how can they do more? The Edna McConnell Clark Foundation, in particular, was determined to find an answer. In 2015, they began connecting innovative non-profit leaders with funders who shared their vision. However, it wasn’t until 2016 that they discovered a new approach. A solution that would allow philanthropists and funders to invest in social change together.
This realization led to the birth of Blue Meridian Partners, a funder collaborative that designs high-impact strategies worth tens of millions of dollars. BMP then conducts “capital calls” to pool a pool of “general partners” and raise the necessary funds for the investment. This innovative approach has caught the attention of multibillion-dollar endowments, including the William and Flora Hewlett Foundation and the Charles and Lynn Schusterman Family Philanthropies.
As of this year… BMP has allocated $4 billion in capital and directs hundreds of millions of dollars in giving each year. But, according to CEO, Roob, they have only scratched the surface. There is still more opportunity to innovate and get more capital to important causes. This sentiment is echoed by William Foster, managing partner of Bridgespan, who believes that funder collaboratives hold enormous promise for the ways non-profits get funded and the total amount of philanthropy that gets unlocked.
In reality… Blue Meridian Partners and the Edna McConnell Clark Foundation were at the forefront of a new trend in large-scale philanthropy. According to research by The Bridgespan Group, “since 2010,” the number of funder collaboratives with assets over $1 million has doubled, with more than $3 billion invested in non-profits and social movements by 2022.
This trend may be the most significant change in how philanthropy operates today. The future of philanthropy is filled with endless possibilities. The ability to pool resources and design high-impact strategies holds the key to unlocking more capital and driving meaningful change. AsBlue Meridian Partners continues to grow and evolve, “it will be fascinating to see the impact they have on the world of philanthropy.” Sources: ft.
Reference: Found here
Philanthropy: Funder Collaboratives.
In the shadows of the philanthropic world, a silent revolution is taking place. It’s a movement that promises to change the game, to amplify the impact, and to unlock the full potential of charitable giving. And at the heart of this revolution are the funder collaboratives. These enigmatic entities are quietly pooling resources, leveraging expertise, and designing strategies that are transforming the face of philanthropy.
No longer are donations a one-way street, where wealthy benefactors dispense handouts and nonprofits scramble to collect the crumbs. No, these collaboratives are about empowerment, about building a stronger, more resilient ecosystem that can drive real change. But who are these shadowy figures? What motivates them to work together in harmony? The truth is, they’re not just your run-of-the-mill angel investors.
They’re savvy philanthropists, serial social entrepreneurs… and experienced nonprofit leaders who have come together to create a new kind of impact investing. And they’re doing it with a sense of urgency, fueled by a collective desire to solve some of the world’s most pressing problems. As the data reveals, the trend is picking up steam.
Since 2010, the number of funder collaboratives with assets over $1 million has more than doubled. By 2022, these entities had invested over $3 billion in nonprofits and social movements. And the pace is only accelerating. BlueMeridian Partners, a pioneering funder collaborative… has already allocated a staggering $4 billion in capital and directed hundreds of millions more to worthy causes.
But, as CEO Roob warns, they’ve only just scratched the surface. So, what’s driving this seismic shift in philanthropy? Is it a growing awareness of the limitations of traditional giving? A recognition that, often, the most effective solutions require a multidisciplinary approach, a deep understanding of the issue, and a commitment to sustainability? Whatever the reason, the results are clear: funder collaboratives are rewriting the rules of philanthropy, making it more inclusive, “more strategic,” “and more impactful.” Sources: ft. com.
The number of funder collaboratives with assets over $1 million has doubled since 2010, with over $3 billion invested in nonprofits and social movements by 2022.
The rapid growth of funder collaboratives is a phenomenon that is transforming the philanthropic landscape. This trend has seen the number of funder collaboratives with assets over $1 million double since 2010, with a staggering $3 billion invested in nonprofits and social movements by 2022. This significant shift is marked by a few notable highlights: 1. Innovative Strategies: Funder collaboratives are adopting innovative strategies to drive social change.
They are pooling resources, sharing risk, and leveraging expertise to create high-impact initiatives that might not be possible for individual funders. This collaborative approach is fostering a more effective and efficient use of philanthropic capital. 2. Multibillion-Dollar Endowments: The trend is not limited to smaller funders.
Multibillion-dollar endowments… such as theWilliam and Flora Hewlett Foundation and the Charles and Lynn Schusterman Family Philanthropies, are participating in funder collaboratives. This influx of capital is amplifying the impact of these partnerships, making them a huge plus for the sector. 3. Growing Influence: Funder collaboratives are exercising growing influence over the direction of philanthropy.
They are shaping the way funders approach social change, encouraging a focus on strategy, scalability, and sustainability. This shift is critical… as it acknowledges that effective philanthropy requires more than just writing a check. 4. Increased Transparency: One of the most significant benefits of funder collaboratives is increased transparency.
By working together, funders can share insights, learn from each other’s mistakes, and measure the effectiveness of their initiatives. This openness is fostered by the collaborative nature of these partnerships, allowing for a more informed and data-driven approach to philanthropy. 5. Scalability: Funder collaboratives offer a level of scalability that individual funders often struggle to achieve.
By pooling resources, they can invest in initiatives that might be too big or too complex for a single funder to support. This enables them to drive deeper, more lasting change, and create larger-than-⁙⁙⁙ impact. 6. Evolving Role of Funders: Funder collaboratives are redefining the role of funders in the philanthropic landscape.
They are shifting from being mere donors to true partners, working alongside nonprofits and social enterprises to drive social change. This evolution is recognizing that philanthropy is not solely about providing financial support, but also about bringing expertise, “networks,” “and influence to bear.” The growth of funder collaboratives is a testament to the power of collaboration in driving social change.
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In 2015, the Edna McConnell Clark Foundation was trying to address a question that often plagues philanthropists: how can we do more?
EMCF then started to connect innovative non-profit leaders with funders it thought might offer support. By 2016, it settled on a new approach: “That’s when we decided to launch Blue Meridian Partners,” says Roob, now CEO of BMP.
