As women get richer, they are also changing the face of philanthropy
- Women tend to be more hands-on and will try to go beyond a simple donation to deepen and broaden the impact of their funds
- Women philanthropists are also concerned about redressing gender issues that in the past may not have received adequate attention
In Asia and elsewhere, female philanthropists are stepping to the fore and pioneering innovative ways of giving at the same time as meeting community needs.
The role of women in driving philanthropic goals has grown alongside the number of wealthy women. There were 328 women billionaires last year, according to Forbes, a rise of 36 per cent year on year, and the global wealth of women is estimated to reach US$81 trillion by 2023.
The timing of this transition is significant. Systemic challenges are amplifying needs, be they in public health, environmental protection or tackling inequalities. Fresh thinking is required and female philanthropists are shaping a new way forward.
They are adopting a do-it-yourself mindset. For example, women are starting their own non-governmental organisations (NGOs) as opposed to just donating to existing ones. Many of these women spotted gaps in the causes they want to support and are funding the development of a solution. Women are supporting organisations instead of just giving to projects, as funding an organisation is a way to broaden the impact.
This represents a more human-centred way of giving, with women philanthropists paying more attention to identifying the promise of an organisation and empowering its leadership to find ways to address challenges. This approach requires an alignment of values such as compassion and empathy, which many philanthropists believe should be instilled early in life.
Their values-driven approach also means women are no longer just providing the funding. They are also bringing in their friends and family to support the causes they favour, through various forms of complementary and non-monetary support aimed at strengthening organisations and enhancing their impact.
Women are also contributing to the rise of impact and gender-lens investing, which many are coming to see as complementary to traditional forms of philanthropy. If measurable outcomes are the goal, then a mindset that links financial returns with generating positive societal impact will deliver success in giving.
A noteworthy driver animating female philanthropists today goes under the mantle of “women supporting women”. Not only are these women changing the face of philanthropy, but they are also concerned about redressing gender issues that traditionally may not have received adequate attention from the philanthropic community.
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Key to this effort has been women shifting philanthropy from what has been dubbed an “ego system” to an ecosystem. This more inclusive and collaborative approach enables the co-creation of solutions between givers, receivers and stakeholders. Such innovation is ideal for beneficiaries because they are the closest to the issues and can bring the perspective needed to create novel organisations for distributing resources.
Women are also championing new and dynamic approaches to create more lasting changes. There is a paradigm shift under way from only providing aid in the form of grants and donations towards a more holistic mindset that includes investments and the application of business solutions to advance development. Women support a total-portfolio approach, which is enabling impact through a range of financial activity from grants to capital investments.
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The total-portfolio approach goes beyond grant-making and attempts to make philanthropic activity more collaborative, which often leads to the formation of giving circles, in which a group of people get together to collectively fund and develop solutions to problems.
The first giving circles were created by women and today some 70 per cent of them feature a majority of women. They embody the innovative effort to democratise philanthropy. Giving circles reflect the power and promise of the ecosystem approach to philanthropy and are creating new possibilities for change.
The rise of female philanthropy is promising to disrupt and at the same time advance the giving landscape. As women control more of the world’s wealth, they will have a unique opportunity to pioneer new approaches to overcoming challenges and creating solidarity around the issues of our time.
Dorothy Chan is head of Philanthropy Advisory Services, Asia-Pacific, at HSBC Global Private Banking
