Wealth Shared: A Radical Act of Giving

Light Reading

21 Jan

David Clarke’s inspiration stemmed from his struggle to reconcile his privilege with the inequalities he saw around him. 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 most of it away.”

But Clarke wanted to do more than simply donate. Influenced by participatory grant-making principles, where communities decide how funds are allocated, he asked: “What if those who benefit from the funds also determine their purpose?”

This question sparked the creation of Wealth Shared, an experiment in democratic philanthropy.

A Community-Driven Approach

In his hometown of Liverpool, Clarke sent letters to 600 randomly selected households in the L8 postcode, an area with significant social challenges. Of the 38 people who responded, he chose 12 to take part in the project.

Over four facilitated sessions, the group was given the task of deciding how to allocate the £100,000. Clarke set two rules: the money couldn’t benefit the participants directly, and they couldn’t have any involvement with it after the project concluded.

The Deliberation and Decision

The discussions, described by Clarke as “lively at times” and “gripping to watch,” produced a long list of potential recipients. Ultimately, the group decided to focus on causes within their own community.

After careful deliberation, the money was divided equally among four local organisations addressing poverty and inequality:

The Florrie community centre
The Dingle, Granby and Toxteth Collaborative, a network of schools
Team Oasis, a children’s charity
Granby and Toxteth Development Trust

Clarke praised the participants’ commitment, saying: “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.”

A Growing Movement Towards Democratic Philanthropy

Clarke hopes that Wealth Shared will inspire others to embrace participatory approaches to giving. As he puts it, “This is an attempt to create a practical example of wealth redistribution in action and to allocate money in a way that is truly democratic.”

It seems the idea is already catching on.

Earlier this year, Austrian heiress Marlene Engelhorn launched her own version of participatory grant-making. With a €25 million inheritance, she formed a “Good Council for Redistribution” by inviting 10,000 Austrians to take part. From this pool, she selected 50 participants who reflected Austria’s demographics.

After six weeks of deliberation, the group distributed the funds to 77 causes, including The Austrian Society for Nature Conservation and Neunerhaus, an organisation supporting the homeless.

Engelhorn expressed her satisfaction with the process, saying: “A large part of my inherited wealth, which elevated me to a position of power simply by virtue of my birth, has now been redistributed in accordance with democratic values.”