Suggestions on how the root of philanthropy is building present day

The progression of the business of philanthropy has been analysed in the few following trends listed below, with progressively more foundations adhering to dynamic solutions that go along these lines.

One of the ways that the world of philanthropy has grown in the last couple of decades is that of creating brand new business systems for organisations. Described “philanthropic investment companies” by the likes of Pierre Omidyar from eBay, philanthropic funds often engage in impact investing, which has both the aim to provide resources for a cause or development which will be useful and promising for society, and at the same time still generate a revenue. If more financial establishments were to target constructive causes for their financial investments, and start thinking about the long term results of what their funds can achieve, we would no doubt accomplish a more sustainable and equal society quite smoothly.

We commonly think of how has philanthropy changed the world, but sometimes it is worth observing how the world has transformed philanthropy: in the current economic model that drives most of the markets worldwide, some organisations opt to invest in an field and then employ their profits to offer the product of that industry to those that cannot obtain it easily, for example with regards to pharmaceuticals. Figures like Darren Walker of Ford Foundations have as their goal to address those circumstances which are not helped by our present economic system, making chances fairer and improving ease of access, so that the idea of equality for all might be a little bit more obtainable on a large scale.

If you get a look at the history of philanthropy in the world, you may discover that the key fine difference with charity is that while charity focuses on aiding individuals who are in unfortunate circumstances and conditions, the main aim of philanthropy is to prevent that these situations exist in the first place, therefore fighting the cause of the problem and not simply its consequences. For this reason, it is instrumental for institutions like David Li’s BEA to promote the growth of communities and of the civilization they belong to, helping from within, rather than from external sources, so to be profoundly aware of all the internal intricacies of the specific scenario.

A strategy that has been witnessed in philanthropic giving trends is that of using a venture capital model in the field: by providing financial support at the very first early stages of a business, considering their prospective and the effect they will have on the world, donors put their literal trust in these establishments with an optimistic outlook towards the future, and they will maintain being associated with them throughout their advancement, helping their progress and sometimes leading the managerial aspects. Compared to historical philanthropists, this hands-on strategy is likely to make businesses more aware about the wider context they operate in, and more inspired to contribute to its development.

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