Charitable giving is quickly transforming into philanthropic investment. Donors (especially major donors and foundations) no longer want to give because their heart breaks over the severity of a problem. They want to invest in a solution that will solve the problem. This shift in philanthropy has been described in technological terms as a shift from Philanthropy 1.0 to 2.0.
If philanthropy 1.0 focused on the need, then philanthropy 2.0 focuses on a sustainable solution that is making a verifiable difference. It is no longer good enough for a nonprofit to ask for support by stirring our emotions. With over 1 million 501(c)3 organizations, we now have to discern which program model can comfort our broken hearts with sound solutions.
Donor fatigue in the face of ever-growing “asks” is pushing this investment approach to charitable giving. One new gold standard in giving is project sustainability. A donor wants to know that at least part of their donation is “seed money” that funds a partially self-sustaining and locally adapted program. They do not want to be asked for the same donation next year to support the same activity. There is simply not enough money to go around. So donors are demanding nonprofits to more creatively design and sustain their important work.
To capture this transition in philanthropy, I have created a presentation and have begun delivering it to different audiences in the past month. You can check out the pdf version posted on the Excellence in Giving website by clicking here. I hope it motivates you to give more wisely and to comfort your broken heart with investments in proven or promising solutions.
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