When I’m asked to speak, I describe myself in three roles – philanthropist, philanthropoid, and philanthropy geek. The more practice I have in living out each of those roles, the more I find myself returning to three core beliefs:
- Philanthropy – voluntary action for the public good – is a big tent concept. It is too often devalued to only mean tax-deductible gifts to charitable organizations.
- A wide variety of values and purposes, often unvoiced, drive the voluntary philanthropy of individuals, businesses, and grantmakers. Too many messages from nonprofit staffers, advocates, program officers, and consultants demean the welcome diversity of values and purposes.
- There is no one right tool for philanthropic action. Philanthropists can choose from many legal structures (or lack thereof) and strategies and each structure and strategy has its own advantages. There are too many articles and conference sessions claiming one tool is wrong or one strategy is the most correct.
I’ve struggled to incorporate those beliefs into an easy graphic or two. My latest iterations came when preparing for a “Navigating 21st Century Giving Trends” workshop for the Bayer Center of Nonprofit Management and the “Strategic Grantmaking Deep Dive Day” for the Indiana Philanthropy Alliance.
The first graphic mapped three types of philanthropic action – investing, buying, and giving (cash, time and other resources) – and three recipients of that action – nonprofits (and government agencies), businesses of all types, and individuals. During the “Navigating 21st Century Giving Trends” workshop, we discussed trends in philanthropy and filled in the chart. It resulted in this:
The second graphic was for the “Deep Dive Day” and attempted to group the tools available to philanthropists and grantmakers into three headline strategies – impact, influence, and leverage. Credit goes to the Annie E. Casey Foundation’s Making Connections Initiative for the three headlines, and to many other funders for the tools in use.
Some of the ideas in the graphics are long-standing practices. Some are newer, evolving signals from the future of philanthropy. My sense is that an increasing number of donors, grantmakers, social innovators, and everyday people are purposely using multiple tools. They may have different terms for the tools and strategies, but they’re sharing in a belief that they can deploy their resources for social good in multiple ways. America’s largest two demographic groups are driving the trends:
- Baby Boomers currently provide 43% of the money donated to charities and are the largest demographic in Congress and state legislatures, in nonprofit executive director roles, and on the Forbes 400. As they transition into retirement years, will have even more time to use their resources and talents to accomplish social and public policy goals.
- Millennials will make up at least half of the workforce by 2020. They actively commit their time, money, and networks for causes and don’t mind if those causes aren’t managed by charitable organizations. They expect companies to be involved with causes and proactively seek options to buy from and invest in businesses that have positive social and environmental results.
Both graphics pack in too many complex ideas to stand well on their own. And, both are works in progress. I’m offering them up for your feedback and comments. Do the frameworks make sense? Am I missing key tools and ideas? I welcome your thoughts!
One thought on “Signals From the Future (part 3): Tools and Strategies”
Thanks for the mention in this post! We miss you, but hope you are enjoying your new locale! ~ Cindy
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