Philanthro-Capitalism: Re-Modeling the Philanthropic Paradigm

Abstract

Philanthro-capitalism is often defined as the practice of applying business methods and measures to philanthropy, or harnessing the power of the market to achieve the goals of social change. Unlike giving a one-time grant to an outside charity, being a stakeholder in an enterprise ensures the money will be utilized properly. A market based approach to philanthropy, with one eye firmly on the bottom line, can be an effective way for entrepreneurs to meet their social goals. Their philanthropy is “strategic,” “market conscious”, “impact oriented,” “knowledge based,” often “high engagement,” and always driven by the goal of maximizing leverage of the donor’s money.