Evolving Perceptions on Philanthropy

In the classical words of John W. Gardner, philanthropy is “private initiatives for the public good”. The word philanthropy has its roots originating from ancient Greek mythology and while it may have disappeared in the Middle Ages, it was revived during the Renaissance in early 17^th century.

The meaning of philanthropy has evolved over the years, with the underlying objective being social improvement and community development. In recent times, philanthropists like Bill Gates and Warren Buffet have adopted a new approach to philanthropy; by applying business practices to social development.  Lessons learnt from businesses are now program modules, custom fit for development of small communities. By instilling organization into social development, communities are more self-sufficient, and do not have to rely entirely on philanthropic donations that would only ‘give a man, fish for a day’. 

Like global philanthropist, Georges Haligua emphasized, “Philanthropy is about providing communities with opportunities to be rich in resources and not poor in assets.” Communities should be built based on tools given to individuals. 

Whatever the term philanthropy signifies, it should be about creating sustainable solutions for social impact.

From ‘Barefoot Bankers’ to ‘Evolving Entrepreneurs’! The MicroConsignment Model (MCM)

Microfinance may have come of age; however it is serving its purpose of creating independent communities. Evolving to newer models, a new approach to encourage social entrepreneurship is the MicroConsignment Model (MCM).  Originally conceived by Greg Van Kirk, this system works on consignments, keeping the risk of investment largely on the lender; the investment here referred to as ‘sweat equity’. Potential entrepreneurs are given support in the form of training, products and services; therefore creating a platform for small entrepreneurs to materialize big business ideas. 

Global philanthropists like George Haligua have realized that shifting focus from providing loans to encouraging micro entrepreneurs is an effective method in ensuring economic, health, social and environmental benefits in the long term. The main objective here is to improve community development not only by providing grants, but also in encouraging entrepreneurship ideas of people in developing countries like Bangladesh, India, Thailand and Mongolia.

What took microfinance eighteen years to achieve, the MCM model has achieved in five years; by replacing ‘Barefoot Bankers’ with ‘Evolving Entrepreneurs’!

Managing a Foundation with a Focus on Solutions rather than Problems

People think managing a foundation is easy; it is in reality a bigger responsibility than managing a business. While the bottom-line for a business may focus on making more money, the bottom-line for a foundation is about making a real difference. 

Foundations need to consider various aspects to balance financial goals as well as social objectives. The most important one is treating benefactors as customers, by providing them with quality service. By service, it refers to acknowledging contribution, maintaining a regular connection and providing updates on activities to encourage active involvement. Another essential aspect is creating a strategic marketing plan, one that will promote your foundation’s initiatives which will not only help in creating market presence, but will also help in increasing awareness. The members of the board are also important not only as a source of fundraising, also as a source of organizational knowledge and business expertise. The functioning of any organization, ‘for profit’ or not, is unattainable without their employees and investing in qualified human resource helps in building a strong foundation.  Encouraging volunteers from different countries with specialized knowledge and expertise could be a viable option to involve highly skilled people, while maintaining financial goals. 

Many foundations today are applying business practices in the social sector and customized models are facilitating better functioning of non-profit organizations. However, it may require an entirely different approach, with a focus on solutions rather than problems and on needs rather than causes. As global philanthropist, Dr. Georges Haligua said, “Nonprofit organizations should be solution oriented rather than problem oriented. If you give to a need there will be no causes in the future!”