What are Foundations for?
Monday, April 15th, 2013
Robert Reich has written an important and thought-provoking article on the proper role of foundations in a democratic society. On one hand, they are “virtually by definition, the voice of plutocracy” that challenge our ideas of equality in a democracy. On the other, they are uniquely well placed to make long-term, risky bets on public goods no-one else will fund. Their independence and idiosyncracy are their great strengths and potentially their greatest weaknesses. READ MORE
Philanthropy Impact
Monday, March 4th, 2013
Philanthropy Impact is a new, quarterly, UK-focused philanthropy magazine. This first issue looks at the impact that last year’s Budget had on the sector – and looks ahead to the 2013 Budget. It also features case studies of philanthropy in Germany and India. The magazine seems to be bringing a more quantitative and strategic analysis to the sector. READ MORE (pdf)
Philanthropy: You’re doing it wrong
Friday, January 4th, 2013
Felix Salmon, finance blogger at Reuters, looks at some of the mistakes made by ‘mega-philanthropists’ when donating millions of dollars of their income. The list includes interfering with charitable operations, encouraging mission creep and ‘transactionalising’ the giving process – forcing charities and philanthropists to focus on how the donor will be publicly acknowledged instead of identifying how the money will be best spent. The overarching theme is one of ‘humility, mixed with seriousness’ as success sometimes requires managing egos and expectations. READ MORE
Impact 2013
Friday, December 7th, 2012
Philanthropy advisors Arabella have launched their annual series of philanthropy impact blogs. The first in this year’s series focuses on funding, in particular the challenges of the current model. Programme-based and short-term funding is causing recipients to think incrementally, limiting the opportunities for sustainability. ‘Substantive’ and multi-year investments in nonprofit and government leaders are required. READ MORE
What does $3.8bn of grant funding look like?
Friday, November 9th, 2012
The Hewlett Foundation has launched a fantastic new grants database that shows every project it has funded since 2000 on a map. It’s really intuitive and shows how relationships, priorities and projects change over time. The project is open-source, which could encourage more donors to take this approach. The blog Philanthropy 2173 notes that the Kellogg Foundation has already received the source code. READ MORE
University Philanthropy
Friday, September 14th, 2012
Philanthropic giving to UK universities has increased from £513m to £693m over the last 5 years. HEFCE’s Review of Philanthropy in UK Higher Education predicts that the sector has the opportunity to receive £2bn per annum from philanthropic donors by 2022. Alumni contributions are forecast to be an important component. Currently 1.2% of UK graduates donate to their alma mater (compared with 10% of US graduates). To achieve that £2bn figure, alumni giving needs to rise to 5%. The report also recognises the importance of shaping long-term relationships with donors. READ MORE (PDF)
Funders shut the doors
Friday, August 3rd, 2012
Tough times demand thoughtful choices. For grantmakers, this means who gets money, and why. Very few grantmaking organisations are strategic in the true sense of the word, in that they have an understanding of the world they work in and a view about how they are going to change things. More often than not, they are content to be response-mode funders, making calls on the projects that come across their desks. So it’s no surprise that a new survey by the DSC suggests many funders are closing the door to new applicants. Sticking to what you know is the default option when you don’t have a strategy to guide you. READ MORE
A miserable chart
Friday, July 6th, 2012
The Giving USA report shows that major gifts are falling at the fastest rate since the survey began in the 1950s. In a miserable piece of analysis, someone has looked at major giving in the Great Depression. It shows a similar trend to today. Giving did not get back to 1929 levels until the outbreak of World War 2. It’s not a great argument for those who suggest philanthropy can “fill the gap” left by reductions in funding elsewhere. READ MORE
From Blueprint to Scale
Friday, June 8th, 2012
For all the interest in ‘impact investing’ as a way to address questions of global poverty, there are few tangible opportunities for investment. Monitor and the Acumen Fund suggest smart philanthropy can close this gap. A new approach, which they call ‘Enterprise Philanthropy’ can provide the foundation for successful, scaleable impact investments. This looks like an important report, applicable to philanthropic efforts in all sectors. READ MORE
Giving Pledgers meet up
Friday, May 25th, 2012
81 of the richest people in the world have now signed the Giving Pledge, committing to give away a large proportion of their wealth. This group is now working together to think about how they do it. They met this month, with their main interest reported as how ‘impact investing’ actually works. The most interesting quote is from Warren Buffett, who said “it is amazing to me the degree of inequality that exists without people really getting upset.” READ MORE