Four Planks of Effective "Catalytic Philanthropy"

Accountability for achieving measurable results is one of four cornerstones of effective “catalytic Philanthropy”“Catalytic philanthropy” attempts to create a new perspective around effective philanthropy. The focus of Mark R. Kramer’s article, published in the Stanford Social Innovation Review is American philanthropy, but the learnings are applicable in effective philanthropy projects worldwide.

Kramer’s article reveals depressing news about the effectiveness of American philanthropy:

Between 1980 and 2005, U.S. annual charitable giving in constant dollars grew by 255 percent and the number of nonprofits more than doubled to 1.3 million. Today, per capita giving in the United States is three times greater than any other country in the world. Yet, during this same 25-year time period, the United States dropped from second to 12th among the 30 countries that are members of the Organisation for Economic Co-Operation and Development (OECD) in basic measures of health, education, and economic opportunity. (As a footnote, remember that large portions of American charity are given to religious institutitions, not necessarily focused on health, education and economic opportunity.) Link OECD

FSG Social Impact Advisors, Kramer’s consulting firm, has investigated the key characteristics of successful philanthropy, supported in part by the Bill and Melinda Gates foundation. A key aspect of this new approach to philanthropy involves “responsibility for achieving results.”

Proponents of “new philanthropy” — under any number of new names — bring a more business-minded approach to the cause, requiring responsibility for results. To date in many cases, results focused on an ability to raise money and not bring effective results from its investment.

Kramer’s four key touchstones of “catalytic philanthropy” are:

• Responsibility for achieving results

• Mobilize a campaign for change, translated “Lead Boldly”

• Use all available tools

• Moving forward

Catalytic Philanthropy is an excellent read for anyone interesting in building effective, philanthropic organizations. Anne

Catalytic Philanthropy, FSG Social Impact Advisors