Panel, Conference Presentation
Philanthropy in Transition: Better Ways to Do Good
Milken InstituteMelissa Stevens, Silvia Bastante de Unverhau, Alexandre Mars, Pamela Norley, Fay Twersky, Ambassador Corby Crimson, Stephanie
- Philanthropy is projected to undergo the fastest pace of change ever recorded, though this acceleration is predicted to slow in the future, with a transition characterized as a maturation process on an accelerated timeline.
- Over the next 30 to 40 years, an estimated $30 to $40 trillion is expected to transfer from baby boomers to Gen Xers and millennials, creating a dynamic where three generations of givers coexist and drive unprecedented change.
- The sector anticipates continued wealth creation and concentration, particularly among entrepreneurs with a higher propensity to give, alongside a rise in the millennial generation whose specific expectations for purpose will reshape philanthropic behaviors.
- Women are expected to drive significant change by introducing more wealth and real intention, while baby boomers remain more intentional and strategic, contrasting with millennials who are predicted to be more spontaneous, confident, and willing to engage immediately.
- Growth in philanthropy is expected to result in more foundations and greater capital than ever before, with impact investing projected to become mainstream and sustainable investing practices potentially making a massive global impact within two to five years.
- New philanthropic models will emerge as communication technologies make the world smaller, with business integration expected to make daily giving a standard option for everyone within seven years.
- Technology is expected to enable a frictionless giving experience similar to Amazon and provide slightly more transparency on organizational impact, though it is not expected to achieve perfect matching of donors to nonprofits or "nirvana" in identification.
- Grant-making processes using blockchain are expected to become faster, and AI is anticipated to reduce a pool of 3,600 applications to 200 for further evaluation, while specific tools like "Listen for Good" are scheduled for public release on the SurveyMonkey platform in 2020.
- Some new philanthropic models are expected to fail, requiring the sector to learn from these setbacks, while the nonprofit sector itself is expected to remain undercapitalized.
- Collaborative efforts and strategic impact are expected to progress at a slow pace, with collaborative models becoming the primary strategy for nonprofits rather than creating separate entities to address challenges.
- Developing countries are expected to take longer than the developed world to realize the benefits of collaboration and impact, while the US is expected to have not yet given enough traction to the UN Sustainable Development Goals (SDGs) as a framework.
- Fidelity Charitable is expected to increase donor knowledge regarding SDGs, with a strategic framework centered on these goals intended to allow the sector to purposefully solve major global problems by 2030.
- Volatility and a fast pace of change are expected to continue, with businesses predicted to adopt practices of giving a percentage of profits to remain competitive or viable in the next two or five years.
- A tendency for philanthropists to claim a desire for risk while ultimately choosing conservative causes is expected to persist, and there is a prediction that forcing people to give 50% of their wealth could cause them to refuse participation in the movement.
- If the sector does not adapt, the world is expected to face significant trouble, prompting a shift toward making philanthropy "everywhere" to avoid over-reliance on a few major donors.
- VR tools are expected to help children understand philanthropy and follow similar pathways, while crypto assets are projected to be liquidated and deposited into accounts rapidly, illustrating the integration of new financial instruments.