Philanthropy Reimagined: Fueling Impact Through Innovation
A big thank you to all those who subscribed. Feel free to share this newsletter with your link to enjoy the gifts !!! 😉
Over the last few days, I’ve had some intense conversations with global leaders in education, innovation, and research funding. And wow — what a contrast between American and European approaches to philanthropy! This divide didn’t just catch my attention; it got me thinking about how we could completely reimagine funding for these critical fields. Today, I’m here to talk about philanthropy… but with a twist.
Why It’s Time to Rethink Education and Research Funding
Historically, education and research have leaned on two main funding sources: philanthropy (through donations or public grants) and private capital (investment dollars). But with public funding on the decline — largely thanks to government debt — philanthropy is increasingly filling the gap. Meanwhile, capital investment, with its focus on ROI, is struggling to find its place in the space, with only a few success stories where it was designed for financial performance from the outset. Transitioning from a nonprofit model to a capital-focused one? Rarely smooth sailing.
The Real Challenge for Schools: Balancing Funding with Mission
Many schools today depend heavily on philanthropy to grow, but few adopt a funding approach that brings in financial returns. That gap has created a growing need for a sustainable funding model — one that’s still largely untapped.
Philanthropy: Inspiring, but No Easy Ride
Right now, most institutions survive on donations with no expectation of financial return, aiming instead to drive social impact and transformation. This makes sense for education and research missions, but it’s an uphill battle, especially in Europe, where people are generally more reserved about giving and need lots of education on its impact.
After these conversations, one thing became crystal clear: philanthropy needs to go beyond charity; it should be paired with economic performance. Simply put, giving and ROI can go hand in hand.
Financial Performance + Social Impact: A Game-Changing Hybrid Model
In the U.S., where money is viewed as a tool rather than an end goal, I came across a brilliant model. The idea is straightforward and powerful: raise capital to fuel innovative projects and channel a portion of the “outperformance” to philanthropic causes. Think about it: a venture fund with a 30% return rate could allocate 50% of those returns to a philanthropic mission — like an educational institution.
This reimagined approach completely changes the game for fundraising: we’re not just raising money to give it away, but to create financial performance that, in turn, supports philanthropy. It’s a model that attracts investors who get a financial return and contribute to something meaningful at the same time.
Triple Impact: Innovation, Social Mobility, and Education
With this hybrid model, you cover all the bases:
Funding groundbreaking, sustainable projects that tackle big social challenges.
Boosting social mobility by making education and entrepreneurship more accessible.
Reinvesting part of the financial returns into research and education, creating a cycle of performance that drives ongoing innovation and impact.
Simply put, it’s a win-win. We’re generating returns while creating lasting social impact — offering a solid solution to the funding challenges that schools and research centers face.
Embracing Impact Capitalism
In a world where capitalism still dominates, it’s time to leverage it to fund essential social initiatives like education, workforce development, and humanitarian work. This hybrid approach of blending performance with philanthropy, already proven in the U.S., has the potential to transform our schools, our companies, and our society.
As Europe searches for sustainable economic models for its educational and research institutions, paving the way for impact capitalism has never been more urgent.
Thanks a bunch for reading this far! Feel free to share this edition (and the previous ones) and enjoy lots of perks: stickers, caps, access to events…
Previous articles you'll love :
Catch you soon!