Religious readers of this blog (my parents) know that more than once I’ve spruiked the value of Lucy Bernholz’s Philanthropy 2173 blog. It’s a great read for those interested in emerging trends in philanthropy and social investment. Lucy, a self confessed philanthropy-wonk and visiting scholar at the Stanford University Center on Philanthropy and Civil Society, also publishes a much anticipated annual industry forecast. I got my hands on a copy of the Philanthropy and Social Investing 2012 Blueprint just before Christmas and it was a great way to both end 2011 and prepare for 2012.
The 2012 Blueprint is ultimately aimed at assisting “donors, investors and enterprise leaders address three big shifts in 2012”.
- Finding your way in the new social economy in which philanthropy and impact investing now operate
- Considering the implications of the Citizens United decision on philanthropy and social investing
- Making sense of data as a public good
On initial reading you’d be forgiven for thinking points 1 and 3 are the only ones that could possibly relate to an Australian context, but interestingly the potential implications of the Citizens United Supreme Court decision in the Unites States provides a couple of ‘ah-ha’ moments around the potential future of Australian philanthropic investments in light of our own High Court’s Aid/WATCH ruling (more on that later). I’m going to explore all three big shifts on this blog a little further over the next week. Today I’ll be taking a peek at the first of the identified big shifts; Finding your way in the new social economy.
One of the big statements of the 2012 Blueprint concerns the need to shift our traditional perspectives on non-profit/donor interactions to a much broader frame that encompasses the multiplicity of ways private resources are today being used for public good. This is a shift to the social economy frame and acknowledges a greater diversity of players, stakeholders and influencers in the resourcing of the ‘public good’. Lucy lists three main ‘galaxies’ as being at play within the social economy: impact investing, political giving, and charitable giving. Here in Australia are we too focused on exploring charitable giving without consideration to the role of those two other galaxies?
It’s fair to say impact investing in Australia is lagging well behind the United States and UK, but 2011 was a big year for the sector (think SEDIF, Hepburn Wind & the NSW Government Social Impact Bonds* announcement). While political giving may not be natural space of play within our system, the Australian High Court’s Aid/WATCH ruling has the potential to change traditional interactions between political parties, donors and non-profits (if donors and non-profits can cope with the cultural change required in this sphere of influence).
In short the interactions between these galaxies within the Australian context are happening at a growing rate and the influence each is expelling on the other needs greater examination. The 2012 Blueprint helps to explore this beautifully:
Donors today are choosing between and among philanthropy, impact investing and political giving to pursue their goals…the line between the galaxies are clear, other times they are blurry.
As an example, a donor today may choose to pursue their interests in protecting the environment by funding direct landscape restoration & maintenance. Alternatively they may decide to invest in a community wind farm project or support direct political advocacy with the aim of removing cattle grazing from a national park.
Lucy’s exploration of the social economy and the different galaxy of players has me thinking more and more about who is in the room when conversations about funding and tackling social and environmental problems are actually being had. Are we (donors & doers) actively excluding each other and if so, why? Lucy once again sums it up best:
It is not enough to focus only on philanthropy and nonprofits; rather we need to understand the changing dynamics of the whole economy over time…..The key to our future is accepting that our old assumptions about “which sector does what” may no longer hold.
It’s fair to say that despite opening with a statement on American political giving in the 2012 presidential campaign year, the Blueprint is packed with an enormous amount of content that will be of interest to Australian social investors. For those interested in where the shifts are happening, what the buzzwords of 2012 are likely to be, as well as a prediction on where the social economy is heading, then a copy of the 2012 Blueprint is a must.
You can get your hands on the 2012 Blueprint the following ways:
- Hard copies from Lulu
- PDFs at Scribd
- Kindle version from Amazon
- eBook from Smashwords. Also available for Amazon Kindle, B & N Nook and others.
*Interestingly Social Impact Bond is on the 2012 Blueprint Buzzword Watch List
You can follow the musings of Caitriona on Twitter via @cat_fay or the blog @3eggphil