Here Are the Top Philanthropy Stories We're Following in 2022

Here at Inside Philanthropy, it’s always been our belief that philanthropic giving is one of the fundamental forces shaping society—and that makes it worthy of close attention and scrutiny. We’re always looking to tell new stories and examine new angles on the most important philanthropic players: from venerable private foundations to rising billionaire donors, from innovative leaders to organizations that could up their games.

But just as we’ve made it our business to track specific funders, we’re also all about the broader picture. How is philanthropy changing, and how is it staying the same? What are the key drivers of change in the sector? What are the key impediments? What forces are shaping the future of nonprofit funding? And how can organizations best position themselves to take part?

At the start of each year, we ask ourselves these very questions as a way to step back and consider where philanthropy is headed, and what developments our team should be watching closely in the months ahead. It’s an exercise that helps guide our coverage, but this year, we thought we’d share the list with readers to offer a sense of what’s got our attention in 2022. This isn’t an exhaustive list, and it’s not in any particular order. And as always, there will be plenty of new twists and turns ahead. As the year unfolds, look forward to lots of new coverage digging into these developments and more.

The rise of the mega-billionaires

We’ve taken to calling them “apex donors”—people like MacKenzie Scott, Laurene Powell Jobs, Jack Dorsey, Jeff Bezos and, if I may, Elon Musk. In a new Gilded Age, skyrocketing wealth inequality has elevated a chosen few into positions of extreme influence in the sector. They are mega-billionaires whose wealth far outpaces that of the richest foundations, whose business roles and giving power combined make them titans, not only in the nonprofit world, but across contemporary society. Their giving isn’t always transparent, nor is it always selfless. But it can be effective.

Like it or not, their decisions will likely be just as impactful on philanthropy’s evolution as those of Rockefeller or Carnegie. But luckily, apex donor giving isn’t a one-way street. By power of persuasion, and perhaps, in some cases, by force of law, there are ways the rest of us can influence how these 800-pound gorillas behave.

Democratization of philanthropy

Democratization is a buzzword that gets thrown around a lot these days, but is it actually happening? Or is it all talk? We’ll be monitoring the debate around power dynamics in the grantmaking world, and who’s actually finding ways to challenge traditional hierarchies.

In particular, the pandemic has opened up a more vigorous debate around age-old questions of power in the sector: things like staff diversity and disconnects between staff, boards and grantees, questions of payout, what more flexible grant application and reporting requirements look like, and what effective participatory grantmaking looks like. As COVID drags on, will grantmakers abandon new practices and return to what’s familiar? And are these new approaches always the best way forward?

Changing philanthropic practices

Not too long ago, established private foundations were the kings of the philanthropic hill. They gave cautiously to well-vetted 501(c)(3) nonprofits and steered clear of anything deemed too political. Meanwhile, most major donors contented themselves with alma maters, capital projects, and their names on an art gallery or two.

While traditional philanthropic practices are still alive and well, the picture’s growing more complex. Over the past several years, many donors have adopted new playbooks, working with alternative forms of giving and investment in combination, and often behind closed doors.

We’ve seen the rise of the big LLCs—places like the Chan Zuckerberg Initiative, Arnold Ventures, the Emerson Collective and the Omidyar Network. Donor-advised funds are also growing by leaps and bounds, to the chagrin of transparency advocates. At the same time, 501(c)(3) policy advocates and 501(c)(4) lobbying groups are awash with newfound cash on both sides of the political divide. And a good deal of it comes from those very same DAFs.

Then there’s impact investing and divestment from harmful industries, along with all manner of social entrepreneurship efforts that blur the lines between philanthropy and business. Finally, philanthropic intermediaries, collaboratives and fiscal sponsors are all having their day in the sun as funders expand their toolboxes.

Politicization of philanthropy

In today’s explosive political climate, funders are becoming less shy about entering the fray. Sure, there are some lines 501(c)(3) philanthropy can’t cross, but the rules are easy to bend. There are plenty of perfectly legal ways for philanthropic funders to throw their weight around in the political arena, and more of them are doing just that.

On one hand, that’s a good thing. Funders can often get the most bang for their buck by influencing government policy, arguably achieving much more in terms of raw impact than by what they could foot the bill for themselves. In many issues, progress is all but impossible absent engagement with politics. But is all this philanthropic influence on the levers of government something we want in the long run?

The reckoning on racial justice

Calls for philanthropy to step up for racial justice far predate the pandemic era, but we’ve witnessed historic events over the past two years that have spurred some funders to greater action. Nevertheless, words still tend to outpace deeds. We’ll be monitoring how well funders have kept the promises they made in 2020, and where philanthropy’s falling short.

Did funders examine their programs and practices on a deep level, or did they take token actions only? Are funders really directing more resources to impacted communities, or just talking about it? Is the sector embracing more representation from communities of color, both on staff and in governance? And to what degree is the ongoing backlash against racial justice movements affecting philanthropic support?

Response to urgent global challenges

The pandemic has had center stage for a while now, but it’s hardly the only crisis we face. A whole host of first-order challenges demand philanthropy’s attention—beginning with the era-defining problem of climate change, but also encompassing threats to democracy at home and the rise of authoritarianism abroad.

Let’s also not forget the potential unforeseen consequences of the ongoing technological explosion—issues around artificial intelligence or cybersecurity, for instance—as well as ever-present existential threats like nuclear armament. And there’s no guarantee we’ll have a 100-year respite before the next pandemic.

Calls for philanthropic reform

Last, but certainly not least, we’ll be tracking the philanthropy reform story, focusing on legislative or judicial efforts aimed at changing how nonprofit giving works. The Accelerating Charitable Efforts (ACE) Act has been the most prominent such legislative proposal, and it encompasses potential legal changes in areas crucial to the reform debate—like the regulation of DAFs and the level of mandated foundation payout.

Whether or not the ACE Act or similar proposals ever make it into law, the heightened debate over modifying long-standing nonprofit giving rules is another sign of a sector in flux. In addition to monitoring reform efforts themselves, we’ll be tracking how funders and philanthropy-supporting organizations respond to them, giving further insight into who’s gunning for change and who’s beholden to the status quo.

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