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Preserving what's most precious: heritage and monument philanthropy in the age of impact
A “conservation deficit" is opening up given the public underinvestment in the upkeep of our heritage. Now private individuals and foundations are routinely asked to acquire monuments that are released by public or private parties - meaning it is time for a fresh look at heritage and monument philanthropy. We should look at how the digital revolution can help preserve our heritage and how worthy of support a “heritage for all" approach is. At Lombard Odier, we propose a simple yet effective strategy framework to translate aspirations into action and outcomes that make sense.
The case for a fresh look at heritage & monument philanthropy
The devastation of Notre-Dame de Paris may be the most recent and highest-profile disaster to strike a historical monument, but it is far from an isolated case. In the face of such ongoing threats to our cultural heritage, it is becoming clearer that we face a global “conservation deficit" and governments lack the funding to properly maintain and restore their monuments. A recent development is the application of innovative finance concepts to the world of monuments and heritage in order to preserve, and in some cases increase, the value of material and immaterial heritage assets. A fresh look is warranted, because they are expressions of who we are and can be used for identity construction, and as cultural artefacts. Moreover, monuments often have an important capacity to generate income for local economies.
Conserving our heritage and skills
The world faces a significant conservation deficit with regard to monuments and built heritage. This is distressing, and not only because it means that some of our most beautiful and most historically important buildings are falling apart. The conundrum of the global conservation deficit is that investments in cultural heritage and monuments often generate dividends for local communities far in excess of the costs. What's more, they create rewarding and well-paying jobs in artisanal trades that would otherwise be at risk of disappearing entirely, and with them centuries-old skills and knowledge. In their capacity as significant donors to many large restoration projects, philanthropists can play an important role in facilitating the transmission of these crucial skills from one generation to the next.
Leveraging the digital revolution to preserve our heritage
Digital transformation has started to disrupt the philanthropy value chain and philanthropists can help make productive use of this trend for heritage conservation. Crowdfunding platforms and campaigns are modularising philanthropy and democratising access to capital across the board. Digital technologies hold the prospect of bringing our heritage to life in new, compelling ways. Meanwhile leveraging the power of digital technologies can help take our appreciation and preservation of heritage to a whole new level.
The future of monuments: heritage for all
Despite the best efforts of planners and funders, not every monumental project ends up having the desired impact. Why is that the case, and how can philanthropists seek to maximise the efficacy of the projects that they support? Frequently, monumental projects planned and implemented from the top down quickly find themselves abandoned or appropriated for other uses. The Olympic Games provide new examples of this phenomenon seemingly every few years, with stadium venues in Rio de Janeiro and Athens quickly falling into disrepair. For monument philanthropists, it is crucially important to involve local communities in deep and meaningful ways from the very beginning of the planning of any monument or cultural heritage project.
What does innovative finance hold in store for heritage and monuments?
The past two decades have generally seen a remarkable rise in innovative financial mechanisms that unlock funding for projects tackling specific problems. The most interesting tools are those that provide access to capital or de-risk its deployment. Where financial innovation is married with digital technologies, new funding formulas arise that provide access to both those who need capital to finance heritage preservation and those who want to invest in such undertakings. Crowdfunding has had major success in many areas, particularly in digital projects and start-ups, and there is no reason why it should not be applicable to the field of heritage.
A strategic approach to heritage philanthropy
What is the most effective approach for philanthropists who want to translate their aspirations in heritage into concrete actions? To answer this, a number of questions need to be asked: On which part of heritage do you want to focus? What kind of conservation action do you want to support? How can you best structure your giving? How will you implement your giving? Who are your pilot grantees? When and how will you review and improve your practices and procedures? Only through well-thought-out and properly planned interventions will we be able to preserve the legacies of the past, so that future generations can be inspired just as we have been.
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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