Philanthropy and Social Investing

A. Description of the issue

The concept of philanthropy has gradually evolved from simple charity to social investing for development. Many see this new form of philanthropy as a vital part of social safety nets in societies around the world. For donors, picking an organization to fund is a challenge. The sheer breadth of issues and projects can be confusing and sources of independent advice are limited. Many donors struggle with the dilemma of having to focus their efforts on clearly defined, limited issues without knowing whether they are having the greatest possible return in terms of impact. Generally, philanthropy is becoming more hands-on, dynamic and results driven. However, measuring performance is difficult. The impact of a project is hard to determine because it is difficult to prove causal links between concrete actions and observed changes in the target area.

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B. Dimensions
Corporate philanthropy: Minimizing harm and promoting social benefit are two aspects where corporations can contribute positively to society. Many corporations support international organizations, governments, civil society and charitable institutions in an effort to incorporate strategic philanthropy into their corporate responsibility activities. Social entrepreneurs: Philanthropists have recently become more interested in social entrepreneurship as an innovative and efficient way to achieve sustainable results. Gender issues: Taking into account gender aspects is critical to the success of social projects. What are the best strategies for mainstreaming gender issues and womens leadership in philanthropic work? Charity gap: The vast majority of philanthropists trust their donations to help those less fortunate than themselves when, in fact, experts estimate that less than one-third of the money that people give to nonprofits actually reaches the poor and needy. Goals and strategies: In engaging in philanthropy, how does one specify the underlying values, goals and strategies? How hands-on or hands-off should philanthropy be? Should philanthropy rely on proven approaches or should it be more risk-taking? What is the best way to establish the necessary trust between the different actors? Competitive philanthropy: Traditional notions of low involvement, grant-giving philanthropy are being challenged by the rise of competitive philanthropy, increasingly blurring the lines between the non-profit and corporate worlds. What is the impact of the new, competitive business approach to philanthropy? Philosophy and ethics of philanthropy: Contributing to the common good takes many forms, from individual acts of philanthropy to overarching patterns of social activism. Why do people give money to worthy causes? Measuring impact: In recent years, numerous initiatives to measure impact more effectively have been launched including communities of practice, online platforms, standards and certification mechanisms, ratings and stakeholder reviews. Financial turmoil in global markets: At a time of crisis, philanthropic investments are at risk. The huge amounts of shareholder wealth lost in recent months will slow down giving and charities will have to adapt.

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List of Members
Members
*Vikram K. Akula, Chief Executive Officer and Founder, SKS Microfinance, India *Brizio Biondi-Morra, President, AVINA, Costa Rica *Matthew Bishop, New York Bureau Chief, The Economist, USA *Peter Blom, Chairman of the Executive Board and Chief Executive Officer, Triodos Bank, Netherlands Paul Brest, President, The William and Flora Hewlett Foundation, USA *Jean-Philippe de Schrevel, Founder and Managing Director, Bamboo Finance, Switzerland Stephen Dodson, President, Parnassus Investments, USA *Jed Emerson, Senior Fellow, Generation Foundation, USA *Martin J. Fisher, Co-Founder and Chief Executive Officer, KickStart International, USA *James R. Fruchterman, President and Chief Executive Officer, The Benetech Initiative, USA *Ronald Grzywinski, Chairman, ShoreBank Corporation, USA Kurt Hoffman, Director, Shell Foundation, United Kingdom *Christine Letts, Lecturer in Public Policy and Executive Director, John F. Kennedy School of Government, Harvard University, USA *Asad Mahmood, Managing Director, Deutsche Bank Social Investment Funds, USA *Jacqueline Novogratz, Founder and Chief Executive Officer, Acumen Fund, USA *Alvaro Rodriguez Arregui, Chair, Board of Directors, ACCION International, USA *Sean Stannard-Stockton, Director, Tactical Philantropy, Ensemble Capital Management, USA *Kumi Tsunoda Fujisawa, Co-Founder and Vice-President, Think Tank SophiaBank, Japan *Arthur Wood, Head, Social Financial Services, Ashoka, USA * Confirmed participation in the Summit on the Global Agenda
Council Manager: Matthias Catn Forum Lead: Martina Gmur Senior Director: Fiona Paua

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