Impact giving is a philanthropic approach that emphasizes measurable outcomes and social change. Instead of simply donating to a cause, impact givers actively seek to understand the problem, identify effective solutions, and measure the results of their giving.
Key Characteristics of Impact Giving:
Focus on outcomes: Rather than just supporting an organization, impact givers prioritize achieving specific goals and measuring progress.
Research and due diligence: Donors carefully research organizations and programs to identify those with the highest potential for impact.
Collaboration: Impact givers often work with other donors, nonprofits, and experts to maximize their contributions.
Measurable results: Tracking and evaluating the impact of their giving is essential for impact givers.
Examples of Impact Giving:
Outcome-based grants: Funding is tied to specific, measurable results achieved by the nonprofit.
Pay-for-success models: Investors provide upfront funding for a program, with repayment contingent on achieving specific outcomes.
Social impact bonds: Government or philanthropic investors provide upfront capital to fund social programs, with repayment coming from the savings generated by the program.
In essence, impact giving is about making a difference that can be seen and measured. It’s a shift from traditional philanthropy towards a more strategic and results-oriented approach.