How to give it: Stephen Dawson

Stephen Dawson spent 25 years at ECI Partners, a private equity firm, where he is now non-executive chairman. In 2002 he founded Impetus (www.impetus.org.uk), the first UK venture philanthropy organisation, which provides funding and business expertise to charities. He is co-founder and chairman of Jacana Venture Partnership (www.jacana.org) which aims to tackle poverty in Africa by building a venture capital industry there.

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What is the cause closest to you?

Tackling poverty in the UK and Africa is the cause closest to me. Successive UK governments have done a terrible job of increasing social mobility, so the gap between rich and poor is growing. This was a contributing factor in last summer’s riots and social divisions are linked to the state of the economy. In Africa the focus needs to be on breaking the cycle of poverty on a national level, through economic development

Which other charities do you admire most and why?

In the UK, St Giles Trust, which has one of the most effective business models for reducing reoffending. Internationally, Camfed which supports female education in Africa and helps a large number of girls. Both have been supported by Impetus.

You brought venture philanthropy to the UK. Can you explain what it is?

Venture philanthropy provides charities and social enterprises with a combination of long-term funding and expertise. If you just give money then you aren’t adding much value and if you just have expertise you won’t be as influential because money makes people listen. The integration of both makes venture philanthropy succeed. Impetus invests in these charities in the same way that you would invest in a business. Management is the most important factor; they have to be ambitious and good salespeople. When choosing a charity we think: ‘Will each pound spent help someone’?

Do highly paid people have a duty to support the financially disadvantaged?

They certainly do have a duty and that duty is in their interest, too. Divisions in society are dangerous: they lead to riots and an increase in crime.

If you don’t help others or resolve issues you end up living in a fraught society. I have been lucky to have had a satisfying career and have accumulated wealth so I could devote the last 10 years of my career to social causes. I’d urge others to think about investing their time, expertise and money to help charities.

Do charities generally use donations appropriately?

Donations should be carefully monitored but there are also significant misunderstandings in this area. Many business people believe charities’ money should not be spent on overheads, which in my opinion is misguided. Charities are also exceptionally good value. If I had to choose between a service provided by a government or a charity, I would almost certainly choose the charity.

howtogiveit@ft.com