Goals-based planning
1 minute read
If you’re a grant maker, you’re probably hoping to make both a short-term and a lasting impact.
No single strategy can ensure that you’ll leave your mark with charitable giving. Impact can encompass the issue area you choose, the organizations you select, how you give and with whom you partner.
Today, we’re seeing clients pursue several strategies to achieve these goals: joining with other donors, understanding the short- and long-term aspects of the issues they care about, and deepening their knowledge of the organizations they support.
Here’s how donors like you are turning to interesting approaches, in education, climate change and economic mobility.
Across the country, we’re seeing many philanthropists partnering with likeminded individuals to scale their effectiveness.
Donor collaboratives are growing in popularity because they allow philanthropists to be more strategic, a recent study found.1While aligning with partners takes work, we’ve seen evidence that affinity groups pooling their funds to make larger gifts can have significant impact.2
We’re also seeing another side of collaboration: between clients and the nonprofits they fund. Meaningful discussions with development and leadership teams are helping philanthropists discover new ways to support these organizations. Sometimes this means adding intentional and frequent conversations to their relationships. Sometimes partnerships produce unexpected learning—for example, an organization may derive an even greater benefit from your human, intellectual or social capital than your financial support. If you don’t ask, you’ll never know.
One question we hear frequently from clients involved in philanthropy is, “Can I have both short- and long-term impact in an issue area?” The answer is yes, and climate change offers one of many examples.
Climate change adaptation (minimizing harm to communities and nature in the future) and mitigation (tackling the causes of greenhouse gas emissions now) are two vital, connected areas that need support. As climate-related philanthropy has surged in recent years, mitigation efforts focused on the present have received about half of all donations.3And that short-term work also affects the long term.
If you’re like many people, you may thank your education for much of your success. The power of education—especially to create economic mobility—makes it a perennial top-two giving area for philanthropists.
Across the country, we are witnessing more support being given to educational institutions with track records of creating economic mobility. With that goal in mind, donor funding is growing for historically Black colleges and universities (HBCUs).
HBCUs make up just 3% of U.S. colleges and universities, but have an outsize impact, for example, graduating in recent decades 80% of Black judges, 70% of Black doctors and dentists, and 50% of all Black teachers.4Yet HBCUs receive far fewer donations than the Ivy League. The Ivy League universities received a combined $5.5 billion in philanthropic dollars from 2015 to 2019; HBCUs just 5% of that: $303 million.
After two decades of declining donations to HBCUs, charitable support has risen sharply since 2020.5This includes the JPMorganChase Foundation’s five-year, $30 million commitment to HBCUs, expanding on the firm’s Advancing Black Pathways initiative.
If giving back is essential to you, our representatives can help you in articulating your goals and leaving your mark, on short-term needs and through long-term systemic change. Euromoney named J.P. Morgan Private Bank the 2024 World’s Best for Philanthropic Advisory.
1“Collaboratives deploy about $2 billion to $3 billion. Alison Powell, Wendy Castillo and Simon Morfit, “The Philanthropic Collaborative Landscape: Collaborating to accelerate social impact,” Bridgespan Group, September 2023.
2“Of funders surveyed, 92% said the benefits of their collaboratives exceeded the costs of participating. Allison Powell, Susan Wolf Ditkoff and Fay Twersky, “How Philanthropic Collaborations Succeed, and Why They Fail,” Stanford Social Innovation Review, July 10, 2019.
3“The ClimateWorks Foundation, 2021.
4“Fact Sheet,” White House Initiative on Historically Black Colleges and Universities, U.S. Department of Education, September 29, 2023, quoting a study by the Annenberg Institute, Brown University, that used data on 1.2 million Black SAT takers who turned 30 between 2014 and 2020.
5Candid, “Philanthropy and HBCUs report reveals legacy of chronic underfunding to historically Black colleges and universities,” May 2023.
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