The Unbidden Tropes of Philanthropy: Not your Grandfather’s Oldsmobile

By: Porter Durham, Partner

I noted something the other day in my general reading. It was one of those classic “garage beginnings” stories that is so much a staple of modern-day tech industry. You have surely read them too: an idea among friends hatches in, and then fledges from, the basement or garage of the typical suburban ranch house. An all-inclusive repurposed warehouse then becomes a larger campus as the fledgling business attracts capital and builds market share and grows beyond first conceptions. The few become the many, a new community both within and outside of the new technology emerges, and those fortunate and bold enough to take the chance become paper millionaires. It is a now classic American tale.

Thanks, Porter, for that brief walk down capitalism lane, you might be thinking. Well, yes, but there is more. And this is the interesting bit. What happens next is less pat and more messy, as it should be. The founder becomes an impediment to further growth, the company stalls, new sources of capital pour in, and the founder exits with exceptional wealth and a desire to “do good.” We are going to tackle the big issues, they say, move the needle, do things never before attempted. With brain and heart and resources, nothing will stand in the way.  At this very point, what is very new and very different about philanthropy in our time takes shape. 

In the last century, American industrialists proceeded with their philanthropic dreams the way they had done so with their business empire building: we will issue a bold mandate, create a large vision, and build an edificial building to house the idea factory that would pump out the social good and fund it. The same principles that worked for cars and foods and oil and tobacco and textiles would be trained on society.  Philanthropy was made “industrial” in its approach because that is what the wealth creators of that time understood. Mechanistic, efficient, and patterned. And their successes stand before us, mostly physical in nature, but not entirely. Policy changed as well. Pure charity played a large part, and the communities where the factories were located benefited. The failures, euphemistically called “learnings,” were chalked up to experimentation that advanced the ultimate product. Progress was steady, even slow perhaps, and ongoing into perpetuity.

But today, philanthropy is not your father’s Oldsmobile, as they say. Our new techno-philanthropists, and those who are taking the reins from the prior generations of “old” philanthropy, eschew those settled models. They want success, and they want it now. They want less bureaucracy, less wasted motion, no edifices to celebrate themselves and the work (well, mostly). And giving “in community” means the larger, tech-tied variety. Giving itself is now referred to more and more as “investing,” as the principles and metrics which worked so well in the for profit space are applied to the nonprofit one. 

It all makes obvious good sense, right? So, why are those of us in philanthropic leadership and management still anchoring in a prior time? Why is generational wealth shift still considered a legacy project? Why are nonprofits still raising money mostly the way it was raised “back in the day?” Why is “mere charity” overlooked? Why is person-level micro philanthropy largely ignored?

In truth, even for the new philanthropists, the old tropes still arise. They come unbidden from our psyche because that is the example we know. Today’s challenge for those of us who are privileged to serve in an advisory role with the wealthy is to help the families of past philanthropic wealth break free from that past while honoring it. For the new philanthropists, our challenge is even more intense. Without past patterns to burden it, today’s philanthropic engine can produce new thinking and new approaches. What does collaboration mean in this space? What should delivery systems for social welfare look like? How can the entire effort of philanthropy be thoughtfully and effectively coordinated. How can the multiple layers of “giving” and “doing” work harmoniously to effect the goals we all desire but cannot achieve singularly. Money alone can’t fix it. Uninformed efforts can’t either. Philosophizing the points only takes us so far.

At Grant Philanthropic Advisors, we are in these conversations daily…..with families, nonprofit leaders and social influencers. And what we are learning may surprise you. If you or someone you know or work with could use our insights, let’s connect. There is much to share. And we might be able to help you break away from old patterns to establish new ways that recognize and honor what went before.

About Grant Philanthropic Advisors:
We’re an independent firm helping clients to focus and maximize their philanthropy—in turn, strengthening the fabric of our communities. Founded in 2019, we help donors move from responsive patterns of giving by assisting clients to identify values and become more strategic in their philanthropy. Our goal is to help donors to become more effective as change-makers. We work with foundations (large and small staff teams), donor advised fund holders, multi generational families, individuals, philanthropy supporting organizations and corporations to design philanthropic strategies.