In today’s fast-evolving philanthropic landscape, funders face the challenge of moving beyond traditional funding practices to maximise impact.

Philanthropy is no longer confined to a small group of high-net-worth individuals or established foundations and trusts. Now, many people have their fingerprints on effective giving, including people with large or moderate amounts to give. With this in mind, here are four tips from Savvy Giving author Genevieve Timmons to encourage focus and enhance the value of every philanthropic dollar.

Tip 1: Understand the contemporary philanthropy ecosystem

The first tip is to recognise and understand the evolving philanthropy ecosystem. Many people are actively engaged with the work of philanthropic giving and mobilising resources for a better world, and everyone has a role to play in securing impact from philanthropic dollars.

It’s important to recognise the people who take on roles as wealth distributors, value adders and value creators. This includes board members, staff and advisors of giving funds, membership networks, community and corporate leaders, policymakers and researchers, managers of technology platforms and information systems, and many more.

Most importantly, value creators such as not-for-profits and community leaders are pivotal in bringing money to life. They take forward the strategic intent of funders, connecting with the many causes and communities philanthropy is there to serve. Remember without the value creators, all we have is money.

Tip 2: Seek out peer alignment and collaboration

With the increase in dollars and new giving infrastructure, there are more ways for funders to share knowledge and form partnerships for greater efficiency and impact. Funders are now moving beyond working in silos and choosing their giving focus based on personal experience and known networks.

Countless players are bringing new partnership options to the table, offering ways to pool funds and collectively share knowledge. Large scale funders are inviting collaborations to achieve impact at scale; community foundations are offering a safe and informed pair of hands for donor-advised funds and geographic focus; specialist networks, giving circles and social entrepreneurs are leading out with sharpened focus on specific issues and targeted giving. All these players welcome peer engagement and shared vision on how and where philanthropic dollars flow.

Aligning with relevant partners who share your values helps maximise the reach and effectiveness of your giving. Other mutual benefits include support for practical management of giving, increased creativity in approaches and ideas, risk analysis and mitigation, and shared knowledge and learning that can be tailored to ensure best outcomes. 

Take the chance to share knowledge and collaborate with others through initiatives like the ACF Impact Fund or Mannifera, and watch the value your granting can deliver.

Tip 3: Maintain an open mind and continual learning stance 

A learning mindset is essential for effective giving and does not always require significant time or resources. Learn by sharing evidence, monitoring emerging trends, and engaging with specialist networks and the peak body Philanthropy Australia. 

Leaning into new conversations and emerging ideas enriches your practice, and helps you apply contemporary thinking to your work. Information, data and stories are all readily accessible and willingly shared across the philanthropic ecosystem. Concepts such as Pay What It Takes, lived experience, self-determination, community-led, place-based, and systems change are all worth exploring to enhance your impact.

Learning involves both looking outward at the impact of the work you are funding, and inward at your practice and progress as a funder. Capturing insights from everyone involved and keeping an open mind will lead to continuous improvement – ‘we don’t know what we don’t know’. This commitment to learning is a perfect match with the pace of change in the philanthropic landscape – the best impact is assured with an open dashboard.

Tip 4: Find the right balance in funding partnerships

Funders are increasingly aware of how administrative demands and due diligence processes can drain resources unnecessarily. The final tip here is to take the lead in lightening the ‘funding burden’, which means ensuring the cost to potential partners seeking funds and reporting on grants is fair and appropriate.

Wherever possible, promote light-touch relationships as the ideal for everyone involved, which also lightens the load for funders. Practical ways to do this include offering untied funding, encouraging simple proposals, and designing grant agreements to meet compliance needs without being overly demanding.

When engaging with potential grant recipients and funding partners, proposals will ideally cover four critical components to shape a strong initiative:

• Values alignment: What is the vision for the world we are contributing to, and what are the values that underpin this work?
• Practical information: What are the relevant governance and compliance considerations, timeframes, budgets, operational requirements and fiduciary details?
• Creativity: How is the human face and social identity of the work brought to life?
• Commitment to learning: Where is evidence and past lessons built into the work, and how are learning loops built into the work going forward?

A final word on risk and compliance from Georgia Mathews, philanthropy consultant and former ACF Director of Philanthropy, as quoted in Savvy Giving: “The longer I am in the space the more evident it is that we need to unlearn some of our long-held beliefs around the question of risk…… Ask yourself if the organisation is eligible to receive funds from my entity? Have I taken steps to ensure I’ve paid the funds into the correct account, and confirm they have been received? If the answer is yes, from a compliance standpoint, you’re good. Philanthropic grants are gifts, and any other conditions we place upon them are a choice.”

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Philanthropy today is about more than just giving away money – it’s about being an active participant in creating positive change. By understanding the contemporary landscape, seeking collaborations, committing to learning, and finding the right balance in funding partnerships, you can make sure your philanthropic dollars have the greatest possible impact. These four savvy tips will help you give more thoughtfully so you can make a lasting impact on the causes that matter to you.

Learn more about Savvy Giving and order your copy here: savvy-giving.com