The advancement of the sector of philanthropy has been analysed in the few following trends listed below, with an increasing number of foundations following dynamic avenues that go along these lines.
We frequently consider how has philanthropy changed the world, but it could be worth observing how the world has altered philanthropy: in the current economic model that controls most of the markets worldwide, some organisations decide to invest in an industry and then employ their revenue to offer the product of that sector to those that cannot obtain it easily, for example in terms of pharmaceuticals. Figures like Darren Walker of Ford Foundation count as their objective to address those instances which are not helped by our present economic system, making chances fairer and improving availableness, so that the notion of equality for all might be a little bit more obtainable on a large scale.
A method that has been witnessed in philanthropic giving trends is that of using a venture capital model in the business: by offering financial support at the very first initial stages of a business, considering their potential and the effect they will have on the world, donors put their literal trust in these establishments with an optimistic outlook towards the future, and they will keep on being connected with them throughout their growth, assisting their progress and sometimes guiding the managerial aspects. Compared to historical philanthropists, this hands on method is likely to make companies more aware about the wider context they exist in, and more motivated to contribute to its growth.
One of the aspects that the world of philanthropy has developed in the last few years is that of creating brand-new business models for organisations. Defined “philanthropic investment enterprises” by the likes of Pierre Omidyar from eBay, philanthropic funds often work in impact investing, which has both the aim to give resources for a cause or innovation which will be beneficial and good for civilization, and at the same time still generate a gain. If other financial establishments were to target constructive causes for their investment decisions, and think of the long term impacts of what their funds can achieve, we would no doubt achieve a more sustainable and equal society quite smoothly.
If you take a look at the history of philanthropy in the world, you may realise that the pivot subtle distinction with charity is that while charity focuses on aiding individuals who are in unfortunate circumstances and conditions, the main aim of philanthropy is to prevent that these situations exist in the first place, therefore fighting the cause of the problem and not only its consequences. For this reason, it is vital for institutions like David Li’s BEA to promote the development of communities and of the civilization they belong to, helping from within, instead of from external sources, so to be profoundly aware of all the internal subtleties of the specific circumstance.