How not-for-profits can shape future philanthropy

The contemporary philanthropy ecosystem in Australia today has moved on from the traditional perception that philanthropic giving is in the hands of a few wealthy individuals. In the context of a civil society, this ecosystem is now becoming formally visible, with resources, connections and relationships at work to contribute to the wellbeing of society. With increased public recognition comes the challenge to meet its full potential and to recognise how the fingerprints of many people currently influence giving.

How philanthropy operates as an ecosystem

Philanthropic giving was once in the hands of the few, arranged behind closed doors, and largely unreported and unaccountable other than for legal compliance and tax purposes. The philanthropist was a rare individual, often distant and mysterious. Today, the visibility and accountability of philanthropic giving is up for public scrutiny due to rapid expansion in numbers and dollars, advances in technology and communication, increased regulation and compliance, and a maturing not-for-profit sector which is looking for rigour and confidence for all involved.

The focus on people with high net worth led to long-held assumptions that philanthropy is only for the wealthy. But today, philanthropic giving has become democratised. People with moderate amounts of money are also stepping up to be part of contemporary philanthropy, in whatever way and at whatever scale their modest incomes allow.

As this groundswell of deliberate generosity advances, so too does the enthusiasm to see money as a currency for connection and agency, a means for personal expression and power, and a way to influence and shape the world in which we want to live. This welcome progress has come with even more complex and urgent questions and challenges, spurred on by a search for best approaches to organised giving and a commitment to optimal impact.

As the work of philanthropy becomes more publicly visible, the complexity of dynamic networks and shared agendas for many funders can aptly be described as an ecosystem.

Characteristics which qualify this description are where funders are seeking coherence in their approach, exploring possibilities for collaboration, sharing learning and agreeing on standards and codes of practice. Support for shared platforms and specialist networks such as Philanthropy Australia are amplifying collective engagement and collaboration around often complex social challenges. This is how contemporary philanthropy is legitimately evolving as an ecosystem.

People are taking their place in the philanthropic ecosystem, regardless of their role or focus for granting. The context is relevant for new and old money, and small- or large-scale giving, and porous borders encourage new people to be part of structured giving. Ambitions for impact are shared through interconnections and alignment. Wherever funders operate in this ecosystem, the common challenge is to recognise the place they occupy and the shared influence that can be brought to bear in the interests of wider society.

As philanthropic practice within the ecosystem evolves, both nationally and internationally, attention is being paid not only to where philanthropic money comes from and where it lands, but also how people manage, coordinate and influence the work collectively, interrelating and interacting with each other as accepted good practice. It is also recognised that for a healthy ecosystem to flourish, the emphasis needs to be on trust, shared values and common goals to effectively leverage resources and amplify impact. Self-organising with emphasis on connection and reciprocity rather than competition and extraction are hallmarks of a healthy ecosystem.

Who has a role in the philanthropy ecosystem?

Everyone comes to the work of philanthropic giving from different places and for different reasons, and often with startlingly different experience and capacity. Some are motivated by tax burden relief or an eagerness to share personal wealth. Others follow in the footsteps of previous generations with inherited wealth, looking for a way to use their skills for a meaningful purpose, feeding a hunger to do good, or even allaying a fear of not having done enough. For most, there is an innate sense of the value of giving, whether it’s their own money or managing other people’s wealth. For many, promoting a culture of generosity in an increasingly consumer-driven world is recognised as more important than ever. As opportunities to take on formal roles rapidly expand in philanthropic work, people are bringing skills from business, not-for-profits, government and academies, shifting career trajectory to join a growing and changing field with a perceived heightened socio-economic impact.