5 trends for Philanthropy in 2022

Trend 1: Philanthropy based on trust

Trust-based philanthropy is rooted in values ​​that help build mutually accountable relationships – in the same way that leadership teams often work toward common goals. The pandemic has accelerated the way philanthropists operate. Working in a crisis context, they have had to show more flexibility and trust with implementing partners – giving partners more leeway in how they spend their grants. Thanks to renowned philanthropists like MacKenzie Scott leading the way, we believe this trend is here to stay and we’ll see more philanthropists follow suit.

Trend 2: Add a lens

How can philanthropists unpack the myriad issues that concern them and choose where to focus their efforts? Given the interconnectedness of many issues, philanthropists may choose to add an additional lens to their giving without losing sight of the issue that matters most to them – addressing multiple issues at the same time. Adding lenses, such as gender equality, allows philanthropists to improve educational outcomes and address gender-related topics such as menstrual health, preventing violence against girls, forced early marriage as part of their educational intervention.

Adding a lens means not only adapting the intervention, but also putting in place specific key performance indicators to measure the impact of their programs on education and the interconnected issues in this context, such as girls, people with disabilities or the climate, for example.

Trend 3: More group giving

The world’s problems are too big and too complex for one person to solve alone. Over the past few years, we have seen different stakeholder groups come together to form strategic partnerships, tackle problems together or pool resources. One way to do this is to create collective giving circles, which allow like-minded people to pool their time, resources, and knowledge to focus on a topic that concerns them jointly. We expect this type of philanthropy to continue to grow as large numbers are mobilized, meaningful connections are made, and proven successes are achieved – inspiring others to put their egos aside and team up.

Trend 4: Social finance

While it is crucial to attract more capital to solve social and environmental problems, it is equally essential to deploy it effectively and in a more sustainable way. This has led to the development of blended finance approaches where the boundaries between the worlds of investment and philanthropy are blurred. Social finance, for example, is an approach to investing that explicitly focuses on generating (social) impact. It incentivizes and rewards the achievement of results, putting impact first. Its rise is driven by the growing recognition that to solve the world’s most complex and intractable social and environmental challenges, investors need to focus more on impact. This requires tackling root causes, putting individual benefit at the center of solutions, focusing on rigorous and transparent measurement of results, and helping impactful local models become financially viable. For even greater impact, social finance can foster new partnerships with private investors to expand the pool of funding available at scale and catalyze impact-driven innovations.

Trend 5: Diversity of Thought

Philanthropy has seen an acceleration towards greater diversity, equity and inclusion. We saw greater diversity among professionals in the philanthropic sector between 2018 and 20201 – including more women leading significant philanthropic efforts and talent from minority groups and neglected communities better represented at the table where grants are made . This drive toward more inclusivity is changing power and interpersonal dynamics, and calling for greater self-reflection by organizations, their boards, and management about how they do their jobs, where, and with. Who. Ultimately, we can expect more people to confront their biases and ensure that problem-solving innovation is maximized through diverse talent applying their experiences and perspectives to solving philanthropic problems.

Main contributor: Editorial UBS

For more 2022 philanthropy trends, check out the original Ten Trends for Philanthropy in 2022 blog.

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Revision Code: IS2200793

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