"Catalytic Philanthropy" by Mark Kramer (Post #2)

This week I’ll be reviewing an article from the Fall 2009 issue of the Stanford Social Innovation Review by Mark R. Kramer entitled “Catalytic Philanthropy.” It is an inspiring look at donor commitment to a cause and the difference this can make. This is the SECOND in a series of posts.

Mark Kramer urges the funders themselves to get into the game of problem solving. They must personally become deeply engaged, identify the real issue, analyze its root cause, expand the toolkit to approach the issue in new and innovative ways, and form coalitions of like minded people across all sectors to collaborate and brainstorm with them. And only then will some real answers emerge.

What can catalytic funders do that nonprofits can’t? Among other things, they can leverage professional and personal relationships, build coalitions, start public-private partnerships, influence government. In summary, they can coordinate and engage stakeholders like a single nonprofit can not do.

What makes such funders “exceptional” is not their generosity, as many donors are generous. Rather, it is their willingness to take on responsibility themselves for improving social conditions, and not leave it solely with the nonprofits they fund. Because of this, catalytic philanthropy goes many steps beyond conventional philanthropy, and even beyond the current model for venture philanthropy.