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Related Experiment Videos

Philanthropy's new agenda: creating value.

M E Porter, M R Kramer

    Harvard Business Review
    |February 8, 2000
    PubMed
    Summary
    This summary is machine-generated.

    Charitable foundations need radical change to maximize social impact. Strategic philanthropy, focusing on grantee relationships and results, is essential for foundations to fulfill their societal obligations effectively.

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    Area of Science:

    • Philanthropy and Non-profit Management
    • Strategic Management
    • Public Policy

    Background:

    • The number of charitable foundations in the U.S. has doubled in 20 years, with assets increasing over 1,100%.
    • Foundations receive significant tax preferences, representing a substantial national investment in philanthropy.
    • Current foundation practices often fall short of their potential social impact.

    Purpose of the Study:

    • To analyze the current state of foundation philanthropy and advocate for necessary changes.
    • To present a strategic framework for foundations to enhance value creation.
    • To challenge the traditional model of philanthropy and promote a professionalized approach.

    Main Methods:

    • Analysis of current foundation practices and their alignment with strategic principles.

    Related Experiment Videos

  • Application of Porter's work on competition and strategy to the field of philanthropy.
  • Identification of common problems in foundation funding and grantee relationships.

    • Main Results:

    • Many foundations scatter funding and overlook the value of sustained grantee partnerships.
    • Foundations often fail to adequately measure or focus on the ultimate results of their funded work.
    • Current practices frequently conflict with strategic objectives, hindering optimal social impact.

    Conclusions:

    • Foundations must evolve from passive giving to strategic, results-oriented endeavors.
    • A strategic framework is proposed to guide foundations in maximizing their societal contribution.
    • Philanthropy needs to transition into a professional field with a focus on measurable impact.