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The Foundation presented research in global philanthropy trends

The research was carried out by Center for Philanthropy Development

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The Vladimir Potanin Foundation presented the working paper on the key trends in global philanthropy development. The strategic goal of the project is to identify optimal ways of philanthropy transformation and provide NGOs with adequate information in their transition to the new, post-crisis development.

“During preparation of this working paper, some experts predicted the future economic crisis. However, nobody could foresee the combination of the global pandemic and global recession occurring at the same time. With time, we will know to what extent this situation will influence global philanthropy development. In my opinion, the majority of identified trends will remain and strengthen. After solving the acute problem of survival, NGOs will focus on effectiveness and sustainability issues. This means future development of the sector in terms of interaction with donors and local communities, collaboration within the sector and strategic approach to programs implementation. Moreover, NGOs and society will face new, unknown social problems and the solution of these problems will include principles of venture philanthropy and dynamic technological context”, noted Roman Sklotskiy, the Director of the Center for Philanthropy Development, the Vladimir Potanin Foundation.

Opinions of leading international experts and philanthropic organizations on factors, contexts and principles influencing philanthropy of the future have been analyzed within this research. The key findings presented as 11 key trends may serve as a guidance for NGOs.

Transparency philanthropy. Charitable organizations will strive to become clear and consistent in communications with public increasing transparency of data and activity in terms where grants go.

Collaborative philanthropy. Donors and NGOs at all levels will collaborate aggregating or pooling their capital to focus on achieving specific goals.

Impact philanthropy. Philanthropy will focus on solving the complex problems, achieving social impact and enhancing its efficiency in the long-term.

Strategic philanthropy. Donors will focus on a specific area increasing probability of making a change and being able to measure it.

Venture philanthropy. In addition to financial grants, charitable organizations will be supported by experts and professionals using business approaches.

Data-driven and evidence-based philanthropy. Donors’ and NGOs’ activity will be determined not by emotions and personal experience but by data analysis. Improved access to data will shift donating from being reactive and responsive to becoming more pro-active and impact driven.

Donor-centric philanthropy. Smaller, more nimble local charities who can link spent money to a specific result are far more attractive to donors. Along with technology, donor centric-philanthropy has contributed to the rise in popularity of crowdfunding platforms and donor-advised funds.

Place-based philanthropy. Recent years have seen a resurgence of interest in philanthropy’s role in place-based change. Place-based philanthropy is seen as a tool for civic engagement and collective investment in local social projects.

Technological context. Digital technology has changed the character of communication and interaction of charities with donors, enabling deeper learning, engagement and transparency.

Generation context. Generations’ change leads to transformation in philanthropy: millennials approach philanthropy with a more global, social and inclusive outlook and they are more likely to have incorporated new philanthropic trends in their giving.

Legal context. There is a trend towards developing a single European philanthropy market: better recognition of philanthropy in national and European legislation, support of cross-boarder philanthropy across EU and decrease of barriers to leverage the impact of donors’ and foundations’ spending for public good. 

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