Conference Presentation, Panel
Philanthropy and Democracy in the 21st-Century
- Blue Meridian Partners intends to empower social sector leaders to scale proven poverty programs, expecting funded organizations to grow substantially and reach more young people, with the goal of replenishing capital every several years to pass a market test.
- The sector anticipates amassing resources for a value-added role in addressing poverty and inequality, though George Pavlov notes that investments carrying higher risk than government tolerance carry a strong probability of financial loss.
- TOMS plans to continue distributing shoes, sight, and water through an adjusted ecosystem approach, while committing to learn from critics and modify business models as the alternative of inaction is deemed worse.
- Panelists project that consumer voting with wallets, particularly among Gen Z and younger millennials, will increasingly demand radical transparency regarding social responsibility.
- Small innovations with high scaling potential are expected to rise in response to populism-driven disruption, alongside a continued expectation that government support for social programs far outweighs philanthropy.
- Long-term social impact plans are projected to require 10 to 20 years to yield results, with the scope of the work described as barely scratching the surface of its full potential.
- Unlike traditional investments where investors might sell stock, social sector participants note they cannot liquidate their assets, reflecting the unique nature of this context.
- Rob Reich suggests laws should mandate that foundations spend down assets 20 to 40 years after the primary donor's death, arguing that perpetual endowments represent the "dead hand" of the donor strangling future generations.
- Significant structural hurdles are acknowledged, including the difficulty of deploying large sums like $200 million due to a lack of capable execution partners, and the projection that campaign finance reform will likely not occur despite its potential to align government timelines with philanthropic needs.
- George Pavlov expects a criminal justice funders forum to foster cooperation and overcome the "80% overlap" theory of change, while anticipating that democratizing ideas and grant opportunities will improve marketplace decision-making.
- Philanthropy is expected to fund practical, "unsexy" infrastructure such as sewer systems and toilets, and to influence government priorities by taking risks and demonstrating greater efficacy.
- Specific investment niches include basic research where the National Institutes of Health maintains a 77% translational to 23% basic funding split, and enforcing data publicization or disease reporting where government lacks adequate mechanisms.
- Opportunities for preventative and alternative interventions in child welfare at the state level are expected to be substantial and rapidly scalable statewide.
- The envisioned future includes philanthropic assets contributing to a diverse civil society that pilots ideas for public policy, and a state where all voices agree on a vision for a thriving humanity.