April 19, 2024
Close this search box.
Close this search box.
April 19, 2024
Close this search box.

Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Four Giving Trends You May Want to Adopt

Donors both large and small are carving out time from their busy schedules to learn how to give more effectively. Many relish the opportunity to meet with like-minded funders and exchange ideas, with the goal of enrich­ing the experience of giving and maximizing the impact of their dollars. They are also get­ting involved in giving at an earlier age. (Think of Mark Zuckerberg and Priscilla Chan’s 2013 donation of nearly $1 billion to a donor-ad­vised fund in Silicon Valley, earning the then 20-somethings the title “Most Generous Amer­icans” by the Chronicle of Philanthropy.)

Deeper donor engagement is but one of four philanthropic trends highlighted last week by Melissa Berman, CEO of Rockefel­ler Philanthropy Advisors, at a recent break­fast on the topic of “Empowering Women and Girls: Achieving Impact Through Models of So­cial Change.” The event was organized by Jew­ish Communal Fund, the largest Jewish donor-advised fund in the country.

A second trend she identified is that funders are seeking out solutions-based ap­proaches.

“For many years, people funded the prob­lem and not the solution,” Berman said. Many funders would allocate their dollars based on how terrible the problem was—throw­ing money at the biggest issues even if there wasn’t a true fix available. Now, savvy donors are asking questions like: “What is the solution to the problem?” and requesting that nonprof­it organizations show them evidence that their approach actually works.

Third, donors are increasingly interested in creating a legacy with their charitable giving. “They want to transmit their values to the next generation and create a family legacy,” Berman said.

Perhaps the most exciting trend is that there are many new ways to fund. “There is great interest in social enterprise and impact investing [investing capital in organizations with a social mission],” Berman noted. In addi­tion, “Lots of folks are using media as a way of moving an issue forward and getting people connected to an issue.”

One example of a social-enterprise mod­el is Digital Divide Data, a nonprofit that pio­neered the “Impact Sourcing model” in which it provides employment and higher education opportunities to young women and men in emerging economies in Cambodia, Laos, and Kenya. The more than 1,000 employees have the opportunity to strengthen their skills and lift themselves and their families out of pov­erty. The organization brings in $6 million an­nually in earned revenue from the data entry and other outsourced services they provide to businesses, covering operating costs and help­ing the organization remain sustainable. Do­nations to DDD fund educational scholarships and training opportunities for employees.

“We take unskilled laborers and provide them with access to college and professional skills,” said Jeremy Hockenstein, the co-founder and CEO of DDD, who shared examples of dif­ferent models of funding women and girls at the Jewish Communal Fund breakfast.

DDD measures its effectiveness not simply by highlighting the number of current and for­mer employees but also by tracking the sala­ries of past employees who have since gradu­ated college and entered the workforce. “We have seen an eight-fold increase in lifetime earnings,” he said.


How can these philanthropic trends relate to your own personal charitable giving?

“It’s worthwhile to ask yourself, ‘What are my core motivations and values,’” advises Ber­man. “Don’t approach charitable giving solely based on analytics. If you just use your head— and not your heart and soul—you will often end up extremely frustrated.”

It is often helpful to ask yourself the follow­ing questions:

What change do I want to see in the world?

How do I think that change will happen?

Many people, for example, want to help lift people out of poverty. There are many ap­proaches to this issue, including providing ac­cess to capital, improving public health care, or sponsoring scholarships that provide ac­cess to higher education. “It’s important to think through which strategy really resonates with you,” she says. Find an issue you care about and an approach you want to take, and then search for organizations that are a good fit. It is also helpful to review your giving his­tory through the lens of the cause that is most important to you.

Hockenstein and his wife recently made a spreadsheet outlining all of their giving with­in the past year. They then classified each gift as benefiting the rich or the poor. “We realized that 70% of our giving was helping what we considered ‘the rich,’ as we look at the distribu­tion of income among the seven billion people on the planet,” he said. “This included our syn­agogue and other worthwhile causes within the Jewish community.” This exercise informed their future giving.

You can use this approach to see what percentage of your philanthropic dollars sup­port your local Jewish community or an issue area that you have identified as a priority with­in your own giving. Gaining clarity about your philanthropic focus will help you allocate funds in a way that is potentially more effective and more in line with your values.

Tamar Snyder is the Associate Director of Strategic Ini­tiatives & Communications at Jewish Communal Fund (www.jcfny.org), the larg­est Jewish donor-advised fund in the country. She can be reached [email protected].

By Tamar Snyder

Leave a Comment

Most Popular Articles