A quarter of philanthropists set up trusts ‘for involvement and control’

More than a quarter of philanthropists who set up their own trusts do so because they want involvement and control over the use of their money, according to new UK findings from the research consultancy Factary. Though not specified in the report, it is probably fair to say that the same factors can apply to people who set up Donor Advised Funds at community foundations. Factary interviewed more than 100 founders of grant-making organisations over the past year.

When asked what had been their main motivation for setting up their organisation, 27% said it was that they wanted to be involved and have control over where their money went. 17% said they wanted to provide funding for "under-served" causes, and 12% said it was because they had concerns over the administration costs or efficiency of other charities. 80% of people who gave this final reason had previous experience in the not-for-profit sector, which the report says is a "slight concern". This article was published in Third Sector magazine.