Social entrepreneurship and impact investing, which harness the power of financial markets to solve social problems, have and will continue to shape fundraising and philanthropy.
The challenge - and opportunity - is to balance impact AND financial sustainability, recognizing that the right mix will not likely fit neatly into any organizational and/or investment strategy.
At the same time we need to concentrate on solutions, not ideologies. For instance, the negative perception of subsidy is often misplaced. Philanthropy, leveraged strategically, can play a critical early 'subsidy' role in attracting other monies. It also has the potential to open markets; establish new, more sustainable enterprises; and solve important problems.
Beyond the rhetoric, the real opportunity is to create new, flexible business models that better match the vision and scope of issues they are intended to support. I prefer blended funding approaches that bring together and leverage all tangible and intangible assets including private philanthropy and impact investments to build larger pools of capital.
It is a new world. How 'Brave' will be up to us and our willingness to tolerate risk and learn from the inevitable failures along the way. Move forward and share your thoughts at email@example.com.
Founder and President - Melarbit Partners, Inc.
"Toto, I have a feeling we're not in Kansas anymore." L. Frank Baum