The New Wave of Philanthropy

As the world makes its way into the unknown realm of a "new normal," everything about society is changing. The way we work, play and congregate has changed dramatically, and the sphere of philanthropy is no exception.  

The new wave of philanthropy, and an evolving generation of givers, is focused on making the future better for all of us in a measurable way. From the causes that are championed on a wide-reaching scale to methods of giving and the selection of nonprofits to support, the evolving age of philanthropy is different than what we're used to, but in all the best ways. 

Teaming Up for a Purpose

Some of the major shifts we're seeing as we usher in a new wave of philanthropy are the shift in purpose and methods. Givers and organizations are realigning their priorities and actions to create a more cooperative, collaborative environment.  

Individual givers, companies and foundations are increasingly joining forces to make a more significant impact. In a recent report from KPMG's analysis of Disruptive Philanthropists, a survey revealed that "63 percent of modern philanthropists agree that combining efforts with third-parties needs to happen to deliver true impact."

It's not just money that new philanthropists are throwing at world problems. More than ever, philanthropists are choosing to donate their time and talents (in addition to financial gifts) to make a difference. Time and expertise are just as valuable as cash in philanthropy but can be challenging to come by. As modern philanthropists continue to join forces, the combined power of resources is making major waves.

Establishing a Giving Structure

In many cases, it can take years or even decades to reap the rewards of a philanthropic effort done well. Clean water initiatives, hunger relief and housing intervention, can't be completed overnight, and even a year's worth of donations and action can sometimes feel like a mere drop in the bucket. 

This time delay is one of the reasons many philanthropists opt to give in a more established or structured manner by enacting longstanding programs or foundations. Family and corporate foundations and legacies can be much more easily managed both short and long term, with funds directed in a reliable manner and the continuation of efforts even in the founder's absence or earthly departure. 

Family foundations can also create a sense of identity for large or disparate family groups, giving them a platform to honor a specific family member, encourage other families to join a cause, or simply tie past and future generations together for a greater purpose. 

Measuring Impact

In a world where data and analytics are creeping into every aspect of our professional and personal lives, philanthropy is also seeing a significant metric impact. Many of today's philanthropists are increasingly earnest in their capacity to measure the impact of their efforts. 

For many philanthropists, the tangible impact is the most important factor in discerning continued or new giving. Being able to see or measure the effect their contributions have collectively made delivers a sense of satisfaction, purpose and inspiration to keep going. 

Unfortunately, the measurement metrics used to define success in the corporate world don't always translate to a philanthropic platform. As a result, philanthropists and giving organizations have had to change how they read, measure and report on the success of their efforts. This often means more site visits, established KPIs, director briefings, beneficiaries' formal reporting, and third-party validation. 

While these updated measures don't always provide the numerical, tangible data we're used to seeing in a corporate environment, they create the opportunity for philanthropists to meet and engage with the causes they support. Seeing their investment at work enhances the emotional investment and gratification that impactful giving delivers. 

The Growing Future of Giving

Global philanthropy may change, but the passion and hunger to make the world a better place remains steadfast. While modern philanthropists are becoming more intentional and informed about their chosen causes, the desire and purpose behind their efforts remain the same. As we move into this new wave of philanthropy, the reach and engagement newcomers bring to the table cannot be ignored. As we develop new ways to measure and champion philanthropic efforts, modern philanthropy's scope is undoubtedly on the precipice of a wonderful explosion.