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| Thought Leaders: Philanthropy |
Schwabification of Philanthropy
Carla E. Dearing
02/01/2007
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New entrants to the philanthropic marketplace that could
expand to scale using this model include GlobalGiving, which provides giving
opportunities from 262 intermediary partners, and DonorsChoose, which matches
project needs posted by public school teachers in five local markets with donors
willing to directly fund those needs.
Goldman Sachs-style Philanthropy: As
we know from watching the Schwabification of the financial services industry,
there will always be demand for value-added intermediaries. If, for example, you
want to know where the best deals are being made, you go to Goldman Sachs. The
same will become true for players in the philanthropic market that add unique
value by demonstrating better investment processes, research and relationships.
Such guidance is imperative for larger charitable investments. A handful of
leading community foundations and other public charities, such as the Acumen
Fund and the Tides Foundation, have begun retooling to focus on these
value-added elements, but the dominant player has yet to emerge.
Together, these models create the potential to scale meaningful donor
engagement among a greater portion of the 430,000 households in this country now
worth $10 million or more. For my money, the future of philanthropy can’t come a
moment too soon.
| Carla E. Dearing is the president and CEO of Community Foundations of America, a
national nonprofit based in Louisville, Ky., that works to enhance the scale and
impact of philanthropy. |  |
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