Why This Matters

All of us involved in philanthropy today – foundations, individual donors, corporations, government, nonprofits, and community leaders – recognize that the social sector is in the midst of a radical transformation.

  • Governments at the Federal, state and local levels are changing how they fund and approach social problems – often resulting in less money for many nonprofits.
  • Government funders are trying to be “smarter” about allocating limited dollars; and trends such as “pay for success” are shifting the risk from government onto philanthropy.
  • Increased focus on collaboration and collective action presents incredible possibilities and significant challenges for the sector.
  • A new wave of donors is looking for innovative means to invest in social outcomes that is blending the capital and social markets.
  • Technology and ‘big data’ are changing how organizations work, presenting a new set of opportunities and potential barriers.
  • The increase of big money in political campaigns is threatening to drown out the voices of those who lack the resources to compete.