Guest post by Teri Behrens, Ph.D, and Michael Layton, Ph.D
This post first appeared as part of the Dorothy A. Johnson Center for Philanthropy’s 11 Trends in Philanthropy for 2021 report in January 2021. View the full report at this link: https://johnsoncenter.org/trends
At the Dorothy A. Johnson Center for Philanthropy, we think of philanthropy as an ecosystem of nonprofit organizations, individual donors, formal foundations of all types, and corporate giving programs. Essentially, it includes all of the nongovernmental entities who work toward improving our lives – that is, whose overall purpose is to express love of humanity.
The concept of an ecosystem comes from biology, where it is defined as a complex of living organisms, their physical environment, and their relationships in a particular unit of space. Increasingly, the word is being used to describe how organizations interact with each other and their environment. As Hwang (2014) noted,
An ecosystem … is about the dynamic interactions between things. It’s about how people meet, talk, trust, share, collaborate, team, experiment, and grow together. When an ecosystem thrives, it means that the people have developed patterns of behavior – or culture – that streamline the flow of ideas, talent, and capital throughout a system. (para. 11)
The concept of a nonprofit ecosystem got a boost from a 2008 article, “Cultivate Your Ecosystem,” in the Stanford Social Innovation Review by Paul N. Bloom and Gregory Dees. The authors argue that rather than finding gaps to fill, a social entrepreneur ought to understand where they fit as an entity within a larger, complex system.
In recent years, we’ve seen an increase in dynamic forces that are disrupting this philanthropic ecosystem. In previous years and in other trends we revisit in this report, we’ve described how some of these forces are affecting the sector. While complex systems are continually adapting to change, what has become apparent is that these trends are interacting in ways that were unforeseeable a decade ago. Some examples:
It may also reinforce the perception of an “Elite Charade of Changing the World” – the subtitle of Anand Giridharadas’s provocative, best-selling critique (2018). Rather than generating greater social capital and cohesion, philanthropy is another element aggravating divisions.
Even in their internal operations, lines are blurring. Over half of private foundations surveyed have part of their endowments in impact investments (Foundation Source, 2019), blurring the lines between business investments and philanthropy, investment manager and program officer.
It will require greater collaboration between and among the entities that comprise the philanthropic ecosystem in which they are embedded. It will require new ways of training and bringing new leaders into the sector, cultivating the ability to work across what have traditionally been sectoral and socio-economic boundaries.
For more content from the Dorothy A. Johnson Center for Philanthropy, consider joining the Center virtually for Lunch & Learn: 11 Trends in Philanthropy for 2021, on April 15, 2021.
Teri Behrens, Ph.D. joined the Johnson Center in 2009 and currently serves as the executive director. She is also the founder and editor-in-chief of The Foundation Review, the peer-reviewed journal on philanthropy published quarterly by the center. Teri is focused on embedding equity in the center’s work, building bridges between funders and nonprofits, and creating new career pathways in the sector.
Previously, Teri was the director of evaluation for the W.K. Kellogg Foundation, providing leadership for the foundation’s overall evaluation program. Her early career included roles in a nonprofit organization, state government, and private consulting. Teri holds a doctorate in psychology from North Carolina State University and a bachelor’s degree in psychology and English from Case Western Reserve University.
Michael Layton, Ph.D. joined the Johnson Center in September 2020 as the W.K. Kellogg Community Philanthropy Chair, the nation’s first endowed chair focused on community philanthropy.
Michael brings a wealth of experience to this role, including his work as a researcher, teacher, director, advocate, and consultant. He has worked closely with a mix of community philanthropy organizations throughout the Americas, and brings to his position a nuanced understanding the unique challenges and capacities of community philanthropy to act as a catalyst in promoting community-led development and in strengthening the local context for philanthropy.
Bloom, P. N., & Dees, J. G. (2008, Winter). Cultivate your ecosystem. Stanford Social Innovation Review. https://ssir.org/articles/entry/cultivate_your_ecosystem
Dorsey, C., Bradach, J., & Kim, P. (2020, May 4). Racial equity and philanthropy: Disparities in funding for leaders of color leave impact on the table. The Bridgespan Group and Echoing Green. https://www.bridgespan.org/bridgespan/Images/articles/racial-equity-and-philanthropy/racial-equity-and-philanthropy.pdf
Foundation Source. (2019, November). Survey: Impact investing and private foundations. https://foundationsource.com/resources/library/impact-investing-and-private-foundations/
Ho, H. K. (2017, September 18). 8 ways people of color are tokenized in nonprofits. Medium. https://medium.com/the-nonprofit-revolution/8-ways-people-of-color-are-tokenized-in-nonprofits-32138d0860c1
Hwang, Peter W. (2014, April 16). The next big business buzzwork: Ecosystem? Forbes. https://www.forbes.com/sites/victorhwang/2014/04/16/the-next-big-business-buzzword-ecosystem/#5d6d64c25456
Rooney, P. M. (2019, December 4). Where have all the donors gone? The continued decline of the small donor and the growth of megadonors. Nonprofit Quarterly. https://nonprofitquarterly.org/where-have-all-the-donors-gone-the-continued-decline-of-the-small-donor-and-the-growth-of-megadonors/
The generous will prosper: those who refresh others will themselves be refreshed.
(Proverbs 11:25)