Giving Compass' Take:

• Forbes examines the state of philanthropy with an eye toward the future, using some old wisdom from John D. Rockefeller to guide us to even more effective giving.

• Strategic philanthropy is the key component: What are we doing to make sure our dollars are going to the right people and places, with specific, measurable goals in mind?

• On that note, here are 10 trends in monitoring and evaluating impact.

The inevitable forces of aging and demography mean that baby boomers are on their way out — and they will pass on around $1 trillion per year to their kids, relatives, and charity.  Add on the sudden rise of large philanthropies funded by the tech boom’s leaders, and America has a booming business in philanthropy.

Indeed, the 21st Century has been called the “Century of Philanthropy,” and it is marked by a strengthened focus on delivering real-world results.  Since philanthropy is evolving, it is worth rethinking what works in philanthropy, and why it works — and also what fails.

A century ago John D. Rockefeller set the most influential course in the money-giving business.  He was a systematic thinker, and established several precepts for his giving, none of which have since been bested:

  • Aim your efforts at root causes of problems, rather than their symptoms
  • Go after the big issues — health, hunger, and education for Rockefeller. Today one would have to add environmental protection and climate change, the threat of nuclear proliferation, development, and pandemics
  • Take an objective approach to problem solving, relying on experts in the field, and continuously updating your efforts based on actual results
  • Take the long view — serious change is not susceptible to drive-by or big-bang approaches

Many of the problems facing new philanthropists — and established foundations — are only going to get worse over time, and sometimes exponentially worse. Overcoming them requires philanthropy that builds real insight and understands real needs, understands failure and learns from it, and accelerates programs that succeed. Without strategy, nonprofits just flail.

Read the full article about a clear strategy to make this the "century of philanthropy" by Hal Harvey and Paul Brest at Forbes.