Defining the Elements of Open Source Philanthropy

Research and development conducted by Community Foundations of America (CFA) suggests that an ambitious new framework is emerging to catalyze social betterment globally and that this framework will radically redefine philanthropy.  We call it Open Source Philanthropy.

At a most basic level, Bill Gates launched this new phase of philanthropy when he embraced the challenge of not only of addressing but actually resolving major global health issues. Warren Buffet's alignment with Gates, as well as his more recently announced efforts to decrease nuclear proliferation (NYT Editorial 9/27) marked the beginning of a trend. In its cover story (9/25/06) on Bill Clinton entitled, the "Power of Philanthropy," Fortune describes yet another icon who, despite his own modest checkbook, is pioneering "a new business model in the battle to save the world." (What was the old business model for saving the world?) Then comes along Page and Brin"

Having transformed their respective industries, these guys don't care much about how philanthropy and America's Nonprofit Sector has operated in the past. Instead, they are modeling for a new generation of philanthropists approaches poised at the sweet spot between what business isn't motivated to do, and what governments and charities have been unable to do.

We believe their actions over the past two years, as well as donor engagement research we have conducted over the past six years, point to this "open source" approach that will be characterized by three fundamentally interrelated elements. They include: marketplace dynamics, knowledge networks and cross-sectoral alliances.

Knowledge Networks: OSP will be driven by a nuanced fusion of knowledge management and social networking tools. This combination will be used to capture what works to effect change in ways that can be customized to the needs of individual communities (much the same way technologists create and share open source code.) This Knowledge Network will be characterized by an organic interplay of donors, consumers and providers that come together in new ways to get things done.

Marketplace Dynamics ���OSP will require virtual marketplace(s) which matche winning solutions and a wide array of resources. Because not everyone has the billions to spend, these marketplaces will enable donors to identify promising approaches and pool resources to support them. Unlike traditional philanthropy in which resources and ideas have flowed primarily between individual funders and nonprofits, this open marketplace will support the inherently collaborative nature of philanthropy.

Cross-Sectoral Alliances -- Over the past decade, numerous examples have emerged to demonstrate the power of alliances that transcend traditional boundaries between the nonprofit, government and business sectors. OSP will be characterized the rapid expansion of such approaches and fueled by the new talent required to negotiate approaches that balance, to name a few: community needs, business incentives and governmental capacity.

Obviously none of these elements are in themselves new.  Each is being widely used to fuel innovation in the for-profit sector. Open Source Philanthropy will be characterized by the speed and impact with which these elements are applied to global challenges, and the ways in which they engage "next gen" philanthropists more broadly.

Susan Herr