GivingNet research suggests that an ambitious new framework is emerging to catalyze social change and radically redefine philanthropy.   We call this framework Open Source Philanthropy. Open Source Philanthropy is characterized by three fundamentally interrelated elements:  social capital marketplaces, knowledge networks and multisectoral alliances, as well as a new breed of philanthropists willing to apply these elements to social good.

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) further advanced this new giving paradigm.  Then comes Bill Clinton, who, as noted in a Fortune cover story (9/25/06) entitled, the “Power of Philanthropy,” describes yet another icon who, despite his own modest checkbook, is pioneering “a new business model in the battle to save the world.”  Next, enter Page and Brin who eschew philanthropy as usual by setting up Google.org as a for-profit charity.

As trailblazers in the business and government sectors, these guys are approaching philanthropy with the same disregard for status quo and the old ways of doing things as they have their other successful enterprises. Instead, they are modeling for a new generation of philanthropists methods poised at the sweet spot between what business isn’t motivated to do, and what governments and charities have as yet been unable or unwilling to do. 

The efforts and actions of these philanthropic pioneers, as well as what research shows are the attitudes and desires of high net worth donors toward their charitable giving, point to this “open source” approach as the key to enhancing, scaling, growing and fundamentally changing philanthropy.  To borrow a term from Thomas Friedman’s The World is Flat, this radical shift toward a new philanthropic model is the result of a “triple convergence,” or perfect storm of three key dynamics:

• Knowledge networks – The nuanced fusion of knowledge management or the electronic capture of the knowledge assets of the organization, and social networking, or as defined by Wikipedia, “a category of Internet applications to help connect friends, business partners, or other individuals together using a variety of tools.”  Knowledge is power.  Shared knowledge leverages that power by taking it to scale.  Applying knowledge networking to philanthropy creates a dynamic that empowers donors with the information they need to connect their resources (dollars, time and relationships) to organizations working to solve the most pressing social problems of our day. 
• Social capital marketplaces –The nonprofit marketplace as it is currently structured has a two-fold problem: 1) it is difficult at best to get capital to high-performing social entrepreneurial organizations; and 2) the social processes used to mobilize charitable giving are inefficient and ineffective. At the same time, there is a body of research that indicates that there is potential for wealth management market dynamics in the philanthropic market. However, there is a future value proposition for philanthropy. That is, there is an opportunity to deliver philanthropic opportunities so strategically placed, so compellingly articulated, so personally relevant and so refreshingly accountable that they will significantly increase the scale and impact of philanthropy, thereby seeding and transforming the social capital marketplace. This opportunity requires the creation of a market infrastructure to attract more donor capital (what we call ‘engagement’), and improve accountability and reporting (targeting social entrepreneurs and other quality nonprofits).
• Multisectoral alliances– In the same way that Freidman’s triple convergence led to the shift in political and economic models from vertical to horizontal, philanthropy is shifting out of its traditional siloed approach to one that is collaborative and connected. 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.  Open Source Philanthropy is characterized by the rapid expansion of such coalitions and fueled by the new talent required to negotiate partnerships that balance, at a minimum, community needs, business incentives and governmental capacity. 

Open Source Philanthropy is characterized by the speed and impact with which these elements are applied to global social challenges, and the ways in which they broadly engage “next generation” philanthropists.