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“Fill In The Blank” Philanthropy

Yesterday I wrote about “Catalytic” Philanthropy. And of course this blog is called “Tactical” Philanthropy. So it was with amusement that I read Phil Buchanan and Ellie Buteau’s op-ed in the Chronicle of Philanthropy.

The authors, the president and head of research at the Center for Effective Philanthropy (of which I think the world of), write:

“…it seems that purveyors of new philanthropic formulas for making a difference are everywhere. Offering anecdotes and snazzy adjectives modifying the word “philanthropy,” they extrapolate from a success story or two, promising that their approach—fill-in-the-blank philanthropy—will allow foundations and philanthropists to finally show progress in solving our toughest societal challenges.”

Ouch! Are they talking about me? Or Mark Kramer? Or Grassroots Philanthropy, or Strategic Philanthropy, or Venture Philanthropy, or Inspired Philanthropy or Philanthrocapitalism or Microphilanthropy, or… Wow. There really are a lot of examples of “Fill In The Blank” Philanthropy.

Buchanan and Buteau go on to write:

“Many of those writing about philanthropy are insightful—and, occasionally, what is written goes beyond a few anecdotes and is rooted in some actual research. Some are making a real contribution by promoting tools and approaches that can be powerfully positive. But lost, all too often, is what may seem an obvious point: Whether those specific approaches make any sense at all for a particular foundation depends entirely on the goals and context of the foundation in question.

…We would be the first to agree that it’s great to see new, creative models of approaching philanthropic challenges. In the right context, they can be important elements of strategies that lead to big achievements. But which ones make sense for a particular grant maker?

It depends. Because the right set of activities—the right strategy—depends on the foundation’s goals, and the context in which it is operating.

“It depends” is admittedly not a great slogan if you are trying to sell consulting services or publish an article. But it is wise counsel, we believe, to those making decisions about how to allocate precious charitable resources.”

Hmm, have Buchanan and Buteau just proposed a new “Fill In The Blank” Philanthropy? Is “It Depends” Philanthropy the next hot fad?

In all seriousness, the authors are making an extremely important point. It does depend. There is almost no advice, in philanthropy or anywhere else, that is applicable to everyone all the time.

In criticizing those of us who argue in favor of various approaches to philanthropy, Buchanan and Buteau are engaging in a simple debating trick. They are suggesting that by arguing in favor of a certain approach, someone is insisting that their approach is applicable to everyone, all of the time.

I don’t believe that Mark Kramer has ever suggested that everyone, everywhere should practice Catalytic Philanthropy. I hope that I’ve made clear that while I think more people should approach philanthropy with a “tactical” social investing approach, that does not preclude the need for the practice of “strategic” problem solving approaches.

Buchanan and Buteau write:

“The advice is everywhere foundation leaders turn: Experts are urging grant makers to “build the capacity” of nonprofit groups; invest in social media; finance research; find ways to influence public policy; and offer loans and other so-called program-related investments.”

Yet I can’t recall ever hearing someone arguing that all donors should “invest in social media”, “offer program-related investments,” or any other particular approach.

Frankly, I’d like to hear more people arguing in favor of more “Fill In the Blank” approaches to philanthropy! The discussions are healthy. The debates help everyone refine their own thinking. But let’s all maintain a healthy skepticism of anyone who proposes to know what is best for everyone else.

If anyone ever releases a book titled “Perfect Philanthropy: How you can be a perfect donor in 15 minutes a month by following these three simple rules!” then I’ll join Buchanan and Buteau in lamenting the oversimplification of philanthropy. But until then, I’d like the decibel level of the conversation to increase. Saying “it depends” is true, but it is also a way to end a conversation that everyone can benefit from having.

Shock & Awe Philanthropy

Last year, Mark Kramer of FSG Social Impact Advisors defined the term “catalytic philanthropy” in a Stanford Social Innovation Review article. Mark wrote:

“For most donors, philanthropy is about deciding which nonprofits to support and how much money to give them. These donors effectively delegate to nonprofits all responsibility for devising and implementing solutions to social problems. Despite the sincere dedication and best efforts of those who work in the nonprofit sector, there is little reason to assume that they have the ability to solve society’s large-scale problems.”

Mark then went on to describe four practices of what he termed “catalytic philanthropy”:

  • Take Responsibility for Achieving Results
  • Mobilize a Campaign for Change
  • Use All Available Tools
  • Create Actionable Knowledge

In other words, Mark argued that donors or funders should take responsibility for being agents of change themselves rather than focusing on supporting nonprofits who are agents of change.

To a large extent, Catalytic Philanthropy is in direct opposition with Tactical Philanthropy. Catalytic Philanthropy is in many ways a special category of Strategic Philanthropy. In a Chronicle of Philanthropy column in which I described Tactical Philanthropy I wrote:

“While strategic philanthropists seek to solve social problems, tactical philanthropists are social investors.

Investors, in both the for-profit and the nonprofit contexts, provide capital to organizations that solve problems. Good investors take great interest in the solutions deployed by the organizations they finance, but they themselves are not problem solvers.”

Yet I have great interest in Mark’s concept and think that Catalytic Philanthropy is an important approach for large donors and funders to consider. In some ways, Catalytic Philanthropy is an attempt to leverage the “soft power” potential of philanthropy, a concept I wrote about yesterday.

