Interesting piece from Third Sector on the future of philanthropy.
Sir Ronald Cohen suggest in the future there should be a move away from a culture of ‘giving’ to projects and towards ‘investing’ in the (socially entrepreneurial) organisations which are actually the engine driving the benefits which become attributed to projects in order to secure donations.
Sir Ronald Cohen tells the Lord Mayor’s Charity Leadership Programme, “I realised that the system of philanthropy based on charitable giving did not allow social organisations to grow to the necessary scale. Philanthropists give money to a service provider for two to three years, then go elsewhere, and they say ‘don’t waste any money on overheads’. Yet if business entrepreneurs had come to me at the private equity firm Apax with business plans that involved investing nothing on overheads I would have shown them the door.” Instead he suggests that social organisations or entrepreneurs should be able to raise a social impact bond, rather than pleading for donations.