Emerging Philanthropic Trends

Has it really been that long since my last post? Guess I've been busy.

Not to be too serious in this post, but I've been asked recently the same question by several clients: "What emerging trends in philanthropy impact the way we communicate." So I thought I'd publish a few of my responses.

The last decade has brought about fundamental changes in the way we communicate – from minute by minute Internet news cycles, to demanding and varied stakeholders with new expectations, to complex social media platforms where user-generated content is increasingly the valued norm. Here are a few trends in grant making that present considerable and more sophisticated communications opportunities for all funders.

• Collaborative funding and knowledge share: Co-funding of financial resources among (mostly) private foundations toward a common goal is a development in grant making that has been gaining momentum but has gotten little broad-based attention. The rapid growth of collaborative funding models such as venture philanthropy, growth capital markets and funding syndicates have been able attract more capital than some of the country’s largest community foundations. From a communications perspective, collaborative funding is allowing foundations to become more open about their work, even creating feedback and sharing systems for the sector, communities and individuals like never before.

• Inherent desire to give locally: Donors and corporations alike are presently focusing much of their time and dollars on supporting local needs. Even multi-national corporations are seeking ways to align their support with activities likely to impact local operating communities. Leadership in a particular area is often defined by being able to bring together all key stakeholders to address an issue, on a global, national and local level. For large organizations, this is a monumental task.

• Marshalling the troops: More and more C-suite executives are engaged in setting and communicating the philanthropic vision of a company, a reversal from past decades. Employees are still the “first audience,” and corporate communicators know the principles of “change communications” apply to drive the corporate philanthropic vision, especially when that hoped for change is visible on the community level. Employees must be able to respond to changing, and often varying, societal expectations in the many geographies and cultures they serve.

• “Voluntary” and “mandatory” initiatives finding common ground: The lengthy debate about the relevant merits and effectiveness of “voluntary” initiatives vis-à-vis measures imposed by government is giving way to recognition of a substantial middle ground. Governments themselves are encouraging creative private-sector led efforts – as long as these are accompanied by clear criteria for participation, standards for accountability, transparent reporting, and engagement with non-business stakeholders. Navigating the different programs involving other businesses, local laws, NGOs, “socially responsible” investment funds, academic institutions, and others, have both new opportunities and challenges with each, also creating unexpected partnerships.

• Action gets you noticed: Breaking through the news clutter on corporate philanthropy is a challenge. To start, who can really compete for ink with Bill Gates and Warren Buffet who offered their “Giving Pledge” to billionaires who agree to commit half their fortunes to charity? Real leadership is action for the cause, and these actions are driving media attention. No longer is the dollar or pledge amount news when mega philanthropists trump most other giving. Communicators must be smart about how they drive message and reputation locally and globally.

These and other trends have a wide-ranging impact on all giving. However, in communications, form follows function and if companies can stick to a differentiating message and focus on real impact, the rest is a piece of cake. Don't you think?

Hyper local philanthropy new trend for the decade

As we look ahead to the new year, new decade in fact, the economic downturn provided the tipping point toward a new trend in hyper-local philanthropy that will impact the strategic planning for corporate philanthropy executives for years to come. Not to say that giving on a global scale won't be prolific and even grow, but Americans in particular will be taking a closer look at the needs at home, and how local corporate giving is bettering their communities.

Tracking a general renewed focus and engagement in community activities like local school advocacy, volunteerism and pot luck dinners, corporate philanthropy in particular will be hard pressed to support anything that does not fall within the scope of its core business or the interest of the communities in which it serves or operates. Big marketing and sponsorship dollars will (slightly) give way to highly focused local giving that is not only uniquely aligned with business, but better designed to demonstrate measurable impact. Consumers and shareholders alike will demand to see and understand the real impact of these charitable dollars on the business and in communities. Proof, in numbers, will be critical.

Helping businesses make the link from global to local and back again will take real creativity and specialty understanding of “generational” consumer tendencies particularly where giving is concerned. The saying "all giving is local" will be especially true in the coming years, given the economy. However, the maturation of digital Millennials will create an explosion of venture philanthropy that will reshape the giving scene and progressively demonstrate the power of the Internet and social media to create conduits for giving virtually overnight. These and other "user powered" modes of philanthropy will continue to widen the gap between philanthropy and programs designed by corporations to bolster their reputations. Grassroots giving will be the place to seed the changes all Americans are hoping for.