

Read NPC's blog about the lessons we've learnt from this research.

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'Relationship managers need to be able to talk about philanthropy with a great deal of confidence to ensure that they can educate clients and help them in decision making and the process of giving.'

An international multi-family office