New Philanthropy for More Impact
2024 Aspen Ideas Festival Introduces Innovative Approaches for Changing Times
Traditional models of philanthropy are being turned upside down. More decision-making authority and control are going to the people and organizations doing the work on the ground.
At the 2024 Aspen Ideas Festival, five key themes on bold philanthropic approaches emerged:
- New, bottom-up models needed — Up-end traditional philanthropic models by empowering communities to better address systemic inequities and drive long-term, measurable impact.
- More intense allyship required — Tackle complex social and economic challenges with more intentional collaboration and partnerships among philanthropic organizations, businesses, and community leaders.
- Wealth-building for underserved populations is key — Focus on investing in underserved communities to promote economic mobility and generational wealth.
- More data, more tech, more AI, more innovative funding tools — Identify and address the unique needs of different communities and amplify the impact of philanthropic capital with newly developed technological solutions.
- Aggressively address anti-DEI backlash — Build courage and solidarity among philanthropic organizations to legally protect and promote race-based initiatives.
Below we’ve summarized the highlights of three panels:
Learn more about the 2024 Aspen Ideas Festival and how to access additional insights.
Philanthropy and Investing for New Realities
This panel, moderated by documentary filmmaker Perri Peltz, included Mark Suzman, CEO of the Bill & Melinda Gates Foundation; Vilas Dhar, President of the Patrick J. McGovern Foundation; Henry Timms, CEO of Brunswick Group and co-founder of Giving Tuesday; and Anne Finucane, Chair of Rubicon Carbon.
Democratizing Philanthropy for Greater Impact
Mark Suzman described the Gates Foundation’s goal of addressing global inequities by leveraging philanthropic capital in ways that neither the private sector nor the public sector can or will.
We’re trying to think of what is the distinctive role that philanthropic capital can do that is neither something the private sector could or would do or the public sector could or would do without a catalytic impulse or push from philanthropy.
Suzman also underscored the Gates Foundation’s focus on using data and metrics to measure impact, particularly in areas like vaccine distribution and agricultural support for smallholder farmers in low-income countries. By prioritizing measurable outcomes, the foundation ensures its investments translate into tangible human benefits.
From the foundation’s perspective, what we were looking for is saying how can you use our money to get to outcomes that, as you say, are very much human outcomes: the lives saved (and) the opportunities provided for the poorest and most vulnerable.
The Role of AI in Bridging Divides
Vilas Dhar brought a critical perspective on the role of technology, particularly AI, in philanthropy. He warned of the risks of amplifying existing inequalities but also highlighted the potential for AI to drive positive change. He called for a structural transformation in how AI is integrated into philanthropic efforts, ensuring it benefits the most vulnerable communities.
It strikes me that philanthropy has a role to play here that’s more than just how do we make sure everybody has access to a computer. It has to be about a restructuring of our basic vision of what the future looks like. I think about it often as we have a 21st century problem (and) we have traditional institutions of philanthropy that very much operate in a 20th century mindset, operating on an 18th and 17th century model of economics. All of which are about to be disrupted by AI… Don’t we think philanthropy should be doing something about this that’s a little bit more than funding some nonprofit partners?
Giving Tuesday: A Model for Democratic Philanthropy
Henry Timms, the visionary behind Giving Tuesday, shared how the movement has democratized giving on a global scale. One of the most important lessons from Giving Tuesday is the power of trust and decentralization. It’s a platform that allows people to take the concept and adapt it to their local context.
The lesson from Giving Tuesday, I think, was we actually changed our mindset about the institution… in what I would classify as an “old power” way, which is we’re in control, we’ve got all the power, we make our decisions, you do things on our terms. Giving Tuesday was an act of trust. What we said was people take Giving Tuesday and make it better wherever you are in the world.
This approach has led to diverse initiatives, from university fundraising drives to community literacy projects in Sierra Leone, demonstrating the power of grassroots involvement.
Innovative Solutions and Risk-Taking
Anne Finucane spoke about the necessity of innovative solutions and the willingness to take risks with catalytic capital. She cited the example of water.org, which launched a bond to fund micro-lending in developing economies.
