Editorial - Community philanthropy the world over

Community philanthropy is coming of age in a globalized world. After an extended formative period in the US and Canada, it has boomed in over 20 countries in the last three decades.

Moving into institutional adulthood, community philanthropy organizations worldwide are facing tough but necessary questions. What kind of impact are we having in terms of improving social conditions? What is the added value – for social good and the donors – of this new form of philanthropy? The main concern behind these questions is whether community philanthropy institutions are equipped – in vision, intention and operations – to bring about significant changes in their communities.

Most of us concur about visions and intentions for social betterment. Yet at the operational level many of our organizations are more focused on processes – awareness, participation, reform – than on impact. Some are beginning to move along the difficult path of linking philanthropic activity to concrete results in communities. A case in point is the community housing programme of the Puerto Rico Community Foundation. With the support of PRCF’s mixed strategy – grantmaking, technical assistance and training – NGOs in Puerto Rico built 1992 housing units in seven years, which represents US$139.5 million added value to communities. PRCF awarded $1.1 million in grants to these NGOs, thus achieving an impact ratio of $127 community value per dollar granted.

Community philanthropy organizations are uniquely positioned to promote significant changes in communities. Their coming of age represents a reassertion that the pooling of local resources – coupled with international support – endows communities for the achievement of long-lasting community changes and self-development. We need, however, to assume ultimate responsibility for the improvement of the lives of the ‘end-users’ of philanthropic activity: people in communities – a challenging task given that  philanthropic activity is so often channelled through NGOs.

Nelson I Colón
President, Puerto Rico Community Foundation