Impact-Driven Philanthropy

Over the next 50 years, donors will contribute nearly $20 trillion to nonprofit organizations. This presents an enormous opportunity to make progress on society’s most pressing challenges. But if donors aren’t making informed, intentional investments, they squander opportunities to have a transformative impact. While most donors indicate they want to make donations that are impactful, many lack access to high-quality resources or advice to guide their giving.

That’s why we created the Impact-Driven Philanthropy Initiative. Our aim is to help more donors strategically using their time, talents, and resources to give in ways that advance equity, effectiveness, and systems change. By giving in this way, philanthropy can help dismantle the root causes of society’s most challenging problems and begin to build a more just and equitable future for everyone.

Our Strategy 

 

We believe the path to more impactful individual giving requires three things:

  • A diverse, healthy, and coordinated ecosystem of donor support;
  • Making that ecosystem more visible and accessible to donors;
  • Investments in donor support organizations that have been leading from the front on social justice, in new mechanisms that make it easier for donors to give in ways that advance equity, effectiveness, and systems change, and in research and advocacy related to philanthropy.

Building a diverse, healthy, and coordinated ecosystem of donor support 

There are many places for foundation staff and philanthropy professionals to go to learn and share best practices. There also are a number of amazing organizations that provide opportunities for donors to learn, expand their ambitions for giving, and connect with peers. But until recently, these organizations didn’t have a space to connect, vision, and share and spread new models or best practices. In addition, this constellation of organizations has often been invisible and inaccessible to donors.

We envision a field that reaches individual donors, meets them where they are, feeds and reveals new possibilities, and accelerates their path to giving with impact. 
 

To help build this field, we invested in starting the Impact-Driven Philanthropy Collaborative, a group of key stakeholders who share an interest in shifting individual donor mindsets and behaviors. The Collaborative is now an independent project, hosted at Proteus Fund, and includes other foundations, donor education providers, donor organizers, nonprofit leaders, researchers and academics who study donor behavior, philanthropy advisors, wealth advisors, and others. 

 

Increasing the visibility and accessibility of the donor support ecosystem  

The resources and know-how to achieve impactful giving exist, but many donors are unaware or unable to access the rich knowledge of the social sector. We launched Giving Compass in 2017 to serve as a one-stop shop for donors to learn about issues, connect with learning opportunities in the ecosystem, and find giving opportunities. Now an independent nonprofit organization, Giving Compass’ resources focus on equity, effectiveness, transparency, and systems change, providing donors with the tools they need to give in ways more likely to make a difference. 

 

Investing in innovations and model programs, as well as research and advocacy related to philanthropy. We focus our resources on organizations and leaders that have historically had less access to funding.

Our grantmaking dollars focus on a few key priorities:

  • Elevating promising new models of donor support that influence donors and dollars toward equity, effectiveness, and systems change;
  • Funding research that fills gaps in our understanding of the landscape of donors, donor support, donor behavior, and advances more just outcomes from giving;
  • Boosting innovations that support donors to meet community priorities in new ways.

As we consider proposals we assess:

  • Will this influence individual donors, rather than foundations or staffed philanthropy?
  • Will this influence donors and dollars toward equity, effectiveness, and systems change?
  • Has this organization historically been proximate to resources, funding, and power? 

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  • Partner spotlight

    Giving Compass

    America has a long-standing tradition of generosity. As a nation, we contribute nearly $400 billion each year to issues and causes. Though we often think of large foundations when we think about philanthropy, more than 70 percent of giving in this country is directed by individuals writing checks or giving online. 

    Among individuals, most (85 percent) say they care about the impact of their gifts, but only 32 percent conduct research online, and only 9 percent  compare organizations. At the same time, our nation is anticipating the largest intergenerational transfer of wealth in our history, and expects up to $60 trillion will be passed along to heirs and some $20 trillion will be given to nonprofits over the next 50 years. 

    This generosity presents an enormous opportunity to make progress on pressing social issues and solve some of our greatest challenges, but if donors aren’t making informed, intentional investments, we will squander this chance. We see an exciting opportunity to direct more of these donations to make faster and deeper progress on issues and in communities. 


    Read More

    Partner spotlight

    Giving Compass

    America has a long-standing tradition of generosity. As a nation, we contribute nearly $400 billion each year to issues and causes. Though we often think of large foundations when we think about philanthropy, more than 70 percent of giving in this country is directed by individuals writing checks or giving online. 

    Among individuals, most (85 percent) say they care about the impact of their gifts, but only 32 percent conduct research online, and only 9 percent  compare organizations. At the same time, our nation is anticipating the largest intergenerational transfer of wealth in our history, and expects up to $60 trillion will be passed along to heirs and some $20 trillion will be given to nonprofits over the next 50 years. 

    This generosity presents an enormous opportunity to make progress on pressing social issues and solve some of our greatest challenges, but if donors aren’t making informed, intentional investments, we will squander this chance. We see an exciting opportunity to direct more of these donations to make faster and deeper progress on issues and in communities. 


    Read More

Recommended Reading

Finding Your Impact Giving Focus

This article helps donors move beyond the “peanut butter” approach, contributing small amounts to many different projects, to finding and sustaining a focus to giving that will lead to greater impact. 

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A Practical Guide to Outcome-Focused Philanthropy

This guide reflects the collective experience of staff at the William and Flora Hewlett Foundation, incorporating input from colleagues across the organization about what has – and has not – worked in their grantmaking.

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Impact Giving 101

This collection of articles curated by the Stanford Center on Philanthropy and Civil Society includes gold standard articles and reports on how to improve your philanthropy and affect social change. 

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Why the Raikes Foundation is not a perpetual philanthropy

Jeff Raikes explains that the Raikes Foundation will spend down its assets by 2038 out of a desire to “do as much as possible, as soon as possible.”

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“To give away money is an easy matter and in any man's power. But to decide to whom to give it... is neither in every man's power nor an easy matter." — Aristotle ”

– Aristotle

Illustrative Grants

Social Venture Partners International

Social Venture Partners International is a philanthropic network that cultivates effective philanthropists, strengthens nonprofits, and invests in collaborative solutions in order to tackle pressing social challenges.

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Donors of Color Network

This grant supports Donors of Color Network’s efforts to deepen the philanthropic field’s understanding of high-net-worth donors of color, their needs, behaviors, and interests.

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Giving Project Learning Community

The Giving Project Learning Community is a donor organizing model focused on social justice philanthropy and disrupting the power dynamics in traditional philanthropy.

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JustFund

JustFund connects funders with innovative social justice organizations and front line campaigns, while facilitating greater transparency, trust, and learning.

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