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How To Make Philanthropic Collaborations Succeed

Stanford Social Innovation Review
This article is deemed a must-read by one or more of our expert collaborators.
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How To Make Philanthropic Collaborations Succeed Giving Compass
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Giving Compass’ Take:

· The authors take a look at philanthropic collaborations and why successful partnerships need clear expectations.

· How does collaboration catalyze philanthropic efforts? 

· Check out this article to see the benefits of collaborative philanthropy.


For more than a century, donors have pooled their resources to create change through community foundations and organizations like United Way Worldwide, immigrant mutual aid societies, and faith-based giving circles. In recent years, however, the scale of investment and number of independent funder collaboratives have accelerated dramatically. For example, more than 70 percent of aggregated giving funds—one type of collaborative—have emerged since 2000, with major funds like Blue Meridian Partners, Co-Impact, and the END Fund springing up just in the last few years. Each of these has the goal of aggregating tens—or hundreds—of millions of dollars toward the most promising social sector initiatives.

Given this surge, and the corresponding power that donor-driven collaboratives are exerting in the sector, it’s no surprise that funder collaboration has been a subject of intense interest and inquiry. Our collaboration literature review identified more than 125 major articles and reports by practitioners and academics, including Phil Buchanan of the Center for Effective Philanthropy, Cynthia Gibson and Anne MacKinnon of Grantcraft, Ralph Hamilton of the University of Chicago, Rockefeller Philanthropy Advisors, Bill Schambra of the Hudson Institute, and some Bridgespan colleagues. These resources describe different types of collaborative models, the expected benefits of collaboration, and practices often associated with a collaborative’s success.

But our review also revealed important knowledge gaps, particularly around the foundational questions of whether funders should pursue collaborative action, and if so, what distinguishes failure from success. These gaps exist in part due to the inherent difficulty in studying collaboratives. There are no perfect control groups for comparison purposes, which makes it challenging to answer the most critical question: Are they worth the effort? Additionally, variation across collaboratives and reticence to speak openly about failure makes it hard to distill common success factors and pitfalls.

Read the full article about philanthropic collaborations by Alison Powell, Susan Wolf Ditkoff, and Fay Twersky at Stanford Social Innovation Review.

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Learning and benchmarking are key steps towards becoming an impact giver. If you are interested in giving with impact on Nonprofit Sector take a look at these selections from Giving Compass.

  • This article is deemed a must-read by one or more of our expert collaborators.
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    Five Ways Microfinance Must Respond to the Digital Age

    Giving Compass' Take: •MicroSave founder Graham Wright lists the ways that microfinance institutions should utilize financial technology to implement global practices. • How can donors help spread awareness about the impact of fintech on MFIs? • Read more about global prosperity through fintech.  How microfinance institutions can go about leveraging fintech in their products and practices? MicroSave founder and managing director Graham Wright laid out five basic options: The first way MFIs could potentially use fintech is to set up their own e-money system, he said, like Equity Bank in Kenya. Another option for MFIs is to use their outreach to create a cash-in/cash-out agent network. A third option is simply to “ride the rails,” he said, using the payments systems that a fintech or mobile money system provide in order to make loan disbursements or repayments. The fourth option is to use fintech’s data capability to facilitate communication, loan decision-making, and other essential banking functions. “The fifth option that we always put on the table for MFIs is to wait and watch,” he said, “because everything is moving so quickly, it’s terribly difficult to figure out what to do, and we’re not really sure which of these fintech companies will survive and blossom into the future. Wright also gave a run-down of how fintech is transforming financial service delivery in India, a country that has become the global hotbed of digital financial inclusion. He described how MicroSave is helping the Indian government with the gargantuan task of digitizing government-to-person payments: These amount to about $35 billion, he said, and the objective is to digitize almost all of them. Read the full article about fintech microfinance by James Militzer on NextBillion. 


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