In the dynamic and fast-paced world of today, discussions around strategic philanthropy, particularly its role in effecting systemic change, are gaining momentum. But why this pressing shift towards a systemic approach in philanthropy? Why, now?

Simply put, we can no longer afford to put Band-Aids on gaping societal wounds. The complexity and interconnectedness of our world’s challenges demand a deeper examination of root causes, not just symptomatic relief. For philanthropy to be transformative, it needs to dig deeper and understand the intricate web of underlying factors that perpetuate societal problems.

Take, for instance, the issue of poverty. Donating food and clothes might provide immediate relief, but it does little to address the systemic problems of unequal resource distribution, lack of access to education, or discriminatory policies that are rooted in race or gender. To truly elevate communities out of poverty, philanthropists need to invest in initiatives that dismantle these systemic barriers and become co-creators of solutions rather than mere benefactors.

‘The modern philanthropist’s role is more intricate than ever, demanding both breadth and depth of understanding, a willingness to adapt, and an unyielding commitment to genuine impact’

Historically, the philanthropic approach to societal problems has been rather linear: identify a commendable NGO, fund it, and hope for the best. However, as Nick Grono, CEO of the Freedom Fund aptly pointed out during a conversation hosted by Pearl Initiative’s Philanthropy Circle Project, the challenges we face are too multifaceted for such a simplistic approach. Instead, philanthropic efforts must begin with a holistic understanding of the issue at hand, breaking it down to discern where value can truly be added. To do so, three key themes stand out.

Collaborations

Firstly, forging collaborations with a diverse array of stakeholders, ranging from national governments to local community groups on the ground, is a necessity and not an option. Addressing the multifaceted challenges of today’s world requires an approach that combines broad, global perspectives with intimate, local knowledge that is deeply nuanced. While high-level policy changes have their role, sustainable change frequently finds its origins in the small but responsive actions of grassroots initiatives.

Efforts to harmonize the objectives and actions of diverse stakeholders, each driven by their unique motivations and interpretations, present a considerable challenge. As Ellen Agler, CEO of the End Fund, eloquently highlighted during the same conversation mentioned above, the key lies in wholeheartedly investing in “the process of alignment, active listening, gathering disparate voices under one roof, nurturing community ties, and dismantling existing barriers.” The path to meaningful systemic change is carved not solely by achieving unanimous agreement, but by fostering an environment where diverse voices are heard, respected, and incorporated into decision making.

Data emerges as another crucial tool in this endeavor.

It offers clarity on where the needs are greatest, how interventions are performing, and what adjustments might be necessary. For philanthropists, gathering data should not merely be an academic pursuit; instead, it should serve as a guiding compass towards more meaningful and informed interventions.

Drawing from her experience with the Luminos Fund, Caitlin Baron, CEO, shed light on a pivotal distinction in data collection practices. While there’s an established emphasis on historical data, used primarily to assess the success of previously executed programs, there’s a growing recognition of the importance of real-time data. This type of data is invaluable at every step of a program’s lifecycle, from conceptualization to mature implementation. It facilitates immediate, ground-level modifications in the delivery of educational programs.

Hence, while historical data aids in evaluating the effectiveness of ongoing initiatives, real-time data equips educators and supervisors with timely feedback, empowering them to implement changes as and when needed, without the constraints of waiting for a new academic cycle.

Lastly, the evolving landscape of philanthropy calls for diversity in funding models.

Every donor brings a unique motivation and vision to the table. Both the challenge and opportunity lie in aligning these diverse interests towards a singular mission grounded in one unified purpose.

As Ellen Agler exemplifies through the workings of the End Fund, they have always been sharply attuned to their central objective: to enable those vulnerable to neglected tropical diseases (NTDs) to lead healthy and prosperous lives. Recognizing the diverse interests of donors, the End Fund’s funding system allows donors to contribute towards specific issues that resonate with them, which staying grounded in the core purpose of the End Fund.

While some are drawn to the broader fight against tropical diseases, others aim to combat poverty, recognizing the role of the End Fund’s battle against NTD. Still, some donors are laser-focused, wanting to fund efforts aimed at a particular disease or even a specific country. In response, the End Fund has developed varied funding opportunities, ensuring every donor feels a connection to the cause they champion. By embracing a flexible funding model that acknowledges and blends the passions of various philanthropists, we can channel this rich diversity into a potent agent of transformative change.

Strategic philanthropy has been one of the deepest passions of my career. Today, more than ever, our collective future and our ability to transform many of the broken systems that surround us hinge not only on the philanthropic dollars allocated, but on the nuance of our approach, the inclusivity of collaboration, our ability to co-create, and the intelligence of data-driven decision-making.

While individual motivations vary, the collective goal remains consistent – crafting a better, more prosperous, and equitable world for all. The modern philanthropist’s role is more intricate than ever, demanding both breadth and depth of understanding, a willingness to adapt, and an unyielding commitment to genuine impact. As the philanthropic realm continues to evolve, let it stand as a symbol of hope, demonstrating that when diverse minds unite with shared purpose and strategic insight, monumental change isn’t just possible—it is inevitable.

Dina H. Sherif is currently a Senior Lecturer at the Massachusetts Institute of Technology’s Sloan School of Management where she also acts as Executive Director of the MIT Legatum Center for Development and Entrepreneurship

Khadija Ba co–founded SENEUAE, an educational venture linking West African students to universities across the UAE,