The impacts philanthropy can have, that are more than just financial
Philanthropy, when used correctly, has the potential to make real societal change. The reach, both social and financial, of philanthropic endeavours is such that almost any idea is achievable. This reach, when properly utilised, can help to address the challenges that face us as a society. A recent article discusses in detail the ways that philanthropy can play its part in bettering our world.
It’s no secret that our planet is in a state of climate emergency. The United Nations has outlined 17 sustainable development goals (SDGs) that act as a blueprint for recovering our climate. The goals are an urgent call to action, aimed at all nations. However, as with most things that are worth doing, achieving these goals is not going to be cheap. This is where philanthropy comes in. The funding that could be achieved through philanthropic routes is astounding, and it is sorely needed in this area – there are few causes more worthy of immediate aid than that of saving our planet from climate ruin.
More and more charitable trusts are beginning to reconsider where their money is going. They’re considering the wider impact of their portfolios, both in terms of investment and grants. Often the negative effects of investment choices – for example, a company’s carbon footprint or human rights ethics – outweigh the positives. More and more, trusts are looking to balance these outcomes, so that the good they do with the money they invest is not undone thanks to the actions of those they are investing in. What this means is that as well as having a positive financial impact, the investments also help to make our world a better place.
Donor-advised funds (DAFs) are becoming increasingly popular due, in part, to their flexibility. They’re not directly tied to a specific charitable cause, which means that the funds can be distributed as and when they are needed, to a number of causes. This means that they’re well-suited to deal with a sudden shift in funding priorities, and can address last minute needs more easily. An added bonus is that thanks to this flexibility, DAFs can help donors and trusts to achieve a balanced investment portfolio that has maximum positive impact.
The bottom line is this: we all need to think more broadly about charitable giving. Donating a given amount each month is still vital, but if this donation is given without much thought to where the money is truly going, it may not be as pure as the donor thinks. Focusing on all-round positive change, and creating a portfolio of investment with maximum societal impact, is the best thing that we can all do; SDGs and DAFs are powerful tools to help us reach this end goal.