Connected Philanthropy

We began Momentum with a discussion about the importance of being our best selves in order to take advantage of the values and rhythms of the Connected Age. For foundations being their best selves means sticking to seed funding and funding of short-term projects. If they do, grantees will be able to stop bemoaning the short-term nature of foundation funding because they will expect it. When the best selves of foundations become clear to both foundations and their grantees their relationships will be much more constructive and positive. Activist organizations will be able to at last put foundation funding into perspective. Grants should be project-focused and short-term. Activist organizations should build a broad base of individual donor support and earned income to be sustainable.

Given this orientation, the Connected Age can positively affect giving in a variety of ways. The growth of giving circles is a wonderful example of ways that donors can increase philanthropic giving through networks of friends and colleagues. Giving circles are groups of people who come together—some casually, others more formally—as networks of like-minded people, to pool their philanthropic dollars to give to causes. A study by New Ventures in Philanthropy in 2005 analyzed seventy-seven different giving circles, most of which had been started since 2000. They range from informal gatherings of friends sharing a potluck dinner and deciding where to donate their hundreds of dollars, to structured organizations like Social Venture Partners, legal entities with bylaws. Seventy percent of those surveyed conduct site visits to potential grantees. Giving circles are attractive to women donors who like the social-network opportunities as well as the increased clout of their giving. The circles create trusted networks of friends who talk and learn about activists and activism, a boon for women interested in philanthropy.

Connected philanthropy mirrors the trends and values of connected activism: agility, openness, and networks. Those who choose to change will find a large number of options for engaging their potential and current grantees.