Philanthropy has diversified into various innovative forms, reflecting broader societal changes and the desires of donors. This article delves into the key facets of contemporary philanthropy: Community Foundations, Giving with Specific Lenses, Giving Circles, Democratising Grantmaking, Bequests, and Structured Giving.
Collective Giving
Collective giving amplifies the impact of individual contributions by pooling smaller donations to create larger, more transformational gifts. Examples of this in action include:
- The Funding Network 's flagship event model, which involves crowdfunding pledges at pitch nights for grassroots charities in four impact areas: young people, Indigenous, equity & inclusion and place-based charities.
- Humanitix 's ticketing platform, renowned for its social impact improving children’s education and recently featured in the Forbes top 50 corporate givers list in 2024.
- Giving circles, where individuals combine their resources to achieve greater impact and deeper engagement, exemplify this approach. For example, The Five Bucks Campaign is a low barrier entry at $5/week pooling funds into an ACF Named Giving Fund to grant to three impact areas: climate, living standards and education.
Giving with Specific Lenses
Beyond selecting a cause, some donors apply specific lenses to their grant-making decisions to target particular issues more effectively. Examples include:
- Gender Lens: Australians Investing In Women ( AIIW ) and Noble Ambition’s She Gives campaign focuses on Australian Women entering the spotlight as influential modern philanthropists.
- Environment Lens: The Australian Environmental Grantmakers Network ( AEGN ) and Groundswell supports philanthropists focused on environmental causes.
- LGBTQI+ Lens: Pride Foundation Australia enhances support for LGBTQIA+ communities.
Melinda French Gates and MacKenzie Scott are prominent figures in the gender-lens movement, leveraging their wealth and influence to drive significant change. For the first time in history, women are on the verge of controlling the majority of personal wealth. The unprecedented transfer of wealth to women is projected to reach $30 trillion in the next decade.
Community Foundations
Community foundations like the Inner North Community Foundation, Geelong Community Foundation, and Sydney Community Foundation epitomise place-based philanthropy. These structures, owned and managed by local communities, make grants to address specific local needs. Australia's recent passage of legislation creating a new deductible gift recipient category mirrors Canada's success in establishing over 200 community foundations.
According to Dr. Andrew Leigh MP, Community Foundations align with the government's vision for a more democratic, egalitarian approach to charitable giving. “It feels more democratic, more egalitarian, and it matches the government’s ambition for charities and for philanthropy.”
Giving Circles
Giving circles engage donors in impactful discussions and foster deeper connections. They represent collective giving on a micro scale, addressing declines in charitable giving linked to wealth inequality, social isolation, and institutional distrust. Noteworthy examples in Australia include Impact100Melbourne , Kids in Philanthropy , and GiveOut .
One inspiring example is the Peninsula Latina Giving Circle, which pools resources from women across California to support grassroots organisations serving communities of color.
Democratising Grantmaking
A remarkable example of democratising grantmaking is Austrian heiress Marlene Engelhorn, who invited 50 members of the public to help decide the allocation of 90% of her inheritance (over 25 million Euros). Australia like Austria has no inheritance tax; see this graph of countries with inheritance tax . This shift empowers local decision-making, counteracts wealth inequality, and promotes broader community engagement.
Bequests
Bequests, although not new, remain a vital part of philanthropy. However, the use of bequests in Australia lags behind that in the US and UK. The rise of online wills has made it easier to include charitable gifts, though these gifts are sometimes contested.
BlueRock’s Wills & Estate Planning lawyers can assist those wishing to leave a lasting legacy through bequests.
Here are instructions for donors on how to include a charity by leaving a gift in your will .
Structured Giving
Structured giving involves establishing foundations, funds, or trusts to facilitate long-term philanthropy. The main legal structures in Australia are Private Ancillary Funds (PAFs), sub-funds with Public Ancillary Funds (PUFs), and testamentary charitable trusts. Over 1700 PAFs now exist in Australia, indicating the growth of private family philanthropy.
Structured giving vehicles help high-net-worth individuals connect with their family through philanthropy, leave a legacy, or teach philanthropic values to the next generation. These structures also help businesses engage employees and accelerate their community giving. The Be BlueRock Foundation , a public ancillary fund, exemplifies the benefits of structured giving .
Modern philanthropy in the 2020s is highly transactional, emphasising transparency and connection over traditional trust and values. While there is competition for donors' attention, transparent reporting remains essential. The examples provided illustrate the diverse and innovative ways individuals and organisations can engage in philanthropy, fostering inspiration and encouraging active participation in giving back. Contact BlueRock’s philanthropy consultants today to discuss your philanthropy goals.
