Giving Compass' Take:
- Here are several trends in philanthropy that describe its recent evolution, including the impact and prevalence of technology in the sector.
- How has tech influenced or altered your charitable giving?
- Read about these insights on technology in the nonprofit world.
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Most people think of philanthropy as a niche, feel-good space supported by simple donations rather than the massive global market that it is. A market that continues to affect policy and change millions of lives worldwide. The nonprofit space currently encompasses an impressive 2.1 percent of the total U.S. GDP, mobilizing over 1.5 million nonprofit and funder organizations, and $410 billion of investments in the social sector.
The sector continues to grow thanks to several factors and is now benefiting from improved technology. The tech for good space underpins modern philanthropy, increasing philanthropy’s reach and impact with solutions based on AI, blockchain, and even cryptocurrency.
Each year billions of dollars are in play between givers and doers. In fact, charitable giving is on the rise in both the for-profit and nonprofit sectors. According to Giving USA Report, in 2017, for the first time, charitable giving surpassed the $400 billion mark – reaching $410.02 billion in the U.S. alone.
Much of this growth in giving is driven by energized, more tech-centric givers than in years past. These donors are willing to invest not only because of operational improvements, but because they are trusting that the donated money is going somewhere good and creating tangible impact. This mindset has created an industry-wide need for financial accountability and transparency that leverages data-driven impact reporting.
As we move into the remainder of 2019 and beyond, it’s clear that new technologies like AI, blockchain, and cryptocurrency also represent an exciting step towards a fast-paced future of philanthropy.
AI: Cognitive-based tools are becoming prevalent in all facets of our lives and philanthropy is no different. Increasingly, the industry is understanding the immense benefits that AI promises for automating key tasks, aggregating information, and helping both givers and doers to apply data-based insights to better raise and allocate funds. Philanthropy, at its core, relies on sharing and understanding information to improve our processes, and AI allows this to be done in a more targeted, efficient and insightful manner. AI can aggregate information from anywhere that it exists into a common data store, then layer on logic and context (such as an organization’s specific mission), helping to ensure that we’re making decisions that truly further our goals and overall strategy, and in turn increase our industry impact.
Read the full article about technology and philanthropy by Kerrin Mitchell at Fluxx.