Applying Business Strategies to Philanthropy

Silicon Valley is known for its entrepreneurial spirit and business acumen. Now in an attempt to aid philanthropy through donor giving and helping those in need, many business people are sharing their knowhow and reaping surprising results.

Jeremiah A. Hall, correspondent for The Christian Science Monitor, explains that, “Frustrated with slow and inefficient non-profits, some of Silicon Valley’s elite are bringing about fresh approaches to solving vexing social issues, such as helping the poor and reimagining how students are educated.

“And they aren’t just bringing money. Social entrepreneurs are bringing their business skills – everything from marketing to operations, along with their enthusiasm and business drive – to transform many nonprofits into savvy, goal-focused businesses.”

Laura Arrillaga-Andreessen, a philanthropist and author of Giving 2.0, a new book on how to improve one’s philanthropy states “We now live in a giving 2.0 world, and the definition of a philanthropist has changed. This is no longer about sympathy. It’s about strategy.”

In a world where a wealth of information is at our fingertips via the web, many donors are doing their homework before handing over their dollars. Accountability, research and numbers are sought after by donors to make sure their funds are going to good use and having positive outcomes.

Hall uses the example of “Thomas Siebel, founder of Siebel Systems, a Silicon Valley software company that was purchased by Oracle in 2005. Mr. Siebel decided to take a new approach to preventing drug abuse. Eschewing counseling and other traditional approaches, the Siebel Foundation took a page out of a business playbook and created a research-based, consumer marketing campaign. The program, called the Meth Project, relies heavily on consumer research like target-market surveys and uses that information to develop graphic advertisements that then saturate a community. The program aims to reach 70 to 90 percent of teens three to five times a week during a campaign.”

“Today’s donors want to navigate the possibilities and fund the proactive rather than the reactive,” says Arrillaga-Andreessen. “But if we’re to solve these problems, the onus is on givers to facilitate that change.”
In this constantly changing world, technology is certainly a catalyst for success in the world of non-profit fundraising. Philanthropy is a highly competitive field and without modern graphics, consistent communication with donors, and an easily maneuverable website, some other organization may snag the funds that were destined for your bank account.