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On Giving Wisely
Nov. 24, 2007
by Steve Beck
With Thanksgiving now in the rear view mirror, it’s time to accelerate into the holiday season. ‘Tis the season for giving – and for growing media coverage of philanthropy.
Some of the coverage is designed to spur competition among donors. We now have several annual rankings of philanthropists according to how much money they give. But the rankings all inspire the same questions: Is philanthropy defined in terms of dollars? Are the “top” philanthropists really the ones who give away the most money?
I don’t think so. Ranking philanthropists based on dollars given is akin to ranking the world’s great investors by the amount of stock they bought rather than their returns; it celebrates the input without regard for the impact. We need deeper reflection on what philanthropy is really about. Rankings can spur healthy competition. But let’s spur each other on to what really matters.
Philanthropy is the practical expression of love toward humanity. This foundational definition makes clear the two central challenges faced by all donors: the challenge to be generous, and the challenge to good stewardship; that is, giving that truly promotes the common good. Unfortunately, contemporary rankings and coverage of philanthropy shed little light on either of these.
These days the limited discussion of effectiveness tends to focus only on the effectiveness of non-profit organizations, not on givers. Of course, philanthropic effectiveness is notoriously hard to measure, but that doesn’t mean it shouldn’t be attempted. It just means that attempts at measuring giving effectiveness require humility, and the understanding there will be some degree of subjectivity, since equally well-intentioned people can disagree on the right metrics.
In an inaugural effort to shift focus towards wise philanthropy, Geneva Global and Barron’s Magazine set out to promote a thoughtful consideration of effectiveness in giving. We have not attempted a ranking at this point. Instead, we’ve highlighted ten philanthropists who focus on getting the most done with their donations. These social investors are changing the face of higher education, bringing humanitarian aid more quickly to victims of natural disasters, substantively alleviating the burdens of urban poverty – and they are doing it with practices than can be applied by any donor, not just those who are giving billions.
There are nuances, but their practices consist of a few simple rules: 1) Start with a goal that engages your passions and leverages your own experience; 2) Create a plan to achieve that goal; 3) Thoughtfully measure progress, even if the metrics are imperfect; 4) Learn from success and failure, and 5) Be willing to change what you’re doing based on that learning.
Effective philanthropy genuinely promotes the common good, changes lives, builds communities and solves problems. Donations and good intentions alone do not. We hope you’ll be inspired, as we were, by these ten wise philanthropists. They aren’t just giving money to charity. They have married head and heart to invest in change for good.
To read more about the Barron’s and Geneva Global collaboration on wise philanthropy and profiles of the ten effective philanthropists visit Barron’s Magazine.