The Journey Towards More Effective Giving

If you are among the fortunate ones who have managed to multiply their wealth to many millions or billions, then the decision to donate to charity is one that should not be made in a snap. Nowadays, philanthropists are becoming more and more keen that the money there are funneling to charities are being used properly and effectively.

The concept of strategic philanthropy involves giving that is built around careful research and structured strategies to make it as effective as possible. This notion has recently been the trend in giving. It is actually an attempt to go beyond the usual charity where you just give your monetary donations without knowledge on how it is going to be used. Several organizations are now in place to dispense advice to those who want to make sure that the portion of their wealth they are parting with will certainly go to good causes.

Before, people have been focusing on the administration costs. But now, philanthropists are encouraged to concentrate more on the output of their donations instead. So, charitable organizations are now pressured to produce concrete proof of results. For example, with regards to education programmes: Philanthropists would want to measure the impact of their donation to the results of these programmes.


One of the reasons why funders have turned to strategic philanthropy is the financial crisis that hit the world in the last few years. Those who are blessed enough put their money in a foundation, invest it then circulate the interest to charitable projects. But this process has produced lesser financial returns on their investments. So now, they want to focus on funding that really provide an impact. The crisis has also caused government funding to dry up, thereby leaving it up to the potential benefactors to decide about taking over and replacing the funding.

Another trend is the social impact bond, which aims to utilize private investment to block social problems and save the government money. In this phenomenon, philanthropists usually provide advance funding and are remunerated by the government if the targeted goals have been reached. The higher the social impact, the higher the return.

Some remain sceptic regarding the long-term success of social impact bonds, and others have accused them of being just another form of privatization. Still, the ultimate goal is to utilize philanthropic fund in the best way it should be — and this is exactly what philanthropists are working to achieve.

Do you think strategic philanthropy is better than the traditional? Have you involved yourself in some charitable activities lately?

Source: Triple Pundit

Hugo Chavez Wins Re-Election Presidential Bid In Venezuela

Venezuelan President Hugo Chavez has won a fourth term in office, after opposition leader Henrique Capriles admitted defeat. Mr Chavez won 54% of the vote, the country’s electoral council announced, with turnout at about 81%.

Mr Chavez said Venezuela would continue its march towards socialism but also vowed he would be a “better president”. Electoral council president Tibisay Lucena announced that with 90% of votes counted Mr Chavez had taken 54.42% of the vote with Mr Capriles on 44.97%.

A subdued Mr Capriles congratulated Mr Chavez but told opposition supporters not to feel defeated. Mr Capriles said he hoped Mr Chavez would recognise that almost half the country disagreed with his policies: “There’s a country that is divided and to be a good president means to work for all Venezuelans, to work for the solution of all Venezuelans’ problems.”


Mr Chavez, 58, was diagnosed with cancer last year but says he is now fully recovered. He has been in power since 1999 and said he needed another six-year term to continue his “Bolivarian revolution” towards socialism. During his time in office Mr Chavez has nationalised key sectors of the country’s economy. Venezuela is a major oil producer and high oil prices have allowed his government to fund healthcare, education programmes and social housing.

In his campaign, Mr Capriles, who headed a coalition of 30 opposition parties, said the president’s policies had led to bureaucracy, inefficiency and shortages.

Do you think Venezuela will have a better future during the fourth term of President Hugo Chavez? Would Henrique Capriles have made a better Venezuelan President? Feel free to air out your opinions below!

Source: BBC News

Image: Sassy Wire