The Power of Catalytic Philanthropy

The Power of Catalytic Philanthropy: So when you come to the end of the innovations that business and government are willing to invest in, you still find a vast, unexplored space of innovation where the returns can be fantastic. This space is a fertile area for what I call catalytic philanthropy.

Catalytic philanthropy has the high-stakes feel of the private market, but can transcend the key market limitations above: The investor doesn’t need a share of the benefits—those go to poor people, or sick people or society generally, all of whom stand to gain earth-shaking returns from the kind of innovations that business and government likely won’t pursue unless philanthropy goes first. And once you’ve found a solution that works, catalytic philanthropy can harness political and market forces to get those innovations to the people who need them most.

Pat Faubion: United Way's new strategy to bolster donors | News for Dallas, Texas | Dallas Morning News | Opinion: Viewpoints

Pat Faubion: United Way's new strategy to bolster donors | News for Dallas, Texas | Dallas Morning News | Opinion: Viewpoints: "All too often, the scattershot approach to philanthropy overtakes the more strategic concept of 'catalytic philanthropy,' which is investing enough resources to impact problems that have become societal issues. Sustaining 15,000 local charities is watering down our ability to put enough resources into the fight against these key community-level problems. We have not only sustained organizations, but have grown more, even in tough economic times. We have small victories, but pulling all of those small victories into one major solution has been a challenge."