The core case study that Mark uses is Tom Siebel’s work on the Montana Meth project. When I wrote last year about Investing in Nonprofits, I used Siebel’s project as a counter example of effective ways that donors could approach philanthropy.

But while I agree that Catalytic Philanthropy, in which funders are positioned as the core agent of change, can be an effective approach, I disagree with Mark’s premise that most philanthropy does not already attempt to act this way.

Mark writes:

“For most donors, philanthropy is about deciding which nonprofits to support and how much money to give them.”

But this is clearly not how most large foundations work. Most foundations talk about their own programs and view grantees simply as the way in which they express the foundation designed program. Only a small handful of large foundations truly see their role as an investor in nonprofits and talk not about the foundation designed program but about their portfolio of grantees as their agent of change.

Even individual donors, who might say that “philanthropy is about deciding which nonprofits to support and how much money to give them,” in practice generally don’t invest in nonprofits, but instead restrict their donations to certain programs and in effect attempt to use the nonprofit to execute the ideas that the donor themselves believe will do the most good.

When I first read Mark’s article, I was reminded of the Powell Doctrine. When Colin Powell was chairman of the joint chiefs of staff for the US military during the first Gulf War, he advanced the idea that war should be avoided at all costs. But when it became necessary, overwhelming force needed to be deployed.

To me, this is how I view Catalytic Philanthropy. Donors should avoid the temptation to design social impact programs themselves in the majority of situations. But when a donor decides that they have the answer to a problem, they must bring overwhelming force to the situation.

Mark himself told me that when he was writing his article, he considered using the term “shock and awe” to describe Catalytic Philanthropy.

When Tom Siebel decided no nonprofits were effectively combating the meth problem in Montana, he didn’t just launch a media campaign to educate non-users about the devastation caused by the drug. He saturated the media market with extremely hard hitting ads designed by advertising firms who usually work with Nike and other major corporate advertisers. And he supplemented the ad campaign with support for a variety of other elements of the system.

Siebel didn’t just design a strategy. He brought overwhelming force and execute a “shock and awe” campaign that resulted in a massive decline in methamphetamine related social problems.

So here’s the lesson. If you are a donor or a foundation, your best bet in my opinion is to focus your energy on building portfolios of outstanding nonprofit organizations. Invest in these organizations, help them grow and provide them the resources they need to achieve impact.

But remember that there are a lot more tools available in philanthropy. These tools can be powerful. But it is not enough to simply sit in an office and design a strategy that you think might work. Don’t forget that nonprofits on the ground have been hard at work on the very problems you think you can solve. But you have a unique role as a funder. There may be opportunities for you to become an agent of change yourself.

But if you take this route, bring your A-Game. Bring overwhelming force. Be prepared to execute a campaign of shock and awe that has a shot of truly acting as a catalyst that sets in motion a new chain of events.

Philanthropy Daily Digest

Philanthropy Daily Digest

Philanthropy Daily Digest

Philanthropy Daily Digest

Philanthropy Daily Digest

Philanthropy Daily Digest

Tactical Philanthropy Podcast: Mark Kramer

Today’s post cast is with Mark Kramer of FSG Social Advisors. Mark and I talk about mission aligned investing, information sharing in philanthropy and whether achieving social impact means limiting financial returns. My favorite line from the interview, “I’ve actually talked to a couple foundation CEOs who, when I’ve said what was your greatest achievement, said putting a nonprofit out of business that just wasn’t doing a good job.”




Sean Stannard-Stockton: Hello, and welcome to the Tactical Philanthropy podcast. I’m Sean Stannard-Stockton, author of the Tactical Philanthropy blog, and principal and director of Tactical Philanthropy at Ensemble Capital. My guest today is Mark Kramer. Mark is the founder of FSG Social Impact Advisors. FSG is a nonprofit organization that seeks to advance the practice of philanthropy via consulting with foundations, corporations, and nonprofits to increase their effectiveness and their impact. They publish research on philanthropic value creation and evaluation and create tools and best practices within philanthropy. Mark, I really appreciate you joining us today.


Mark Kramer: Thank you, Sean. I’m delighted to be here.

Sean Stannard-Stockton: Mark, FSG recently published a report called “Compounding Impact”, about mission-related investing. Would you start off just by defining what MRI means and maybe talk a little bit about the difference between SRI, PRI, and MRI?

Mark Kramer: Sure, and as that alphabet soup suggests, terminology is actually a huge problem in this field. I would not say that there are consistent definitions for any of those terms out there. But in the broadest sense, what we’ve seen is foundations increasingly taking into account their mission and the social impact of their investments when they think about investing their endowment funds. And there really are a couple different ways to think about the social dimension of your investments. One is simply to screen your portfolio. In other words, to avoid stocks and companies that you think do bad things, like tobacco companies. Or to have a positive screen, where you put more of your assets in companies that are doing what you think of as good things, like, perhaps, alternative energy, green energy.

A second way to have impact with your investments is through your vote of the proxy that you have as a shareholder. And there’s some very interesting work that Rockefeller Philanthropy Advisors, and some other organizations, have done around the role that foundations can play by influencing corporate behavior through their proxy votes. The third area, and the area that…

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