Giving Compass’ Take:
• Dara Major discusses the criticisms of legacy foundations and why new philanthropy LLCs get more praise for taking risks.
• Do you agree with Major’s assessment? How should critiques of philanthropy play into your philanthropic strategy decisions?
• Read about one philanthropic legacy focused on empowerment.
For the last decade or so, the philanthropic sector has been struggling to adapt to changing external conditions — including government devolution, the rise of the knowledge economy, the dramatic deepening of inequality, new players, new opportunities and a growing popular awareness of philanthropy itself — and by extension reckoning with its very purpose. Some major, mainstream national conference themes throughout this period can be distilled as:
- Should a foundation have goals and strategies?
- Should a foundation engage stakeholders?
- Should a foundation invest in things that are counter to its mission?
Yikes. What makes this sector unique is not that it wrestles with these questions, but that such a large segment of it struggles to align practice with purpose.
For instance, according to a recent study by the Center for Effective Philanthropy, fully two-thirds of foundation CEOs believe it is possible for foundations to make a significant difference in society – but few think they are actually doing it. Why? Most cited internal organizational barriers that are under their own control to address: too many goals, lack of agreement on goals, undisciplined implementation of strategies, lack of long-term commitment, and… fear.
Read the full article about legacy foundations and risk-taking by Dara Major at Philanthropy New York, via The Center for Effective Philanthropy.
If you are looking for more articles and resources for Impact Philanthropy, take a look at these Giving Compass selections related to impact giving and Impact Philanthropy.
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In addition to learning and connecting with others, taking action is a key step towards becoming an impact giver. If you are interested in giving with impact for Family Philanthropy take a look at these Giving Funds, Charitable Organizations or Projects.