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11 Trends in Philanthropy for 2023

Anticipate and embrace what’s next.
11 Trends in Philanthropy for 2023

Front cover of the "11 Trends in Philanthropy for 2023" reportThe philanthropic sector is an ecosystem: a web of interdependent actors, infinitely variable, striving constantly to build something greater than the sum of its parts.

In biology, ecosystems are made up of organisms — living things that are themselves made up of individual cells and multi-part systems working together as a single whole. Each organism is unique, responding differently to fluctuations in its environment.

The same is true in philanthropy. Each nonprofit, foundation, donor, community, or network is affected differently by our national and global zeitgeist. But as each player adapts to changes in that context, the sum of those many reactions can become a force of its own.

That’s why the word “organism” — and its forms, “organization” and “organize” — seems to be at the heart of this, our seventh annual 11 Trends in Philanthropy publication. The issues we cover this year zoom in on how the forces rippling across our ecosystem are playing out at the level of individual organizations. Public accountability, investment decisions, distributed leadership — these are questions that each person and each partnership must answer for itself.

Philanthropy is also getting organized and reorganized. Funding collaboratives, unionized labor, new governance structures — individual actors are making moves, coming together to cause change on a broader scale. As ideas and methods gain attention, they introduce yet more dynamism to the environment.

Today, we see this push-pull at work. In 2023 and beyond, we’ll see how it plays out.

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11 Trends in Philanthropy for 2023

Photo of green paper doll cut-outs propped in a circle around a stack of one hundred dollar bills, representing the concept of collaborative funding

The Rise of Collaborative Funding

Recent research from the Bridgespan Group illustrates an undeniable rise in funder collaboratives in the sector — especially since the beginning of the pandemic. Many of the biggest names in philanthropy, such as the Bill & Melinda Gates Foundation and MacKenzie Scott, are already onboard. Together, they’re repositioning collaboration as the starting point for change — and moving hundreds of millions of dollars.

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A professional woman looks out a window in thought, as if rethinking capacity building.

Rethinking What Capacity Building Should Be — and Who Should Decide

Ever since Lester Salamon rang the first alarm bell about organizational infrastructure challenges in 1999, the sector has tried to come to terms with what ”capacity building” is and how best to do it. Philosophies and tactics run the gamut, from one-off training exercises to general operating support. As more nonprofits and funders seek out ways to further their impact and sustainability, power and equity are at the center of a growing movement to reimagine the language and practices of capacity building.

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Photo of floodwater rusing over the streets in Kemah, Texas, during Hurricane Harvey in 2017.

Disaster Philanthropy is Transitioning for the Long Haul

Philanthropy’s traditional approach to natural disasters has been simple and predictable: disaster strikes, media attention skyrockets, and individuals and foundations rush to provide immediate relief. Focus soon shifts elsewhere — to another disaster somewhere else.

However, as the frequency of natural disasters increases dramatically, philanthropic actors are rethinking how they engage over the long term to support community resilience, ecological health, and a justice-focused response.

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Photo of the Chicago Sun-Times building in downtown Chicago. The Sun-Times is one example of a for-profit news outlet that has been acquired by a nonprofit media organization (Chicago Public Media).

For-Profit News Outlets are Exploring Nonprofit Models

Nonprofit news start-ups are at the forefront of combatting America’s expanding news deserts and battles with misinformation. But as journalism’s traditional business model continues to stumble, many for-profit news outfits — legacy brands and 21st-century digital natives alike — are moving to explore, adapt, and adopt the nonprofit model. We identified three emerging models that indicate a shift in the future of news media.

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Photo shows two sets of colorful wooden blocks on a table. One set is neatly organized in rows and columns while the other set of blocks is scattered and waiting to be organized in some way, representing different organizational structure models.

New Organizational Structure Models are Toppling the Staff Pyramid

Too often, the weight of an entire organization can land on one set of shoulders — perpetuating cycles of burnout and economic and workplace inequity, while also denying team members critical opportunities to grow, share, and contribute. Now more nonprofits are looking for opportunities to spread the work, the responsibility, and the credit with more staff — and even other organizations.

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Photo of the U.S. Capitol Building in Washington, D.C.

Policymakers are Paying Increasing Attention to Moving More Money Faster

Donor-advised funds, foundation payout rates, the influence and reach of wealthy individual philanthropists — it’s nothing new in our sector to debate whether and how we could be moving more money into nonprofits and communities. The COVID-19 pandemic added urgency to this conversation, but the most significant change in the landscape is coming from the U.S. Congress. Policymakers appear increasingly interested in philanthropy’s spending habits.

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Image of a globe made of grass and greenery sitting on the ground next to three wooden blocks with the letters ESG on them.

ESG Backlash Will Affect the Future of Philanthropy and Impact Investing

The acronym “ESG” stands for “environmental, social, and governance” and it’s a shorthand for a range of criteria used to evaluate for-profit corporations, often in the context of investing. However, voices across sectors are now questioning how useful or fair ESG standards are. That question is spilling over into philanthropy — where foundation endowments, impact investing, corporate giving, and more are all part of the debate.

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Images of a series of black arrows pointing up and to the right in a line, indicating progress, with one red arrow pointing off course. (represents maintaining focus on racial equity)

Will Philanthropy Stay Focused on Racial Equity?

Philanthropy’s response to today’s racial justice reckoning raises the question of when foundations and donors are being truly responsive, reflecting on and changing current practices and priorities, and when they are simply jumping on a trend that might not last. Across the ecosystem, there is room for hope. But it may be too early to tell whether philanthropy’s commitments to racial justice represent a real turning point.

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Photo of dozens of union-represented hotel workers protest outside of the J.W. Marriott's Westin St. Francis hotel in San Francisco's Union Square on Labor Day, 2018. (photo represents the concept of unionization)

More Nonprofit Employees are Moving to Unionize

In a 2022 Gallup poll, 71% of Americans said they approve of labor unions — the highest percentage since 1965. After decades of declining enrollment, organized labor is back on workers’ minds. Within the nonprofit sector, staff at institutions as diverse as art museums and think tanks now see unionization as a pathway to better pay, greater wellbeing, and increased equity.

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Electronic outdoor sign shows the message "Data Not Available."

IRS Delays and Other Barriers to Data Mean Real Risks for Nonprofits

Since the IRS began making the mass of Forms 990 available to the public online in 2016, nonprofit sector data has become far more accessible to researchers, policymakers, and the general public. But pandemic-driven delays in processing and release, as well as fragmentation and challenges in the data ecosystem itself are now putting those gains in jeopardy.

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Close-up photo of a compass with the arrow pointing to the word "MISSION" (meant to represent the concept of mission accountability)

The Public is Holding Nonprofits Accountable to Living Their Mission and Values

Public accountability is woven into the fabric of many social structures. In government, for example, elections serve as a direct avenue for voters to approve or disapprove of leaders’ actions. But the mechanisms for holding a nonprofit organization accountable — for its actions, fiscal choices, community relationships, etc. — have not always been so clear, accessible, or publicized. Thanks to web-based innovations as diverse as Form 990 databases and social media memes, that may be starting to change.

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11 Trends in Philanthropy for 2023

PLUS… Free Trends Webinar!

The pace of the news cycle and the mental and emotional weight of our global context did not lessen this year — and no signs indicate they will anytime soon.

Join Tory Martin along with many of the 2023 Trends report’s authors and researchers for a session exploring this year’s trends and their relevance to the daily work of nonprofits, foundations, donors, advisors, and others.

Come prepared to ask questions and share ideas!

Join us Tuesday, February 14 @ 1 p.m.

Register for Free