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More strategy, better data, more transpareny - Robert Rosen, head of philanthropic partnership at the Bill and Melinda Gates Foundation, shares his views on how philanthropic giving is evolving
By Astrid Zweynert
HONG KONG (Thomson Reuters Foundation) - The number of philanthropic foundations is growing around the world, most notably in the United States, home to more than 86,000 foundations compared to 4,000 in 1960.
They gave $52 billion to good causes in 2012, according to Foundation Center data.
The Thomson Reuters Foundation discussed the growth of philanthropy and its future role in helping to tackle some of the world's most pressing problems with Robert Rosen who leads a team that oversees the Bill and Melinda Gates Foundation’s relationship with philanthropists and charitable organisations across the globe. The Gates foundation is the largest private foundation in the world.
He spoke to the Thomson Reuters Foundation at the Philanthropy for Better Cities Forum, the first philanthropy forum of its kind in Asia focusing on metropolitan social issues and what part philanthropy can play to address the many challenges cities face from mushrooming populations.
Q: Given the explosive growth of philanthropy, is there a risk that giving is spread over too many areas?
A: The proliferation of giving in the way that it has been embedded in US culture is an extraordinary thing to celebrate, one of the things to celebrate is in fact the diversity of philanthropy. Just look at the many different areas to which giving can be directed. There is no shortage of needs and opportunities to make a difference. We got to be thoughtful about encouraging that diversity and not narrowing it so much so that you say these are areas that are the right ones to give to and others are not - you can never measure this.
Within the broader landscape of giving...we still have a significant evolution to make in terms of how we connect philanthropic money to the best possible places to deploy it. Whether you pick education, cancer or nutrition, for example - once someone has picked an area to focus on that they want to feel better informed and more empowered to give where it has the greatest impact. But as a sector have ample opportunity for improvement on that count.
Q: The public focus is often on the biggest foundations, like the Bill and Melinda Gates Foundation. Do you see the biggest impact coming from the biggest foundations or from the many smaller foundations trying to do good as well?
A:The answer is both. We've got to look across the spectrum. We've got to look at the pyramid of giving. At least from the United States perspective there is a massive amount that happens from all levels, as a proportion of income it's actually quite a bit higher from the bottom third. In terms of the grand scale of dollars (from the very rich), there is a massive opportunity there.
Q: Do you see philanthropy becoming more of an international phenomenon?
A: Yes, absolutely. We have seen this with the
Giving Pledge - the membership is growing globally. Most recently Mohammed Dewji from Tanzania and Prince Alwaleed from Saudi Arabia joined the now more than 150 pledgers. That is part of a trend of philanthropy growing internationally.
Part of what we're trying to do with the Pledge is to set a standard, it puts into question what are you going to do with this wealth. It has started a very important dialogue that if you have been extraordinarily fortunate that it becomes the norm that you not only give it back but do so in a thoughtful strategic and impactful way. And I think that is what is becoming more important to philanthropists around the world.
Q: How do you see philanthropy evolve in the next 20 to 30 years?
A:The recently announced $3 billion
Chan/Zuckberg initiative is an example of very much a long-term strategic effort - focusing on giving towards medical research. That type of money, that type of resource, of innovation you're not going to find elsewhere...This is where philanthropy is hitting the gap between what government can or could do and where the private sector fits in. You have to think about how the system works, the role of governments, the role of philanthropy, role of business. Society does have a voice overall we are holding all institutions accountable. Ultimately it's going to be a collective effort.
The 20 to 30 year conversation is a very interesting one - what will the philanthropic sector look like in the future? What is its role and how is it evolving? What does shared value look like on paper and how does it translate into reality? That's a rapidly evolving space. I think we could see massive evolution in terms of what the marketplace looks like.
Q: Do you see foundations moving away from investing in companies that damage the environment?
A: It's a broader issue than just foundations, the same could said for universities and other institutions. It's an important conversation to have - at the same time if you're not generating returns from your endowment that can be ploughed back into the giving that is also a risk. It's a question all foundations have to face up to but it's important to understand investment risks in that context too.
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