Even the wealthiest philanthropists need help in solving society's toughest problems. It's easy to overestimate what you can actually contribute—so you have to be ruthlessly realistic about the resources you are willing and able to invest.
How can I best use financial resources to achieve impact?
Besides making direct grants, you can fund crucial supporting activities (such as publicity), or invest creatively by putting your balance sheet to work (through debt or equity), or support for-profit activities that create social good.
What non-financial resources can I bring to the table?
Your time, expertise, and unique personal networks can be extremely valuable in the right circumstances.
What am I willing to contribute to this work?
Consider carefully your own expectations, tolerance for risk, and where each initiative fits in your philanthropic portfolio. This will enable you to identify a commitment level—both financial and otherwise—that is commensurate with the task at hand.
Armed with these answers, you can define a role for your philanthropy that both contributes to the outcomes you want to see and matches your personal circumstances and preferences.
Case Studies
-
The Bridgespan Group
Peter and Carolyn Lynch take a portfolio approach to their philanthropy, and Teach For America is just one example of how they’re returning outsized impact for their investment dollars.
-
The Bridgespan Group
Too often, it’s not the academics that bring down a charter school; it’s the building. Together with Civic Builders, hedge fund manager Brian Olson is offering leases to charter schools—under one condition.
-
The Bridgespan Group
Philanthropist Jeff Walker began with a desire to help nonprofits struggling with technology, discovered that a nonprofit with a similar mission already existed, and built it into a thriving national network.
Philanthropy Roundtable
Memphis donor Barbara Hyde supports local K-12 education reform and community revitalization. In education, her foundation has a three-pronged approach, working with the public school district, public charter schools, and private schools that serve low-income kids.
Deeper Dives
-
The Center on Philanthropy at Indiana University
The Center on Philanthropy at Indiana University offers a resource for data hungry donors. The Million Dollar List tracks publicly reported charitable gifts of $1 million or more, searchable by factors such as geography, dollar amount, type of charity, donor, or nonprofit organization name. You can see which causes your peers are funding, what gaps in funding exist, and which of your causes are already receiving large gifts. Beyond the data, you can also find collaboration partners—donors with causes similar to your own—so that you don’t have to fly solo.
-
Rockefeller Philanthropy Advisors
Philanthropy needs to engage 100 percent of its assets to create social and environmental impact in addition to financial returns. (Click the link above for a summary. To download the full report, click here.)
-
Edna McConnell Clark Foundation
Co-funding is supporting the growth and sustainability of three highly effective youth-serving nonprofits.