Can Philanthropists Help Support a Sustainable Future?
Philanthropic organizations are becoming increasingly influential in supporting sustainable development goals worldwide. Many have become early adopters of aligning their financial planning and grant strategies to the UN's Sustainable Development Goals (SDGs). According to the Foundation Center, the total SDG Funding worldwide reached $112 billion in 2016 and the SDGPP has estimated that $651 billion in philanthropic giving can be achieved by 2030.
Philanthropic organizations contribute to the 2030 agenda for sustainable development by supporting awareness and raising funds by integrating SDGs into programming strategies. As drivers of impact, they can catalyze change and generate impact through collective action and cross-SDG partnerships. They are also innovative, testing new ideas and adapting to new approaches such as forming new coalitions and helping to de-risk investments. However, there is potential to further scale philanthropic giving that implements SDG initiatives.
However, data is still lacking on how much philanthropy aligns with SDGs. It's been reported that of the largest donors, The Bill & Melinda Gates Foundation gave away six times more donations than the next largest global funder, totaling nearly $20 billion. Over half of other philanthropic funders also made considerable contributions in SDG areas. Many donors gave outside their home countries, reflecting a broad and dedicated commitment to global development issues. These funders dramatically increased their financial support to SDG-aligned bets even before the UN ratified the new goals in 2015.
The amount of money pledged demonstrates a different story because how donors give funds is also important. Research shows that the diversity represented by 836 large bets, funders' efforts generally rotated around four broadly defined roles. These included developing and testing innovative solutions, collaborating to finish philanthropic duties, integrating and scaling solutions with impact, and advocating for policy change. Here are some of the most influential ways philanthropists aligned with SDG goals.
Developing & Testing Innovating Solutions: Grants that were focused on innovations account for nearly a third of the $42.2 billion in SDG-aligned donations. Other funders, like governments or international development agencies, often are unable or even unwilling to give back due to the uncertainty and risk common in developing and testing innovative resources and tools.
Implementing and Scaling Solutions with Impact: More than half of the large-scale donors went to implement and develop solutions that worked. The conclusion shows that this type of work thrives on innovation because taking a solution that works in one country or area frequently requires adaptation when establishing these solutions in other local communities.
Collaboration to Finish the Project: Around ten percent of the largest-scale donors in this category, and it often requires changes to systems. Philanthropists often have the resources and connections to coordinate big efforts, especially with their experiences collaborating with diverse stakeholders like NGOs, governments and more. As the 2030 deadline to meet SDG goals nears, researchers anticipate increasing this category of large donor strategies.
Advocates for Policy Change: Advocacy efforts make up nearly 5 percent of big bet donations. This amount doesn't accurately showcase the impact this type of spending can have. Research has highlighted major philanthropic donors' need and importance of advocacy campaigns.
Funding Major SDGs
Between 2000 and 2016, $42.4 billion in philanthropic donations were sent to 17 SDGs at differing levels. Half of this funding, $21.1 billion, went to Good Health & Wellbeing. Seven SDG goals comprised roughly 40 percent of philanthropic donorship, collectively receiving $2.9 billion, 7 percent of this big bet funding.
Many of these funders targeted four major SDG categories: education, health, gender equality and environmental issues. When examining these closely, it highlights how big donations have supported innovation, setting up and scaling, finalizing these projects and advocating for them.
According to the Foundation Center, it can be easy to highlight work within the SDG frameworks. However, it's important philanthropists and their organizations shift to more active roles in the collective work required to deliver on the SDGs. Aligning with the SDG goals while not changing operations within their own organizations will fail to necessitate the necessary changes. The next phase of the SDG's funding should consider measuring such impact and the progress of SDGs and their partnerships.