The full-spectrum nature of our work at Geneva Global (and Global Impact Ventures more broadly) gives us a distinctive vantage point into the dynamic and evolving landscape of philanthropy. On any given day, we could be advising the world’s largest private foundations and ultra-high-net-worth individuals, and by that same afternoon, we could be engaging directly with pioneering social entrepreneurs tackling the world’s toughest challenges. Although we do not have all the answers, our collective experience does give us a keen awareness of the evolving trends shaping the proverbial philanthropic zeitgeist.
The Economist magazine published a comprehensive special report this past January, delving into current trends in philanthropy—an insightful read worth checking out. Building on this, we’re sharing our unique perspective on the evolving landscape of philanthropy in 2024 – identifying three key factors likely to influence the sector:
There’s a positive shift in “mass market” giving, which is good news for everyone. In 2022, it was tough for organizations that depended on small donations from individuals, according to Giving USA’s aggregated data. Our own experiences also indicate that things got even worse in 2023 (new data from Giving USA is expected this June). However, with inflationary pressures decreasing on individual donors, we expect the “mass market” to rebound this year (though likely not to 2020 or 2021 levels of giving). This is great news for organizations working hard to make a difference in communities and for middle-tier donors, like family foundations with annual giving budgets between $10-50 million, who were often asked to help fill the fundraising gap in the past two lean years. With the situation improving, these donors should be able to modestly ramp up grantmaking in 2024.
The “globalization” of strategic philanthropy is undeniable. Put bluntly, “Professional Philanthropy” has typically been (to its detriment) US- and Europe-centric. Foundations in these geographies not only had some of the largest asset bases and annual grant-making budgets, but they also set the standards for what was considered “the right way to do philanthropy.” This is changing. Growing philanthropic efforts in places like Asia, the Gulf, and South America are making traditional donors in the US and Europe rethink their approach. They’re facing competition from influencers with different expectations and attitudes, particularly regarding the necessity of extensive staff and complex strategies for managing grant-making and other social impact investments. Like all donors, these newer change-makers don’t always get it right, but their fresh perspective is challenging previously held assumptions that haven’t always served philanthropy well. We welcome more donor diversity!
The contours of the true “post-pandemic” changes in philanthropy are coming into focus. The pandemic reshaped many aspects of life, including philanthropy. While some things will remain forever changed, others will return to how they were before. In philanthropy, there’s a noticeable increase in flexible funding and trust-based giving (however one defines that in a given context), along with a stronger commitment (in many, but not all cases) to diversity, equity, and addressing climate change issues. Funding for public health and supporting children who fell behind during school closures, however, has become less of a priority. If we ignore the latter, we risk condemning a generation of children to stunted learning outcomes.
We can’t predict the future with certainty, but we’ll keep you updated as the year unfolds.
Learn more about Geneva Global’s work and share your thoughts in the comments!
