Wealth shared: How would you spend £100,000?

What would you do with a £100,000 windfall?

Invest it in stocks and shares? Buy a property? Blow it all on a Lamborghini?

Call us cynical, but we’ll hazard a guess that ‘giving it away’ would be low on your list of priorities.

But that’s exactly what 34-year-old David Clarke did.

And he let twelve strangers decide what to do with it.

Sounds crazy, right?

But there was method to his apparent madness.

As he explains in a document titled ‘Wealth Shared’, “like a lot of people in my generation, I’ve struggled to reconcile the privilege I have with an awareness of the need that exists around me.

I’m in a particularly fortunate position financially because of the money I have inherited. I therefore resolved to give away most of it away.”

Talk about selfless.

He continues, “I read about the use of participatory grant-making, whereby power over funding decisions is handed over to the communities the funds are intended to benefit. I was curious to see whether this principle could be extended further to determine not just how funds are deployed, but for what purpose.”

David’s idea led to the formation of ‘Wealth Shared’, a first-of-its-kind project that saw him recruit 12 strangers in his hometown of Liverpool to decide how to spend his money.

Explaining the process of choosing the participants, he says: “I sent letters randomly to 600 addresses in the L8 postcode. 38 people responded and I picked 12 to take part. I then arranged four sessions of deliberation (with a facilitator) for them to decide what to do with the money.”

Conditions

At the initial session, Clarke told the group the money could go to any charitable cause, anywhere in the world.

The only rules were that they couldn’t give the money to themselves, or have any continuing involvement with the money beyond the conclusion of the project.

‘Gripping to watch’

Over the course of the four sessions, which Clarke describes as “lively at times” and “gripping to watch”, the group put dozens of organisations forward.

But, after a series of self-organised votes, they decided to home in on the L8 postcode of Liverpool; one of the most deprived areas in the country. 

They researched charities that focused on poverty and inequality and came up with a list of four they felt would make good use of the funds.

The outcome

After eight hours of deliberation, the group decided to donate £25k each to The Florrie community centre; The Dingle, Granby and Toxteth Collaborative, (a network of schools); the Team Oasis children’s charity; and the Granby and Toxteth Development Trust.

Rewarding process

Commenting on the project, Clarke says, “the twelve participants tackled the question of ‘how to use funds to make the world better’ with depth and sophistication. I was surprised by how much they committed to it.

I can think of very few things I might have done with the money that would have given me the same level of satisfaction.”

Talking about the wider significance of the project, he says, “I hope that Wealth Shared will inspire others to undertake initiatives in a similar direction. It is an attempt at creating a practical example of wealth redistribution in action, and an attempt to allocate money in a way that is truly democratic.

I see Wealth Shared as part of a growing movement towards introducing greater democracy into philanthropy and grant-making.”

Growing movement

It seems David’s idea is catching on as he isn’t the only philanthropist experimenting with participatory grantmaking.

Earlier this year, Austrian heiress Marlene Engelhorn announced she was setting up a ‘citizens group’ to distribute her €25m inheritance.

She fired off emails to 10,000 Austrian citizens, inviting them to take part in the initiative dubbed the ‘Good Council for Redistribution’. And proceeded to choose 50 respondents she felt best represented Austria’s demographics in terms of gender, ethnicity, and income. 

The result?

Her trust paid dividends.

Following six weeks of deliberation, the citizen’s group decided to award the cash to 77 worthy causes, including The Austrian Society for Nature Conservation, Neunerhaus, (which provides aid to homeless people), and the left-wing think tank Momentum Institute.

And, according to a statement she gave BBC News, Ms. Englehorn was delighted with the outcome.

"A large part of my inherited wealth, which elevated me to a position of power simply by virtue of my birth, contradicting every democratic principle, has now been redistributed in accordance with democratic values.”

On the hunt for a fundraiser? You’ve come to the right place. Call us on 0203 750 3111 or email info@bamboofundraising.co.uk to kick-start the process.