Philanthropy's Shift in the "Impact Era"

The "impact era" has more philanthropists framing their investments in decisions focused on having deeper social impact. According to a new piece in Forbes, this shift can be understood in relation to other impact-focused enterprises, and nonprofits are learning to refocus their strategies to maximize that impact.

The article shares stories of nonprofits’ efforts that showcase how leaders seek to concentrate their strategies for demonstrated outcomes, including the power of cash transfers in extreme poverty alleviation or big data in developing “scalable policy solutions,” among others.

Regarding how the nonprofit sector is entering the "impact era," authors William F. Meehan III and Kim Starkey Jonker state:

Philanthropists, too, are focusing more tightly on impact, asking basic questions about mission, theory of change, and impact measurement as they decide where and how to donate. Indeed, the world of charitable giving is rapidly transforming as high-net-worth individuals turn their attention from the challenge of creating wealth to that of creating social impact. This shift in focus is happening earlier in individual careers and being implemented with greater strategic intentionality than was the case with previous generations of philanthropists.

“The scale, timing, and focus of the portion of global wealth that will go to philanthropy in this era remain to be determined and are very much subject to influence,” the article’s authors recount, “which is why nonprofits and their leaders must prepare themselves for this moment” and look toward leverage in philanthropic practice.

Read the full article on Forbes.

Image: Pixabay/Nattanan