In this moment of fundamental rupture and breathtaking change across the US government and civil society, there’s no shortage of thoughtful counsel and alarm-ringing within the philanthropic sector. But despite the abundance of information and the urgency, the path forward isn’t always clear, showing the importance of decisively turning uncertainty into action.

In our work as philanthropic advisors, we've seen three distinct responses emerge. Some foundations and family philanthropists are making significant changes to their approach—increasing payouts, shifting funding strategies, and/or taking calculated risks. More remain in holding patterns, perhaps signing public statements but not yet ready to change their fundamental approach or make new grants. Still others are eager to change course but feel isolated or afraid, not benefiting from the courage of their quieter peers. Among family givers in particular, disorientation, fear, and a sense of feeling stuck seem to dominate.

But this chaotic moment gives donors the precious opportunity to ground themselves in their “why” (what motivates them to give) and recommit to their "what" (which causes and organizations they fund) while revising their "how" (the way they give). This grounding process can both activate the courage necessary to address current challenges and influence others who otherwise might not feel emboldened to act.

The way forward is the fundamentally the same for large legacy institutions and charitable families alike. As author Dimple Abichandani advises in her book, A New Era of Philanthropy, “instead of waiting and seeing, we must do and learn.”

10 Questions to Move Donors Forward, Turning Uncertainty Into Action

The following questions can help open up new ways of thinking and energize donors who are looking to pivot but aren’t sure how to proceed. It’s not necessary to answer all of them; donors should choose the ones that make the most sense for their mission and the communities they seek to serve.

  1. Why not seed endowments or other forms of “durable capital” for grantees whose work is particularly valuable to their field or community? If you're worried about sustainability in a volatile environment, or want to help grantees scale, partner, or diversify more effectively, consider giving the gift of financial stability through endowment grants or future-focused growth capital. The Schott Foundation’s 2022 campaign to raise endowment capital for nonprofits led by people of color offers an example.

Read the full article about turning uncertainty into action by Catherine Crystal Foster and Philippe Sion at Stanford Social Innovation Review.