If you want to invest in something and it goes to the greater good and you could get a return, why not try it?
This innovative approach not only supported vital infrastructure projects but also provided a financial return, illustrating the potential of impact investing.
Engaging Younger Generations
The panel also addressed the evolving landscape of philanthropy, particularly the increasing involvement of younger generations. Millennials and Gen Z are identifying as philanthropists in much larger numbers. They are looking for ways to contribute dynamically to society but often distrust traditional institutions. This shift necessitates a more flexible and responsive approach to philanthropy, one that embraces new ideas and methodologies.
The Importance of Community and Agency
A recurring theme throughout the discussion was the importance of community involvement and agency. The panelists emphasized that philanthropy should not just be about top-down solutions. It’s about empowering communities to take action and drive change from the ground up. Philanthropy needs to support local institutions and leaders in addressing their unique challenges.
Call to Action
In the words of Henry Timms:
Philanthropy is so much more than just giving the money; it’s about agency and it’s about democracy. One of the ways we participate in a democracy is we actually make an act of philanthropy, not because we want to show off about how worthy we are, but because we want to be something bigger than ourselves.
This call to action resonates across the sector, inspiring a new generation of philanthropists to think creatively and act boldly in their quest to drive meaningful change.
Does Philanthropy Need a Course Correction?
This panel discussion moderated by Sharon Epperson, Senior Correspondent for CNBC, brought together Melissa Bradley, Managing Partner of 1863 Ventures; Jay Bailey, CEO of the Russell Innovation Center for Entrepreneurs; and Dalila Wilson-Scott, Chief Diversity Officer at Comcast.
Redefining Philanthropy: Beyond Charity
Melissa Bradley set the stage by challenging traditional views of philanthropy, urging the audience to see it as part of a broader investment spectrum.
To me, philanthropy is nothing but a part of a capital stack that can be used to reimagine what does capitalism look like so it actually takes care of people.
She emphasized the importance of viewing philanthropic dollars as catalytic capital that can mitigate risks and support sustainable development goals.
Bradley’s insights were supported by Jay Bailey, who shared his journey of establishing the Russell Innovation Center for Entrepreneurs (RICE) in Atlanta. Despite initial skepticism and discouragement from potential funders, Bailey persevered, demonstrating the impact of intentional investment. He emphasized the importance of viewing philanthropy as an investment rather than charity.
Philanthropy is not charity. And I think these programs that increase the well-being, the prosperity, the economic mobility of our towns and our cities and our country cannot be seen through those lenses.
The 2020 Surge in Funding Racial Equity and Its Aftermath
The panelists reflected on the surge of philanthropic commitments following the murder of George Floyd in 2020. Sharon Epperson noted the significant increase in funding for racial equity, jumping to $4.2 billion in 2020 from a mere $3.3 billion between 2012 and 2019. However, the momentum has waned, and sustaining these efforts remains a challenge.
Bradley pointed out the persistent need for continued investment and support. She criticized the episodic nature of philanthropic responses, which often fail to address the long-term, systemic issues at play.
The problem is the tragedy did not go away, and the tragedy didn’t just happen in 2020. So the amount of dollars that were put in did not eradicate the expense, the lost dollars of historical racism.
Innovative Solutions and Strategic Risks
Throughout the discussion, panelists highlighted innovative solutions and the importance of taking strategic risks with philanthropic capital. Panelists emphasized the need for courageous and intentional action, particularly in the face of legal challenges and anti-DEI backlash.
Dalila Wilson-Scott focused on the role of corporate philanthropy and the importance of aligning philanthropic efforts with a company’s core values and expertise. She underscored the significance of engaging employees and leveraging corporate assets beyond financial contributions.
Philanthropic capital is some good risk capital, but it does not work well alone. So for us we think about the financial investments we make in companies and grants, but we also think about what else can we bring to the table — whether it’s the the power of our media platform or what how we think about broadband and technology or how our talent shows up.
