In an era marked by rapid technological advancements and social change, the landscape of philanthropy is undergoing a significant transformation. Modern philanthropists are not only driven by a desire to give back but are also leveraging innovative approaches from the corporate world to maximize their impact.
This new wave of philanthropists is characterized by a commitment to creating lasting change, leaving a legacy that extends beyond their lifetimes. The KPMG guide, "Disruptive Philanthropists," highlights how these modern philanthropists are shaping the future.
Let’s discuss the key insights from the guide and explore how measuring and sharing impact is crucial for driving long-term change.
A New Wave of Modern Philanthropists
Today's philanthropists are taking lessons from the corporate world to add rigor and discipline to their philanthropic activities. They are not content with merely writing checks; they seek to be strategic in their giving, aiming for demonstrable impact. According to KPMG's research, there is a strong desire among the wealthy to create impact and leave lasting legacies in their communities and beyond. This trend is fueled by a significant wealth transfer to a younger generation that prioritizes social-good organizations aligned with their goals.
Modern philanthropists are adopting innovative approaches to philanthropy, focusing on creating lasting impact and being good stewards of their investors' donations. This approach is driven by a recognition that with wealth comes responsibility.
Strategy and Structure: The Importance of Measuring Impact
A strategic framework is essential for guiding philanthropic activities, providing a basis for measuring impact, and enabling meaningful collaboration. One of the most significant shifts among today's philanthropists is the emphasis on measuring and demonstrating impact. According to the 2021 KPMG Global Philanthropic Practices Survey, 56% of philanthropists believe that measuring impact is one of the greatest challenges to being effective.
Effective impact measurement requires a structured approach, including establishing key performance indicators (KPIs) and collecting data to track progress. This process helps philanthropists make informed decisions, adapt strategies, and ultimately achieve their goals. The power of collaboration is also highlighted, with many philanthropists working together to address complex social issues.
Social Impact Measurement: The Ultimate How-to Guide
Impact measurement is critical for any social-good organization. It helps demonstrate what they do, how well they do it, and their long-term impact on the community. SureImpact provides a comprehensive guide to social impact assessment, which is invaluable for nonprofits, government entities, collaboratives, and foundations.
Defining Social Impact Assessment
Social impact assessment evaluates the social consequences of policies, plans, programs, and projects on individuals, families, and communities. It includes research, planning, assessment, management, monitoring, and reporting at all stages of a project's life cycle. The ultimate goal is to drive positive, sustainable, and equitable change.
Categories and Frameworks of Social Impact Assessment
Social impact assessment can cover a wide range of impacts, including aesthetic, cultural, health, economic, workforce, gender, environmental, psychological, leisure, natural resource, community service, political, and demographic impacts. Frameworks such as the United Nations' Sustainable Development Goals (SDGs), Theory of Change, Logic Model, and others provide structured approaches to assessment.
Conducting Social Impact Assessment: 12 Steps
Here’s a simple 12-step process for conducting social impact assessment:
Activity and Project Concept: Define the purpose and need of the project.
Context: Understand the legal, social, political, and economic context.
Initial Screen: Identify positive and adverse social impacts.
Identify Stakeholders: Map all stakeholders and their impacts.
Plan: Develop a detailed engagement and reporting plan.
Engagement: Conduct meetings, interviews, and surveys with stakeholders.
Assess the Baseline Condition: Collect initial qualitative and quantitative data.
Predict, Analyze, and Assess Impacts: Evaluate direct, indirect, and cumulative impacts.
Avoid: Redesign projects to mitigate significant adverse impacts.
Mitigate: Develop plans to monitor and mitigate negative impacts.
Enhance Benefits and Opportunities: Analyze data to support additional benefits.
Ongoing Engagement and Monitoring: Regularly work with stakeholders to adapt activities as needed.
Scalability: A True Legacy
For philanthropists, scalability is about achieving transformational systems change at a national, continental, or global level. SureImpact can play a crucial role in this by providing tools that help organizations measure their impact effectively and share their results with stakeholders. This approach ensures that philanthropic activities are not only impactful but also sustainable and scalable.
Conclusion
The future of philanthropy is dynamic, disruptive, and driven by a commitment to measurable impact. Foundations and philanthropists must embrace strategic frameworks, collaborate effectively, and leverage tools like SureImpact to enhance their impact measurement and reporting capabilities. By doing so, they can drive long-term change and leave a lasting legacy.
In conclusion, measuring and sharing impact is essential for modern philanthropists who aim to create meaningful and lasting change. SureImpact is the only impact management solution designed for funders and their grantees. SureImpact offers a comprehensive solution to help organizations assess their impact, make informed decisions, and communicate their results to stakeholders. As philanthropy continues to evolve, embracing these practices will be crucial for driving long-term change and achieving transformational impact.
To learn more about leveraging technology to track, measure, and communicate your impact, download our Ultimate Guide to Impact Measurement.
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