Big Shifts for Philanthropy in the Next Decade

Philanthropy is a practice that predates recorded history, recognized worldwide as the desire and effort to promote or improve the welfare of others. Philanthropists all over the world have long worked to fight social, racial, and economic inequity, founding and supporting the movements that work so hard to improve the lives of world citizens in need.

Yet in the coming decade, we may see a major shift in the way philanthropy works and how it affects world citizens and organizations. Issues such as extreme political polarization and shifting demographics make it nearly impossible for philanthropic efforts to exist outside of the political sphere, upending the efforts of longstanding organizations and creating division in a sector where unity is critical. Momentum around racial justice, shifts in climate change, a global health pandemic, and a starkly fluctuating social compact are also changing the faces of donors, the communities they benefit and the issues they aim to address.

Many of these changes should not come as a surprise, particularly in the face of universal technology and access to information, which presents its own set of challenges and benefits. These shifts are representative of the fluid state of humanity, and our drive to come to terms with and improve the ever changing world around us. 

Some of the shifts within the realm of philanthropy come with a dash, or in some cases a heaping portion, of hope and progress. With major issues like racial justice and climate change finally working their way to the frontlines of philanthropy, we can expect direct attention and dedication to the issues that have long been starving for it. Such issues, and the philanthropic efforts funneled into addressing them, stand to make progress and significant change for the better on a global scale.

Unfortunately, even matters as dire as Earth’s rapidly changing climate are particularly at risk and at the mercy of challenges like political polarization. Even well-meaning philanthropists find themselves in the ugly crosshairs of present-day politics, which are more self-serving and corrupt than they’ve possibly ever been. 

Two years into a life-altering pandemic, the potential and efforts for positive change go far beyond the actual issues that philanthropic efforts aim to address. In order to keep up with the accelerated pace of change, philanthropy practices must also make a major shift. 

So how do we adjust to the flow of these worldly fluctuations, so we might continue the effort to enhance and unite the lives of world citizens in a meaningful way?

The answer most likely lies in what has been identified as critical “edges” of philanthropy, which establish new ideas and strategies, and are essentially the building blocks we need to adapt philanthropic practices to a quickly changing world. 

The four primary “edges” of philanthropy, as laid out in What's Next for Philanthropy in the 2020s: Seeing Philanthropy in a New Light, include: rethinking philanthropy's role, balancing power (both within philanthropic efforts and as it pertains to world, local and racial leadership), catalyzing leverage through effective funds direction, and redesigning the overall enterprise of philanthropy to improve organization and governance of practices.

The general premise of identifying the “edges” and “edge practices” (the individual components within each principle) of philanthropy largely suggests that we begin work on a smaller, more local scale. To work from the edges of an issue and patiently drive toward the center, ultimately creating a larger, more global effect. For example, instead of spearheading a campaign to end world hunger, philanthropists in the next decade should start by supporting city or state-wide efforts to address hunger and find ways to expand that reach with the help of local leaders.  

By adjusting the scope and practice of philanthropic efforts, we can learn how to ride the momentum of major societal shifts, rather than swim against the current toward uncertain goals. Philanthropists who find a way to follow the “edges” of their efforts and embrace these changes within philanthropy will find themselves with a huge leg-up in their efforts to make a meaningful impact on the world.