How Social Impact Giving is Changing the Course of Philanthropy
Philanthropic donors often give to significant institutions, including museums, universities, hospitals and other well-known organizations. In recent years, however, social impact has become a new trend, shifting the focus to the charitable fields. There is a new understanding of how nonprofit and other philanthropic organizations can help support improvement in the lives of others.
Social impact giving is characterized by achieving social progress, driving meaningful support to people and communities in need, and avoiding focus on other concerns, including maximizing the funder’s tax benefit or honoring someone’s name. Social impact strategy also emphasizes using evidence-based data when finding solutions to social issues. Cost and impact are also considered in this process so fund organizers can understand where their money will provide the most impact. As with many charitable endeavors, social impact philanthropy requires continuous learning so those who employ it can refine and improve its processes to make the most meaningful changes in their communities.
Lever for Change is one example of an organization using social impact strategies. A branch of the John D. and Catherine T. MacArthur Foundation, the nonprofit works to revitalize the world of philanthropy in Chicago by supporting organizations like Communities United and City Bureau, a South Side nonprofit journalism organization.
The nonprofit focuses on initiatives on a global scale with the insight they have on how everyday donors contribute to philanthropic causes. Since many philanthropists are averse to taking risks, many don’t contribute their money to institutions without long-established records. If it’s an institution, such as a college, that the donors attended or are intimately acquainted with, then they’re much more likely to donate. The benefit of doing so is that the donors understand the institution’s goals. Since the organization has longevity and will likely be around for a while, most philanthropists see these larger organizations as safe bets for their money.
However, focusing on social impact philanthropy helps some nonprofits that might not hold an extensive donor base encourage more giving to their organizations. As philanthropists seek to stay active in more social causes, large institutions will remain very important to society. Nonprofits play an essential part in actively trying to change systems that maintain societal inequalities or damage the climate. Smaller organizations can help mobilize and activate communities to provide them with on-the-ground support. Often, those organizations tend to be missed if philanthropists look for a certain degree of familiarity or safety in the organizations they give to.
For those who don’t have a large amount to spend on charitable giving, nonprofits allow for other opportunities to give back depending on how much they want to collaborate with others. Lever for Change, for instance, encourages their donors to give back money or time that allows them to collaborate when they can. Their Bold Solutions Network is a database of their programs where community members can get involved at the local and global levels. Whether it’s from environmental justice causes to racial equality, the database offers a list of projects at nonprofit organizations that the team has vetted to help people volunteer their time and become more engaged with charitable causes or find the projects that they wish to donate an amount of their choosing to.
Social impact giving can allow the philanthropic sector to flourish in the coming decades and the many causes they support. As people become more involved in helping out both locally and globally, support in numbers can help nonprofits reach new minds and provide opportunities for philanthropic endeavors in more well-rounded and accessible ways.