He argues we have a tendency to confuse morality with frugality, in that we think a charity's secondary objective, after supporting its cause, should be to keep overheads as low as possible.
The examples Pallotta gives are US-based, and the puritanical origins of charity as a form of penance for capitalist industry aren't quite the same here in New Zealand. But we do have a perennial debate over how much charities should spend on running costs versus their primary purpose, and we need to take a more sophisticated, business-minded approach to philanthropic growth.
There is tension between consolidation (and cost-sharing) and creating as much charity as possible. The argument over whether charities with aligned objectives should simply pool their resources is a worthwhile discussion.
New Zealand has more registered charities per capita than any other country in the world, and there may be value in consolidation to share back-office expenses and (in theory) devote more to the frontlines.
But equally, many givers say there's no such thing as too much charity. Pallotta's compelling argument is that an activity often dismissed as a costly and dispensable overhead — namely, audience-broadening and awareness-lifting fundraising events — is crucial to growing the pie and making it possible for charities to do far more for their causes over time.
The sector is crying out for innovation, for a different approach that maximises Kiwis' remarkable generosity.
A terrific example is Wood for the Trees, a charity founded by several mates after they lost their best friend to suicide. Their goals are to help those suffering from mental illness and spread awareness about mental health.
To relieve these intractable problems they are prepared to do some things that break the charity mould, starting with combining their networks to create a powerful philanthropic engine for a charity-event style of fundraising.
The charity is currently bringing together horses and Harley Davidsons in an unprecedented family-friendly event, the Out the Gate Race Day at Ellerslie Racecourse on December 16. It will feature horse racing, live stunt shows, performances and speeches from the likes of Mike King, Tiki Taane and the remnants of Hello Sailor, and there will be the chance to win a new Harley Davidson.
Charity events are not new, of course, but an event of this type, targeting families and offering a fun day out in a large central Auckland location, pushes fundraising and conversation about mental health into a new, accessible mainstream space.
Wood for the Trees shows the value in collaboration. This is a group of mates from all walks of life, who realised that if they pooled their resources, contacts and energy, they could make a difference, and working with public figures such as Mike King, who already has a high profile in mental health advocacy, is a smart move.
They are piggybacking on existing entities, spokespeople and funding to build their own brand while pushing the whole movement forward, and are setting themselves apart by being willing to spend money (such as by giving away a Harley) to make money and raise awareness. Wood for the Trees recognises that great innovation doesn't come from the drive to win. It comes out of a deep desire to contribute to the lives of others.
Givers can target their donations by looking for hallmarks of innovation. We are often asked, how do I know which charity to support? Which organisations are well-run and will do the best with my money? A good start is to look at how a given charity or foundation functions in its space.
• Kirsten Taylor is the philanthropy services manager for Perpetual Guardian and manager of the Perpetual Guardian Foundation.
