Philanthropy has changed much since 2010, and the charitable sector will change more in the 2020s. Below are aspects likely to change the future of philanthropy.
Big Philanthropy will Grow Bigger
New wealth has been surging to philanthropy in recent years. Philanthropists planning to give much of their wealth hold a big chunk, especially older wealthy billionaires with more urgency to dispose of assets.
Small Philanthropy Will Become Smaller
Ordinary Americans are giving less, and the trend will last through the 2020s. Chronic financial insecurity, changes in federal tax law, and increasing secularization are the leading causes of lesser giving.
Government Philanthropy Will Decline
The government’s monetary focus is a huge debt, public distrust, and increasing political attacks. The forecast for philanthropic activities is grim as pension crowd out spending on other priorities across state, federal, and local budgets. Resources for new programs and initiatives will wane, resulting in the privatization of problem-solving.
Public-Private Partnerships Will Increase
The weakened public institution will be more ready to work together with private funders. However, the involvement of businesses will be higher as consumers and employers pressure them more to demonstrate social value.
The Importance of Intermediaries and PSOS Will Increase
Philanthropic sector infrastructure underwent much expansion in 2010s, and the trend continues in the 2020s. The growth will make entities that serve as intermediaries between the busy wealthy donors and nonprofits to grow immensely in shaping the future of philanthropy.
Growth of High-impact Philanthropy
More millennials are occupying prominent roles in philanthropy. A sign of revolution in individual giving is the rise of GiveWell. It has existed for about ten years but now directs gifts worth $500 to high-impact charities. Corporate philanthropy will be more strategic and focused.
Donors Will Save the Life of Millions across the Globe
Efforts by philanthropists and foundations will keep millions of people alive by 2030. The reason is that more philanthropists are emerging from Europe, China, Africa, Middle East, and India. Giving will not just be the business of renowned philanthropists like Bill Gates or Michael Bloomberg.
Domestic Challenges Will Still be Hard to Solve
Home challenges like decarbonization, education, and poverty will still be hard for philanthropy to solve. AFaunmders are cautious about inequality, climate change, and education reforms, especially after the flop of K-12 reforms despite backing by a billionaire.