2015 was a big year for philanthropy. In fact, the U.S. saw the highest record of donations and plenty of innovations in philanthropic strategies. But 2016 could be even bigger. This year, expect to see the following trends in philanthropy.
More impact investing
Nowadays, impact investing is becoming a trendy topic in the field of philanthropy. Unlike traditional ways of investing philanthropic capital, impact investing is all about investing capital not only for growth, but also for social impact. By making social impact as important as economic growth, impact investing will continue to flourish as a great vehicle for achieving a higher social impact.
The surge of philanthropic strategists and advisors has allowed philanthropists to be much more strategic about where and how they donate. As people become more informed about how they can create the most good out of there donation, strategic insights will play a huge role in making philanthropic decisions.
Philanthropy is diversifying
Thanks to crowdfunding and social media campaigns, philanthropy has opened up to smaller donors who didn’t feel they had enough to offer before. Events like the ALS Ice Bucket Challenge and Giving Tuesday have really transformed the philanthropic landscape and by doing so have raised billions of dollars to great nonprofit organizations with average individual donations of less than $100.
Women’s impact will increase
Women will continue to lead and innovate when it comes to philanthropy. Considering that women now control more than half of the private wealth in the U.S, they are expected to comprise 60% of U.S. billionaires by the year 2025.
Increased use of PRIs
PRIs, also known as program-related investments, allow foundations to lend or invest capital in for-profit and non-profit organizations while still receiving a good financial return. Another great aspect about PRIs is that they improve donor impact by growing and recycling a portion of the philanthropic assets for future use.
The design of innovative structures
Every day more and more entrepreneurs continue to find newer and better ways to genuinely deploy capital for charitable causes without receiving a tax benefit. They aim to truly make a difference in society.
It’s great to see more people than ever being included in philanthropic efforts. As we see the number of people who are able to contribute continue to expand, we will also see the impact of those investments grow as well.