Giving Compass' Take:

• Connie and Steve Ballmer explain why their philanthropic strategy is based around partnering with government to make a lasting impact. 

• Is this the right approach for your philanthropy? What are the disadvantages of this approach? 

• Learn about philanthropy's value in the public sector. 

When asked why we believe philanthropy must work closely with government, the reason we give is simple. When it comes to helping American kids and families on a national scale, government is where the money is.

Consider this: the U.S. government spends more than $1.3 trillion per year to help disadvantaged people in areas like health, housing, and nutrition, not even counting the education budget. All U.S. philanthropy for human services and public society benefits adds up to only six percent of that total.

We are fortunate to have a system of hardworking people at all levels of government who allocate those $1.3 trillion dollars. But these public servants can’t solve everything. To seriously tackle the toughest challenges, we need collaboration across multiple sectors like business, philanthropy, and academia, as well as across party lines. We all have a role in making sure our precious tax dollars are used effectively.

Government provides most of the money, but philanthropy can provide the stimulus for innovation and change.  Here are a few examples of challenges and ways private dollars can contribute:

Adaptability. Once government funding is appropriated for a specific issue, it is slow to evolve, even when new approaches to problem solving have emerged.

Scope. While governments pay nonprofits to provide services for individuals and families, most government contracts pay less than what it really costs. This funding gap leaves nonprofits strapped, unable to cover their fixed costs, innovate, or grow.

Experimentation. While government provides the biggest safety net for people experiencing poverty, few of these resources are allocated for trying new things - even if officials know the old approaches aren’t getting good results.

Government is where the money is. And the entire community – including philanthropy – is here to help make that money work as hard as it can.

Read the full article about partnering with government by Connie and Steve Ballmer at Ballmer Group.