The Path Forward
The panel concluded with a call to action for funders and philanthropic organizations to adopt a more strategic, intentional, and inclusive approach. Epperson encapsulated the essence of the discussion, urging all stakeholders to continue the conversation and collaboration necessary to drive meaningful change. “Understanding there’s a risk here, but the reward can be substantial,” she concluded.
Artificial Inheritance: Generational Wealth for All
The pursuit of generational wealth in America is fraught with challenges, particularly for underserved communities. This panel featured insights from Kristy Fercho, Head of Diverse Segments, Representation, and Inclusion at Wells Fargo; Santhosh Ramdoss, CEO of Gary Community Ventures; Dara Eskridge, CEO of Invest STL; and Damien Dwin, CEO of Lafayette Square.
Challenging the Status Quo
Kristy Fercho opened the discussion by describing the bold steps she took within Wells Fargo following the murder of George Floyd, initiating a special purpose credit program to support black homeowners. This program reduced interest rates and covered closing costs for black families, allowing them to refinance at more favorable terms. The program has helped 6,300 families by not only preserving homeownership but also providing a crucial financial cushion during economically turbulent times.
Innovative Solutions to Wealth Building
Dara Eskridge highlighted the necessity of both stability and wealth-building initiatives. Invest STL’s pilot program in St. Louis provides direct household investments to combat displacement in gentrifying neighborhoods. Selected families receive $22,000, with the stipulation that $2,000 is used for immediate needs while the remaining $20,000 is invested in property or businesses within the community.
All inheritance is artificial and, more specifically, it’s unnatural. There’s not a single instance in nature that I can think of where one is able to enjoy the harvest or the honey without laboring for it. For those who inherit it, wealth was manufactured on the assembly line of extraction and selective redistribution. So what we really need to do is expand that assembly line so that we can get wealth to all of America to deliver on its promise.
Santhosh Ramdoss echoed this sentiment, emphasizing the need for philanthropic organizations to rethink their approach to asset management.
Our belief is that, really, our assets should go away. And our assets shouldn’t go away in a way where we give it away as a handout. Our assets should go away where we become a wealth engine for the community. So we’re working towards what we call an asset transfer or a community wealth building where we can move from our balance sheets into the balance sheets of community and individuals. I think that’s the real challenge in front of organizations that are asset holders.
The Role of Catalytic Capital
Damien Dwin brought a pragmatic perspective, focusing on the importance of making strategic investments in working-class communities. He underscored the need for data-driven, customized solutions to support these communities. Lafayette Square aims to invest in businesses that employ working-class people, offering not only capital but also essential services to reduce turnover and enhance benefit adoption.
This is a pro-America agenda. It works for Republicans and Democrats, it works in big states and small states. We cannot have a capitalist system where the money goes geographically to a handful of places and that issue rhymes with everything that we’re talking about in the way of an inheritance… I’m focused on an inheritance for working-class people and working-class places.
Building a Collaborative Framework
The panelists collectively called for a more integrated approach, combining public and private efforts to address the systemic barriers to generational wealth. They pointed to the potential of financial educational initiatives to lay the groundwork for building wealth. As Fercho explained:
How do you start with the stepping stones, because you can give someone inheritance (but) if they don’t have the basics, they’re not going to be able to maintain it.
A Call to Action
As the session concluded, the message was clear: addressing the racial wealth gap requires both innovative thinking and bold action. Catalytic capital — funds that are willing to take risks to achieve transformative impact — must be deployed to support underserved communities. This, combined with comprehensive educational programs and strategic public-private partnerships, can pave the way for a more equitable future.
Learn More about the 2024 Aspen Ideas Festival
The 20th anniversary of the Aspen Ideas Festival took place from June 23–29, 2024. The festival, themed “Bright Minds for Dart Times,” featured over 300 speakers and 100+ sessions that covered a wide array of topics.
You can watch recorded sessions on the Aspen Institute’s website and YouTube channel.
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Disclaimer: This article uses Otter.ai and YouTube to create transcripts and various LLMs to help summarize and proof-read. All content for the article was hand-curated and checked for quality.
