By Amy Phipps
In the world of philanthropy, some things never change. Nonprofits doing great work inspire donors who want to give. But the “hands-off” approach of the past is changing. We are moving into a different world, one that is more participatory, and many donors see their role as being more than “just a giver.” They want to make an investment – monetary, emotional, or societal – that generates meaningful impact.
Consider the case of Mark Zuckerberg, co-founder of Facebook, who in December pledged that he and his wife would give away 99 % of their net worth. He’s doing that in a new way, though – his charitable foundation has been set up as a limited-liability corporation rather than a charitable trust. The LLC provides more flexibility (while still retaining tax benefits) that may allow the family to act more quickly when they see an opportunity for meaningful involvement. Zuckerberg has been criticized since then for making a move that seems less charitable, but the bottom line is that those who can understand his motives (and those of others like him) will be more likely to reap the benefits.
Forward-thinking grantmakers are constantly thinking about how to help nonprofits focus on long-term mission fulfillment. At the same time, they need to be sure they exercise due diligence in their grantmaking. Flexible funding is coming into play as a bridge between the two worlds. Grantmakers give nonprofits the flexibility to address urgent issues and develop their own solutions. Spending timeframes and reporting requirements can also be made more flexible, allowing grantees to spend more time working toward their mission, while preserving grant makers’ need for impact measurement. Grantmakers for Effective Organizations (www.geofunders.org) has some excellent information on how these investments can be managed as a “win-win” for both sides.
High-impact philanthropy has a new player in San Antonio — a local branch of Social Venture Partners launched here in March. Created in Seattle 14 years ago, Social Venture Partners borrows from venture capital practices to direct hands-on investments to support nonprofit organizations’ long-term sustainability. With more than 3,500 partners in 40 cities, they focus on long-term solutions and systemic change. San Antonio executive director Harriet Harmon Helmle is gathering investment partners and researching local issues this summer; nonprofit partners will be approached at a later date.
So what does this mean to you? The common denominator is a desire for greater impact. When you are working with donors, be sure you understand their reasons for giving and the impact they’re looking for. Fine-tune your messaging so that it focuses on your impact. And remember that, regardless of the giving vehicle, it’s still the difference you make that inspires donors to give.