BLOG: How the rise of strategic philanthropists can inspire hope in global development
By Anna Frellsen, CEO at Maternity Foundation
Global development is under mounting pressure from various forces. The ongoing post-pandemic slowdown in global GDP is compounded by the disproportionate impact of climate change on vulnerable populations. In global health, we are confronted with multiple crises, including stalled progress in reducing maternal mortality.
These challenges, combined with immense strain on available funding, have created a perfect storm for global development. The gravity of the situation has intensified with the Trump administration’s recent freeze on USAID funding, which accounts for over 40% of global foreign aid.
In their ongoing efforts to address critical global challenges, humanitarian and development organisations are increasingly turning to the private sector—encompassing businesses and private foundations—for essential support. I recommend they also focus on the new generation of strategic philanthropists, who bring fresh perspectives and innovative approaches that contrast with those of previous generations.
These emerging strategic philanthropists are challenging organisations to rethink their funding strategies and redefine how they create meaningful, lasting impact. In my experience, they have the potential to be powerful catalysts for change, driving significant progress for the world’s most vulnerable populations and offering hope for global development in the years ahead.
However, unlocking their full potential requires a deep understanding of their approach and the ability to harness it effectively.
The New Generation of Philanthropists Want Long-Term, Systemic Impact
We are currently witnessing a growing number of billionaires, whose wealth grew three times faster in 2024 than in the previous year. Simultaneously, the philanthropic sector appears to be undergoing significant shifts as an estimated 84 trillion USD is projected to be transferred from the older to the younger generation by 2045.
Among these billionaires and next-gen philanthropists, we are seeing an appetite for giving, but their approach differs from previous generations. We can collectively refer to them as strategic philanthropists, as they are increasingly driven by a desire to achieve tangible results within their lifetime, taking a more calculated and purposeful approach to their giving.
Traditional donors and philanthropists often prioritize funding immediate relief efforts and specific activities, typically adopting a more hands-off approach. In contrast, these new strategic philanthropists seek active engagement, focusing on addressing root causes and developing long-term, systemic solutions to global challenges like poverty, climate change, and gender inequality.
It is a transition from “do good” charity to more long-term strategic investments; from focus on the input to the output or outcome. Rather than supporting isolated services or infrastructure—which risks creating islands of success—strategic philanthropists focus on strengthening the broader ecosystem to foster long-term, sustainable impact. For example, instead of building a school or financing an ambulance, the focus is on strengthening the underlying systems.
The proverb goes, “Give a man a fish, and you feed him for a day. Teach him to fish, and you feed him for a lifetime.” The strategic philanthropists wish to go even further, exploring how they can strengthen the underlying fishing industry itself (with the risk of taking the fishing metaphor too far).
New Approach Needed to Engage the New Generation of Philanthropists
To engage effectively with the new strategic philanthropists, organisations must recognize that they are not merely financial supporters but also co-creators, strategic enablers, and thought partners. These new philanthropists aspire to be strategic partners and integral participants in the causes they champion. They often wish to bring more than just financial support—they contribute knowledge, skills, and network opportunities to the cause.
The strategic philanthropists prioritise strategies that ensure resources are used effectively and efficiently to achieve measurable, lasting outcomes, often with an investor mindset. Their approach is at the same time more flexible and trust-based than many traditional donors. The focus is on the social impact that emerges from the investment, rather than just the concrete activities it funds. They tend to invest in strong organisations and causes, rather than in individual projects or activities.
If organisations embrace this approach, they can transform these new philanthropists into lifelong allies and catalysts for lasting change, united by a shared mission. In my experience, simply accepting a check from this growing group of strategic philanthropists will undoubtedly leave a lot of value on the table – and often they will not be satisfied with their support being reduced to just that.
Models for How to Engage Strategic Philanthropists
Many strategic philanthropists prefer to collaborate with others, leading to the emergence of numerous collectives where organisations create platforms to unite their efforts and amplify their impact. The Maverick Collective and Women Moving Millions are good examples of this.
As CEO of the international NGO Maternity Foundation, I am also seeing how strategic philanthropists can be effectively engaged. With our Global Maternity Partner Programme, we are engaging a select group of families and individuals from across the globe. With our first three partners on board, they are helping us open doors, explore new ways of working, and rethink our approach to maximize impact.
I am confident that the opportunity ahead is immense, not only for Maternity Foundation but for many other organisations —but only if we can welcome these philanthropists as strategic partners, co-creators, and thought partners, harnessing their knowledge, skills, and network towards a join, greater cause.
In the spirit of optimism during these challenging times for global development, let’s join forces with all partners—including these new strategic philanthropists—to seize all opportunities at hand and build a healthier, more sustainable world, together.
