The textbook definition of philanthropy is the desire to promote the welfare of others, through donations to good causes. However, as societal outcomes are not measured, it is often unclear what happens after the money has been donated. In this context, our clients are asking increasingly for more effective ways to deliver philanthropic capital spending.
We suggest an impact-philanthropy approach such as the UBS Optimus Foundation-backed The Collaborative hosted by UBS, or its alliance with Yunus Social Business, the Rockefeller Foundation, and Impact Water, which aims to develop the first 'Social Success Note' (SSN) to support clean water and sanitation in Africa.
These partnerships exemplify an outcome-based approach by encouraging different organizations to direct investment where they have the most expertise, and by inspiring generations of social entrepreneurs to deliver measurable societal impact in a commercial and scalable way.