US Giving Pledge poses $600bn question

Other commentators focused instead on the culture of contributions that this call to action might create. And some pundits were deeply sceptical – questioning whether half was enough; whether the money would be used well; whether most pledgers had already made the commitment; whether the goal was truly social good or only public relations.

All of those are fair questions, and we’ve heard our share of them at Rockefeller Philanthropy Advisors from donors, non-profit leaders and the media. And before we address the topic, we generally let them (and now you) know that we’ve been advising the Gates Foundation’s philanthropic partnerships team on this and other issues related to increasing philanthropy and its impact; we’ve also received grants from the Gates Foundation.

Certainly the most critical question is what difference ‘The Giving Pledge’ will make. There are already plenty of examples of philanthropists donating the vast bulk of their wealth in many cultures and eras.  But the Gates-Buffett plan has some unique features that are worth focusing on.

First of all, there’s the timing. Over the past decade or so, awareness of and participation in philanthropy has grown.

A growing expectation of philanthropic involvement is evident in the many programmes offered by banks and wealth managers for their clients around the world. Opportunities to understand, experience and get involved in issues around the world have been transformed by new technologies. Meanwhile, according to research by Edelman Public Relations, the recent economic debacle has challenged our confidence in the private and public sectors – but reinforced our belief in what the non-profit sector can accomplish. And solutions (like social enterprise and mission investing) that blend the for-profit and non-profit have dramatically increased appeal. Thus, the conditions are in place for a successful movement to galvanise those with significant resources to apply them to philanthropy.

Second, there’s the peer community.  Less attention has been focused on this, but  'The Giving Pledge’ plans to hold regular meetings for its participants. The website will include statements from all those who have pledged. That’s a tremendous source of encouragement and knowledge sharing. As Emily Dickinson told us, "the soul selects her own society". For the members of  'The Giving Pledge’, being able to share ideas and inspiration will help get them onto the on-ramp for serious philanthropy more quickly.

Peer-to-peer conversations and exchanges are incredibly valuable for this work. Believe it or not, many billionaires find themselves strangers in a strange land when they wish to embark on philanthropy that goes beyond giving to large medical, educational or arts institutions. Donor resources to help them realise their tremendous potential are far too scarce, or hard to find, we hear over and over.

That, from our perspective, is the great potential of 'The Giving Pledge': with broad agreement that philanthropy can make a substantial difference on critical issues, and with the creation of a new donor community, potential donors can both get involved and commit serious funds more quickly. ‘The Giving Pledge’ might be the accelerant we need for philanthropy’s potential to be unleashed.

If that forecast holds, and 'The Giving Pledge' is enormously successful in promoting philanthropy, what does that mean for those of us who provide philanthropic advice and counsel? More donors knocking on our doors? More donors answering the door when we knock? That could well be – but while a growth in philanthropic commitment may be a necessary component for the growth of philanthropy advice, it isn’t sufficient.

For that to happen, we’ll have to be able to demonstrate that we provide real value – that paying us isn’t a diversion of funds from the ultimate beneficiary, but rather a way to ensure that funds go to the intended beneficiaries.

First of all, we’ll have to be able to demonstrate that having a strategy makes a difference, and that it’s worth researching options to make better choices. We’ll have to be clearer than ever about impact – what it means, what can be assessed, what is currently beyond us.

And we’ll need to be clear about how philanthropy really works, how it intersects with public funding, how large the relative capital pools are, and when investment is a real option, not just a metaphor.

None of us can do any of that alone, and so it’s time for us in the philanthropic advisory world to make our own pledges to one another, and form our own peer community to share insights and ideas.  Why should billionaires have all the fun, anyway?

Melissa A. Berman is president and CEO of Rockefeller Philanthropy Advisors. www.rockpa.org

© 2010, Rockefeller Philanthropy Advisors, Inc.